Best Modern Quilting Concept Store, Big Equity Growth Potential

Contact Seller
REINVENTION OF AN OUTDATED INDUSTRY, Fun and Growing
Asking Price:
$695,000

Gross Revenue:
$456,000
Cash Flow:
$78,000
EBITDA:
$78,000
Inventory:
$290,000
not included in asking price

FF&E:
$70,000
included in asking price

Share this business:

Business Description

A NEW MODERN FUN STYLE OF QUILTING STORE THAT HAS BRANDING, FRANCHISING, AND MULTIPLE LOCATION POTENTIAL

Location: Denver CO but can be located anywhere in or near Denver Metro

2017’s Earnings were 78,830 on 456,290 in Revenues. The store opened in August of 2016. They have been growing at a monthly compounding rate of 30% a month. The trailing 12 months through February of 2018 will already be substantially better than Calendar Year 2017.

This is not a normal listing, it is a force of nature, a reinvention of an outdated industry, a potential new national brand, a potential new national franchise, and a place for kids, grandparents and everyone in between.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.

She estimates that the current value of the inventory/merchandise is $290K. Included in the sales price is $70,000 worth of assets that are all less than 1 ½ year 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 $500K in just over a year.

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.

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.

I believe this company is fairly valued at 5 times its normally adjusted earnings for many reasons: 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.

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 triple. This is a rare opportunity to create a large amount of future equity while loving what you do. This would be great for a family who has an operator and a business/salesperson to help expand this.
________________________________________________________________

About the Business

Year Established:
2016
Number of Employees:
9
Relocatable:
Yes
Real Estate:
Leased
Building Sq. Ft.:
1,700
Lease Rate/Sq. Ft./Mo.:
$3,500.00
Facilities:
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.
Market Outlook/
Competition:
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.
Contact the Seller

About the Sale

Reason For Selling:
Wants to spend more time with kids who are active duty military
Training/Support:
The owner will stay as long as needed.
Seller Financing:
Up to 20%

Listing Info

ID:
1464902
Ad Detail Views:
84

Contact the Seller
Please confirm you're not a robot
Contact the Seller
Business Listed by

Jeff Eisnaugle

Business Broker Colorado

 Show Phone Number

View My Active Listings
U.S. Census Data for Adams, Arapahoe, Denver and Jefferson Counties, CO
Age

Gender

Ethnicity

Source: Decennial Census (2010), United States Census Bureau.

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.

U.S. Community Survey Data for Adams, Arapahoe, Denver and Jefferson Counties, CO
Income

Education

Source: American Community Survey (2010-2014), United States Census Bureau.

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.


Similar Listings


Report an Issue The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms & Conditions.