Business Summary:
During the seller’s three years of owning this successful 13 year old paint your own pottery business, she moved her core operation from an obscure location in a West Michigan mall to an expanded and prominent position in the same mall. In late 2008, she opened an even larger second location in an established strip mall next to West Michigan’s premier shopping mall.
Her investment and business strategy have paid off. Her two stores combined are tracking for a terrific 2009 with revenues well exceeding $300,000. 2009 cash flow to the owner should approach $150,000. Unfortunately, the seller is in the process of a divorce and her two older children who have been important part time workers in the business are both moving on. The obvious solution is to offer the business for sale. Clearly her loss could be your gain.
The mall site has 2,250 sq. ft. while the strip mall site has an impressive 3800 sq. ft. footprint. The original business has been in the same mall for 13 years but in the new site for fewer than 18 months. The strip mall site was brand new just six months ago so both sites are ideally located, clean, bright, new, and impressive.
Besides the owner, the businesses are managed by seven part time high school and college students which include two of the seller’s children. With very low labor and material costs (cost of goods sold average less than 20% of revenues), the only meaningful cost is rent, and the seller has attractive leases at both locations.
Both locations combined are being offered for $279,000 which is less than 2.0x seller’s discretionary earnings. The seller is willing to carry a meaningful note for an enthusiastic, qualified, but undercapitalized buyer. The sale of the business includes $35,000 of fixed assets, over $15,000 of inventory, an attractive website, and the trademark on the clever and recognizable name.
For more information of this fun, profitable and outstanding business opportunity, please call Mike Greengard at 616-285-8121.
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