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Exploring a $130K Locksmith Business for Sale

Hey there, locksmith pros! We're diving into another fascinating locksmithing business opportunity today. This time, it's a mobile locksmith business in the bustling Bay Area with a solid reputation and a lot to offer. So, let's jump right in and explore what makes this $130K investment worth considering.

Overview of the Business

This mobile locksmith business has been around since 2004 and is currently on its second owner. It's well-established, with a great list of clients, a fully-equipped van, and a strong phone number that's synonymous with trust and reliability in the Bay Area. Here’s a quick breakdown:

  • Location: Bay Area, California
  • Services: Residential, commercial, and automotive locksmith services
  • Assets Included: Tools, inventory, van, and an established phone number
  • Business Structure: S-Corp
  • Training: Up to 3 months of hands-on training with ongoing phone support
  • Reason for Selling: Owner is moving out of state
  • Asking Price: $130,000
  • Cash Flow: $125,000 annually

Why This Business is Attractive

  1. Lucrative Market:

    • Security concerns are at an all-time high, increasing the demand for reliable locksmith services.
    • The Bay Area is a densely populated region with numerous potential customers.
  2. Established Brand:

    • Operating since 2004, the business has a proven track record.
    • The brand is recognized for trust, quality, and innovation.
  3. Growth Potential:

    • The business has room to expand, whether by increasing the number of employees or extending services to neighboring cities.
  4. Comprehensive Training:

    • The current owner will provide up to 3 months of hands-on training and be available for phone consultations, ensuring a smooth transition.

Key Questions and Considerations

  • Employee Count: The business currently operates with just one employee. If you plan to expand, consider the costs of hiring additional staff and acquiring more vehicles.
  • Equipment Value: The 2019 Dodge van and multiple key machines are valued at around $75,000. Ensure these assets are in good condition and included in the purchase.
  • Inventory Negotiations: The business comes with $25,000 worth of inventory, but this is not included in the asking price. This could be a point of negotiation.
  • Customer Retention: Transitioning to a new owner might result in some customer loss. It's essential to maintain relationships and provide consistent service.

Financials and Sales Insights

Understanding the financials is crucial. The business has a cash flow of $125,000, but knowing the total sales would provide more clarity on its profitability and operational costs.

  • Operating Capital: Ensure you have enough operating capital for expenses like gas, repairs, and insurance.
  • Customer Payment Terms: Be prepared for possible delays in customer payments, which can impact cash flow.

Final Thoughts

If you're considering expanding your locksmith business or entering the Bay Area market, this opportunity seems promising. With a strong foundation, solid assets, and growth potential, it could be a great investment. Remember, the asking price is $130,000, but everything is negotiable, including the inventory.

For those interested, you can find this listing on BizBuySell.com. If you have any thoughts or questions, drop them in the comments below. And as always, happy locksmithing!

Why This Business is Attractive:

  • Lucrative market with high demand for security services
  • Established brand since 2004
  • Significant growth potential
  • Comprehensive training provided by the current owner

Key Questions and Considerations:

  • How many employees does the business have?
  • What is the value and condition of the included equipment?
  • Is the $25,000 inventory negotiable?
  • How can you ensure customer retention during the transition?

Financials and Sales Insights:

  • What is the total sales revenue of the business?
  • Do you have enough operating capital for initial expenses?
  • Are there any concerns with customer payment terms?

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