Industry Description

Telephone Comm.

SIC

4812 ­ (05 -> 07)

Days Open

7 Days ­ 69 Hrs./Wk

Year Established

1982

Hours of Operation

M - Sat 10 - 8; Sun 11 - 8

Years Owned

22 Yrs

Full-time Employees

3 (Includes 2 Owners)

Part-time Employees

0

Other Notes

Both Owners are fully operational

Hours/wk by Owner

50 x 2 = 100

Owners Duties

Management and retail

Skills / Licenses Req¹d

None

Training Offered / Cost

3 Wks. @ 40 hrs/wk

Non-Compete Terms

5 Yrs. 5 Miles

Exec. Summary

This Business is Currently In Escrow

Lease / Bldg. Info.

2 Story Bldg.

Monthly Rent

$4,550 + $350 CAM

Lease Commenced

09/04

Deposit

Lease Expires

09/06

Term & Option

2 Yrs +

Bldg./Area Description

Busy Outdoor Mall

Square Footage

5,000

Seats, Pkg, Zoning, etc.

This business is located on an extremely busy street with a majority of walk up 

Foot traffic; High tourists density.

Reason for Sale

Owners are shifting to wholesale sales as they perceive greater opportunity

Financial Summary

Current Yr. Annual

2003 / Owner to Prove

2002 / Owner to Prove

Gross Revenue

Similar to Œ03

$687,080

$565,898

COGS

$419,119

$324,856

Rent / CAM

$54,625

$54,625

Payroll

$33,500

$33,500

Net Profit (on tax return)

$115,504 (On Return)

$111,059 (On Return)

Adjusted Net

$103,000

$75,000

Discretionary Cash

$225,000 (Estimated)

$225,000 (Estimated)

Expense Breakdown

Included in Sale

Assets

Liabilities

FF&E Included

$18,500

Lease Obligations

$0

Inventory Included

$65,000

Debt Included

$0

Other Assets Included

$0

Other Liabilities

$0

Working Capital (not incl)

n/a

Return on Sale Price

Asking Price

$400,000

Owner Financing/Terms

No

Earnest Money Dep.

$15,000

Down Payment

n/a

Opportunity Summary

Headline

Mobile Phone / Cellular / Electronics Store with high return - Won't last long !

Summary

This 22 year old mobile phone / electronics store offers walk in customers 1,500 sq. ft. of shopping space for prepaid mobile phone cards, mobile phones, pagers, and electronics such as CD and DVD players, stereos, etc.  The remaining 3,500 sq. ft. of floor space are currently being used for a parallel operation.  The new owner will be able to utilize this space at their discretion.  The firm has consistently netted a reported $110,000 per year, with annual discretionary revenues estimated over $225,000! 

Facilities / Assets

This property is located on a very busy Los Angeles street, with a very high percentage of tourist and foot traffic.  Approximately $18,500 in assets and $65,000 in inventory are included in the sale.  The business has 2 years remaining on a renewable / transferable lease.

Competition

Very High

Growth Potential

Competition in the area is high, however, this is a well established firm.  The current owners devote 1,500 of the 5,000 square foot facility to their retail operation.  There is approximately 1,500 sq. ft. that could also be utilized for retail sales offering additional and / or complimentary products, or sub-let to a tenant.

Other Stats

Monthly Activations on Approved Credit:  25 - 30

Monthly Prepaid Customers:  150 - 200

General Merchandise Sales as a percent of Total Revenues:  30% - 50% (depending on how mobile phone accessories and beepers are classified).