Modern Quilting Store,Growing Fast at 34%,214K Earn,Big Equity Build
Up in Revenues, Up in Earnings. A Must See Business!
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The trailing 12 months revenues are up to 954,181 with the earnings now up to 214,156 which is significantly higher than 2018’s 726K in revenue and 156K in earnings. There was a quilting store that went out of business recently that has helped to increase their growth rate significantly. This company is now selling at less than 1 ½ times the earnings plus inventory and less than 3 times the earnings including the inventory. This is very inexpensive for a company growing this quickly.
The owner have leased their location since August 2016 and then recently bought their location in December 2018 plus the empty space next door. This resulted in them doubling the space they were in at the same time.
MODERN QUILTING CONCEPT STORE
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 revenues are up to 954,181 with the earnings now up to 214,156. 2018 had earnings of 157K on revenues of 726K. The store opened in August of 2016. They have been growing at a rate of more than 34%. She believes her 2019 full year earnings will be at least 200K based on their growth rate, full inventory as of Jan 1 2019(no longer has to add to it), and because the doubling of the size of the store will allow new sources of revenues. When I received the year end PL and was surprised the revenues were up 34% which always results in the bottom line being up more than 34% and it wasn’t. The problem was the big increase in inventory during 2018 especially in December 2018 because of the doubling of the space. She did the first total inventory count since the store opened in early 2019 and came up with $304,506 and her tax return the year before indicated a total inventory of $241,743. She expenses inventory when they buy it instead of when they sell it therefore any increase of the inventory levels year over year should be added to their bottom line at their cost of that inventory.
This is not a normal listing, it is a force of nature, a reinvention of an outdated industry, a potential new national brand, a potential new national franchise, and a place for kids, grandparents and everyone in between.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 305K. Included in the sales price is more than 80,000 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 954K in revenues in just 2 1/2 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 sp
About the Business
Contact the Seller
- Denver, Colorado
- Year Established:
- Number of Employees:
- Real Estate:
- Building Sq. Ft.:
- $3,485.00 Per Month
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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