Fun Modern Quilting Store,Growing over 34%Getting National Recognition
not included in asking price
included in asking price
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A NEW MODERN FUN STYLE OF QUILTING STORE THAT HAS BRANDING, FRANCHISING, AND MULTIPLE LOCATION POTENTIAL
FANTASTIC EXPANSION AND BRANDING OPPORTUNITY WHICH HAS A HUGE POTENTIAL UPSIDE
Location: North Denver CO but can be located anywhere in or near Denver Metro
The trailing 12 months earnings thru September 30, 2018 were 163,432 on revenues of 660,991. The store opened in August of 2016. They have been growing at a rate of more than 34%. They believe their 2018 full year earnings will be at least 185K.
This is not a normal listing, it is a force of nature, a reinvention of an outdated industry, a potential new national brand, a potential new national franchise, and a place for kids, grandparents and everyone in between. She is a leading part of a new movement to make quilting fun, modern, and profitable again.
The sales price has been lowered to 325,000 plus her cost of merchandise/inventory. The current value of the inventory/merchandise is 312K. Included in the sales price is 70,000 worth of assets that are all less than 2 years old equipment, furniture, technology, and fixtures. They spent $50,000 just on the custom shelving and racks.
This business has is very special and very valuable to the right buyer. There is a very large upside to this business by adding locations and/or building a brand. Plus, her current customers come back over and over. She even has buses come by monthly or periodically from the same places. She has had people visit from all over the country from word of mouth including Alaska. This concept has gone from zero to over 600K in revenues in just 2 years in a small town in north Denver, Colorado.
The store is still relatively unknown. More and more people find out about it every day. Plus, there other ways to increase revenues and profits. They make their own custom quilting kits and can expand this with new designs and can sell these online. These are Fun Designs that range from various holiday patterns, to sports, to hobbies, animals, etc. Designs you won’t find anywhere else. Plus, they are getting national recognition now which allowed them to pick up Babylock, a big sewing machine company, in April which they can either sell or rent. They are also now selling spray water bottles with a custom design of theirs and their contact information. They are getting paid to advertise themselves by selling these water bottles.
No multiple can be given to this unique of a situation. Being in the store and growing this business is a labor of love. The new owner will continue building equity very quickly and may even decide to make this a national opportunity which could be worth many millions of dollars. People are looking for fun, hands on hobbies for all ages. Something fun that is not electronic.
Traditionally, retail stores are valued at a low multiple plus a negotiated value of the inventory. Based on the growth and strength of concept and its potential, I believe this company is priced fairly at 2 1/2 times the trailing 12 months earnings which are expected to continue to grow. Keep in mind that her customers are excited about this store and they drive to see it over and over. If this store was in Denver county, it would be a lot bigger and more successful. I believe this would be true in every other large market. This store has a passionate and recurring customer base with loyalty to this concept, a 22% profit margin, increasing size of local market, and are early to the market with this new wave of modern quilting ideas.
This is a “Fulfilling and Fun” Business to Own and the Owner feels confident that she can teach the buyer the business easily. She has to sell even though she is passionate about the business and its future but her kids are active duty military and have asked their Mother to spend more time with them. This is not a business that can just double or
About the Business
Contact the Seller
- Year Established:
- Number of Employees:
- Real Estate:
- Building Sq. Ft.:
- Lease Rate/Sq. Ft./Mo.:
Their location has a little over 3 years left on their lease. It is 1,700 square feet for $3,500 a month. They do not own the space but it can be purchased. They also have an adjoining space that can be expanded into or purchased also where a 16’ by 6’ long arm quilt machine could be installed which would allow customers to pay per hour to use their equipment to create their quilts. There are not a lot of these machines in Denver Metro and it would also allow larger classes for new quilters.
Her customers are excited about this store and they drive to not just see it once but over and over. If this store was in Denver county, it could be a lot bigger and more successful. I believe this would be true in every other large market. This store has a passionate and recurring customer base with loyalty to this concept, a 20% profit margin, increasing size of local market, and are early to the market with this new wave of modern quilting ideas.
Growth & Expansion:
This is not a normal listing, it is a force of nature, a reinvention of an outdated industry, a potential new national brand, a potential new national franchise, and a place for kids, grandparents and everyone in between. She is a leading part of a new movement to make quilting fun, modern, and profitable again. They have already been chosen by Better Home and Gardens Quilting Magazine called Quilt Sampler Magazine as one of North America’s 10 best Quilt Stores. This magazine has over 300,000 subscribers and that edition hits shelves in April of 2018. One of the 10 will be on the cover and she thinks they have a good chance. This would result in a big burst in both sales short and long term and create a strong demand for Franchises or other locations.
About the Sale
- Reason For Selling:
Wants to spend more time with kids who are active duty military
The owner will stay as long as needed.
- Seller Financing:
Up to 20%
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