Business for Sale, Would I Buy It? | Tropical Plant Retailer

Here is the next the latest and greatest “Would I Buy This Business?” so for today, we have a thriving multi-location tropical plant and ceramics retailer. Okay, so selling plants and the pots they go in, multiple retail locations. The asking price is 780,000. Gross revenue [1,376,921]. Cash flow [282,096]. So the price seems about right. But from multi-location 1.3 million doesn’t sound like a lot, so let’s see if there’s more to it. Founded in 2015. Specializes in tropical plants, ceramics, and plant care products. Multiple locations across Philadelphia and Ohio. Philadelphia is a city, and Ohio is a state. But I’m being picky there I guess. Minimalist approach to operations. Each shop is staffed by dedicated managers who provide exceptional service. Robust systems in place. Streamline supply chain. The business operates efficiently. 13,000 loyal members. Based in Licking County Ohio. Okay. It – hmm… doesn’t say how many locations they have but if the retail locations, each one has rent to pay, needs shelves and display areas, and a cash register, and rent, and insurance, and utilities, and staff, and inventory to display. So it says across Philadelphia and Ohio. I don’t know. I mean, I kind of take that to mean at least three, otherwise you would say two. I can’t imagine it more than 3 just because there wouldn’t be any profit left. I don’t know. It doesn’t say anything about having an online outlet. I would think that would be the first most immediate concern is to get online sales started. At least to the customers in your area who buy from you once, follow up, and sell them more online without having them  come back to the store. The profit margin even with retail locations is okay. So I guess my interest in this one would be really gauging how unique the product line is, right? Are these not plants you can just go and get at Home Depot or Lowe’s? And is there a customer base that’s looking for these specific kinds of plants? Do you need to stay with retail? How much of an online business could you turn this into? Retail plus online is a good combination. And what does it take to set up a new retail location? Those are kind of all the questions that would jump to mind on this. If there is a unique niche here that you can jump into, and you could grow the sales to 3 or 4 million, and keep the margin the same, you know, end up with $1 million profit. Running those stores with online and retail. Yeah, that could be a pretty solid business. I mean certainly the price isn’t bad. Says it doesn’t include inventory. Maybe you could negotiate that in. Yeah, it could be interesting for somebody who’s got an interest in this space. I don’t have an interest in tropical plants so it wouldn’t be something I’d be super excited about. But if that’s an area that you have some interest in, this business could make sense. I just would have a bunch of questions.

More about this series, CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses up for sale and see if Matt would be interested in buying them.