IS STRONG CASH FLOW THE BEST MEDICINE FOR A BUSINESS? Ref No. RL9783F

Business Summary

Net Profit: $305,580
Price: $610,000
Industry: Manufacturing, Service

This is one of those rare opportunities that gives a new passionate owner the chance to continue the success of a business that has an excellent and unique reputation in a niche market with a very large percentage of repeat and word of mouth business. Most importantly it operates with 70% cash payments on delivery.

It could suit someone who is tired of FIFO and wants to spend more time with the family, someone passionate about the industry and drained by working for someone else, somebody that has no fear about taking on a new career or simply as an add-on to an existing business in a related industry.


Key Features

  • Established 14 years
  • 70% Cash sales!
  • Popular and growing
  • Outstanding reputation
  • Seen as the leader in the industry
  • Service and quality conscious repeat clients
  • High percentage of referrals
  • Low competition
  • Growth potential
  • Outstanding post sale support.
  • Low staff
  • Great location

Business Overview

Test Click to enlarge image

PROFITABLE NICHE MARKET - LITTLE COMPETITION

The business was founded by the vendor in 2004. Quality of service and workmanship were essential in establishing its reputation and it is now seen as the market leader. 

SELF-RENEWING ORDERS MEANS STEADY DEMAND
The market the business operates in creates a self-renewing demand for its products and services. 95% of the business current clientele situated in the metropolitan area, 4% in country areas and 1% from out-of-state. Because the market is large and demand is strong, the business’s top customer represents only 3% of total sales.

LOW STOCK LEVEL = LOW WORKING CAPITAL REQUIREMENT
Considering the per-unit value of the parts this business supplies, a stock level of just $60,000 is considered low. Carrying high values of stock will demand higher working capital requirements and unnecessary money tied up during the term of ownership. 

70% CASH SALES
Excellent cash flow business with 70% of sales paid for in cash which further minimises working capital. 

GROWTH POTENTIAL
The business has been managed very conservatively because the current owner is comfortable with its present size, and the fact that it has always been busy. That leaves scope for the new owners to grow the business, should they wish.

NO ADVERTISING REQUIRED TO GENERATE CURRENT REVENUES
The business undertakes no advertising beyond its website, which was first developed in 2005 and has not been updated since 2012. It currently generates only about three percent of total sales, but the business has not invested in any search engine optimisation to enhance its effectiveness.

GREAT AFTER SALE SUPPORT
The vendor will provide full training after settlement date for six hours per day for eight weeks without remuneration to fully train the purchaser in all day to day operations and would be happy to work part time as a consultant if the new owner felt they needed a longer period of assistance.

No point in going on and on. We have prepared a very detailed report on this business including financials for the last 3 years. Best you give me a call on 0438 925 511 or register your interest to make an appointment and discuss this opportunity further. 

Listing Brokers

Paul Susana

Paul Susana

Senior Business Broker to the Russell Lyon Team

Russell Lyon

Russell Lyon

Principal - Over 35 Years Business Sales Experience