Profitable Clothing Store Established Over 20 Years

Highlights of Business
• Business is well established (Over 20 years)
• Substantial base of regular customers
• Website is a fully functioning ecommerce website
• Substantial upside potential
• Clean books and records
• Seller will train
• Business qualifies for SBA financing, which means lower down payment and longer terms
• Seller will sign a non-compete agreement
History
The business was established over 20 years ago by the current owner. She is now anxious to retire, as her husband has recently sold his business and retired. She has priced the business substantially less than its 2025 valuation.

Operations
The business is well-established and offers name-brand and designer items for women, men, and children.

A selection of items in the store is shown on the business’ website and available for purchase through the website.

Significance of a Well-Established Business
A company that has been in business for many years has customers who are in the habit of patronizing it, and people are reluctant to change their shopping habits.

In 2024 there were 11,259 individual sales for a total of 25,966 items sold.

Down Payment: $8,010

Total Sales: $431,384

Cash Flow: $53,676

EBIT: N/A

EBITDA: N/A

Accounts Receivable: N/A

Accounts Receivable Included: No

FFE: $30,000

FFE Included: Yes

Inventory: $19,000

Inventory Included: Yes

Year Established: 2003

Lender Pre-Qualified: No

Non-Owner Payroll: N/A

Employees: 3

Absentee Owner: No

Real Estate: N/A

Real Estate Included: No

Monthly Rent: $2,345

Type of Location: Shopping center just off busiest street in town

Square Footage: 3000

Franchise: No

Relocatable: No

Facilities Information:

The business operates from an approximately 3,000 sf retail space just off the busiest street in town. In addition it rents a 10’x10’ storage unit, and utilizes approximately 150 sf of space for storage in a building at sellers home.
The business could be operated anywhere in the same town, but the seller believes its current location is ideal. A new street will be built nearby in the next 3 years which will drive even more traffic by the store. The seller says the landlord is planning on building more storefronts in the shopping center for when the new street is completed.

Reason For Sale:

Retirement

Training & Support:

The seller will provide 4 weeks of dedicated training at no additional cost. In addition, the seller would be willing to be available for phone conversation for a reasonable period after training.

Competition:

The business has a normal amount of competition in the area, but the seller says the quality of the merchandise in her store is substantially higher than any of its competitors.

Potential Growth:

The seller says there are several ways the business could be grown, including selling more through the website, which is a fully functioning e-commerce platform.

Financing/Terms:

This business qualifies for SBA financing, since it has good books and records, and is priced very attractively for its Discretionary Earnings.

The seller estimates that $12,000 would be needed for working capital. Buyers should consult their accountant if necessary, to determine if that is an appropriate amount of working capital for this business. Most lenders would be happy to loan that much or more in working capital for this business, as the cash flow from the business would fully support it.

Down payment for the business would be approximately $8,010, assuming an SBA loan, sales price of the business of $64,000, $12,000 borrowed for working capital, and loan expenses added to the SBA loan of $4,100.

The advantages of a business being able to be financed with an SBA-guaranteed loan are:

1) A lower down payment than a seller would require were they providing financing (typically only 10% of the Project Cost is required by SBA rules);
2) A much longer term than a seller would offer (typically 10 years per SBA rules); and
3) A lower interest rate than a seller would typically offer (currently around 9.5%).

Often a conventional loan is not a possibility in financing the purchase of a business, because the cash flow of most successful businesses is worth more than the value of the business’ assets, so there is insufficient collateral to secure a conventional loan. SBA loans are based on the cash flow of the business and are less dependent on the amount of collateral available.