craigslist

[gaag1436]

This one sounds so unbelievable!!! this guy is so full of bulls#%t. Who sells a bar that cheap that makes that kind of cash???!!! I like the part about "assume some bills". sound like this guy is in TROUBLE!

westland bikini bar for sale...great potential and customers...$125,000.00 cash and assume some bills....$670,000.00 in gross sales last year.....business only...property available for lease or option to purchase....serious inquiries only...NO BROKERS...please email contact info..<!-- START CLTAGS -->

[ministry]

if it were me i would call the guy just to play with him a bit. he is smoking crack to put something like that up. i want to know what the "bills" are. it sounds entertaining anyway.

[gaag1436]

if it were me i would call the guy just to play with him a bit. he is smoking crack to put something like that up. i want to know what the "bills" are. it sounds entertaining anyway.
here is the contact email adress through craigslist.
sale-24drz-2181400490@craigslist.org

[Warehouse]

The ad referred to on Craigs List clearly refers to the amount ($670,000) as gross sales. You must remember that there is a huge difference between "gross sales" and "net profit". I believe that you are thinking of this amount as the net profit or the amount that is clear profit at the end of the year. It is not.
The $670,000 does not at all reflect the cost of making that amount. It shows that $670,000 came through the door in revenue. Perhaps it cost $700,000 to bring in that amount causing the business to lose $30,000 on the bottom line.
Remember that there are fixed costs (rent, insurance, etc.) and variable costs (employees wages, cost of goods sold, etc.)
On the other hand, perhaps the expenses only amounted to $600,000 providing a $70,000 profit for the year. You cannot tell from the gross sales. All it shows to me is that it did do a significant amount of business. .....Therefore, it may be a big loser or a great opportunity. To me, it would be worth looking into, but be careful of...


SKELETONS IN THE CLOSET
Other things that you must watch out for are the "skeletons in the closet." These are hidden problems that many businesses have and which may be motivating the seller to unload. You'll have to be sort of a detective to find these, but I'll list a few here so you get the idea of what to look for:
<LI class=bodytext>credit problems with banks and/or suppliers <LI class=bodytext>personal affairs of the seller that may affect the ability to sell the business (e.g., divorce) <LI class=bodytext>historic downward business trends in the seller's particular industry <LI class=bodytext>downward business trends for this business in particular <LI class=bodytext>recent bad publicity, bad reports at the Better Business Bureau, etc. <LI class=bodytext>expiring patents or licenses <LI class=bodytext>changing franchise terms that will increase operating expenses for the business <LI class=bodytext>an impending or actual zoning change that will make business expansion difficult or impossible <LI class=bodytext>major new competition (such as a new shopping center or a new mega store in the area) being planned <LI class=bodytext>increasing difficulty or expense in getting raw materials, products, or services <LI class=bodytext>the potential non-renewal of a major sales account <LI class=bodytext>significant increases in rent to be expected (if the business space is leased) <LI class=bodytext>unapproved existing variances in violation of zoning regulations <LI class=bodytext>leases that are non-assignable or non-renewable <LI class=bodytext>legal claims, encumbrances, and liens against the business <LI class=bodytext>pending litigation against the business <LI class=bodytext>state and/or federal law violations that will require a major expense to correct <LI class=bodytext>poor management of capital assets <LI class=bodytext>obsolete machinery, overvalued inventory
<LI class=bodytext>partner and/or shareholder who may not concur with the seller's desire to sell <LI class=bodytext>unpaid taxes (income, sales, FICA) <LI class=bodytext>product obsolescence <LI class=bodytext>potential major increase in product liability insurance <LI class=bodytext>potential labor union or other employee related problems
<LI class=bodytext>inability of a buyer to replace a "superman" seller who has a unique capability for running the busines <LI class=bodytext>non-compliance with environmental and/or safety requirements <LI class=bodytext>recent suspension of a liquor license for regulation violations
need to hire a policeman to handle rowdy customers at certain times
These guidelines came from an article written by Russell L. Brown, Business Broker, Business Appraiser, MBA, and author of Strategies for Successfully Buying or Selling a Business, (http://www.businessbookpress.com/catalog/b102.htm) Preparing a Business for Sale (http://www.businessbookpress.com/catalog/b103.htm) and BizPricer Business Valuation Software (http://www.businessbookpress.com/catalog/s101.htm).

Hope this helps you.

[Grandoner]

sure helps me.. I am meeting with an owner this week to decipher some of his #'s myself and justify his price and selling of the business