Purchasing a trendy B&M business...

[Johnny boy]

I am looking at a business for sale.

It is in the entertainment space. A selfie museum. Metro area, downtown close to everything.

Should make about 150-170k this year on the low end.

420k in revenue
250k in expenses

The rent is 100k a year as part of those expenses.

Right now it is offered at 550k. I would think 350k is fair and go up from there to 400 something.

It is an owner absentee business. It takes about 3-4 hours a week to run since the employees all handle everything and there’s few problems, not really inventory, nothing spoils, etc. It’s rooms to take pictures in and someone up front to take their money and handle appointments.

Good/bad news: it made well over 500k in profit in 2021 on 900k in revenue. Which is good because it makes money, but bad because revenues are down.

It’s marketed decently well online. There’s no competition nearby. It’s not a commodity and it has a natural viral, social media angle that lends itself well for marketing.

Interested to hear your thoughts.

 

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[SEBASTlAN]

The two in my town both shut down recently. Anecdotal, but enough for me to stay away from it.

 

[machinistguy]

$500k in profit, $900k in revenue... in 2021? What happened to 2022 and 2023? Is that where you got the $420k revenue number? Then it's going to do $170k this year? Which is a loss of $80k. The business isn't worth $350k, its worth less than zero because it's unprofitable and declining.

3-4hrs/week if you're just doing maintenance, but 40hrs if you're trying to bring it back to life.

I'm curious why you're even considering this? Sounds like the owner is trying to jump ship because he sees no hope for it, so what do you even see in it?