Catylist ID: #30669334
Bicycle Shop For Sale - Same Owner 30 years
Business Opportunity for Sale
|Catylist Listing ID:||30669334|
|Property Subtypes:||Retail Stores|
|Building Size (RSF):||1,657 SF|
|Year Business Established:||1985|
|Gross Revenue:||$320,000 (Annual)|
|Cash Flow:||$60,000 (Annual)|
|Cash Flow Type:||Sellers Discretionary Earnings|
|Sale Terms:||Possibly, depending on price, if qualified, $100,000 down over 2 years at 6% interest|
Overview / Comments
This business sells all types of bicycles, accessories and repairs all models and types of bicycles. Their market is mostly local residents from nearby CT towns in Fairfield & Litchfield counties.
The Owner who is planning to retire, has been in this industry over 40 years, 36 of which has been in New Milford, CT. The business has been located at its current address for 14 years and prior was located nearby on a road the State widened. The store is in a small commercial complex with several other businesses across from tennis courts in New Milford, CT. It is minutes from The Green.
There is a lot of potential for a new Owner who wants to increase his/her business. A few ideas…the new Owner could start a Bike Club, sponsor group rides & events, do social media, run seminars, advertise in the local papers or on radio, offer free or paid training classes etc. none of this is currently being done now – why? The Owner wants to retire after more than 40 years owning Bike Shops.
This business is not for a beginner. The new Owner should have experience in this industry and be familiar with repairing all types of bikes. The Owner is willing to train the Buyer, but not stay with him forever. He might, however, consider working for the new Owner - part time!
The store is 1,657 s.f., the showroom is 1,137 s,f,, the shop is 364 s.f. and the office is 156 s.f. The landlord allows the business to share the attic with him. It is another 787 s.f. (not part of the lease). Total s,f, is 2,444 s.f. (all measurements are at best approximations).
This is a going concern and buying now will allow for any needed training from the Owner while it is in its off peak season (winter months of Jan thru March are the slowest months of the year). Even with Owner training, it is probably necessary for the Buyer to be experienced, mostly with repair services. At the present sales volume level, a working Owner and a part timer is all the labor that is needed. Build the volume, add the labor – but increase sales first! The business has an experienced person who is working part time. Hours are Monday thru Thursday 9:30 to 5:30, Friday 9:30 to 6:00, Saturday 9:30 to 5:00. Presently closed on Sundays. Winters hours – closed Mondays and Tuesdays.
A new Owner should be able to increase sales to +/- $350,000 with an estimated Owner’s Cash Flow of over $70,000. Currently pre-covid 2019 estimated sales for a new Owner would have been +/- $320,000 and Cash Flow of almost $60,000. This year, 2020 – pandemic year, sales have increased of the charts. They expect to finish the year with +/- $500,000 in sales.
The existing location would make a great place for riders to get together for group rides – with the business sponsoring them – just like the HD dealerships do with motorcycle riders. The Owner does no advertising and just uses word of mouth as his advertising media. Great potential for a new Owner to increase sales & profits.
The store has over 2,444 s.f. of useable space (see above). Rent is currently $1,900/month (+/- $16.29 psf) gross. Current term ends 9/30/2021 and there is an 2 year option to renew. Landlord approval is necessary.
The store’s layout includes the main showroom where bikes are lined up in the front and rear. There is a display counter and accessories are on the walls. A changing room is located on the side of the showroom. Upstairs includes the repair shop, storage and the entrance to the attic and more storage. Downstairs to a private office and a bathroom. Parking for 8 – 15 vehicles around the lot.
As you can imagine, inventory is scarce. There is +/- $30,000 available now. The Owner has +/- $140,000 in inventory slowly coming in from his main supplier that the new Owner can take advantage of. Keep this in mind, you will need more cash than the purchase price and existing inventory when you buy this business – but you’ll have inventory next spring when other retailers might not.
Assets aren’t a major factor with most retail businesses. The business has what it needs to do business – hand tools, stands etc. – see list in Flyer.
|Industry Segment:||Other Retail Stores|
|Reason for Selling:||Retirement|
|Value of Inventory Included ($):||$0|
|Value of Furniture, Fixtures, and Equipment ($):||$0|
|Real Estate Status:||Leased|
|Value of Real Estate Included ($):||$0|
|Employee/Labor Description:||1 Part Timer|
|Mgmt/Training Support Description:||Owner will assist in the transition. Might consider working for new Owner too.|
|Seller Financing Description:||Possibly, depending on price, if qualified, $100,000 down over 2 years at 6% interest|
|Proximity:||1 mile||3 miles||5 miles|
C. J. (Charlie) VlahosBlanket Real Estate CTCList Member
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