Video and Game Rentals Business
Business Description
Growth opportunity exists for an individual interested in working on a "turn key" business and not in the business. The current owner has been in operation for 7 years at one location and 4 years at another location and has developed a secure customer base in two growing communities, allowing for stable and growing revenues and profitablity.
- Current owner works 2 days per week "in" the business, one day at each location.
- Key staff currently in place.
- Training to be provided.
Seller would consider selling locations individually.
I Am Interested
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General Information
UPSIDE Opportunities for Growth:
- Expand offerings to the growing BlueRay market.
- Addition of new age gaming systems (Wii Fit)
- Expand/Improve Adult Segment and Offerings
- Addition of other Revenue generating products/services
- New and Creative Membership and Promotional Ideas (email marketing, video game tournaments, special trade-in offers, return policies, rental incentives, FREE Rentals on non-new release)
- Strategic Partnerships with Repair/Service/Wholesale companies for players/televisions/electronic devices, etc. Leverage clientelle's need/want for entertainment.
Financial Information
3 year average Sales = $336,000. Sales are broken down as 60% from video, 30% from Gaming, and 10% other.
3 year average SDE (Seller's Discretionary Earnings) = $142,600
** SDE is before Video/Game purchase requirements of approximately $60,000 per year.
Real Estate / Lease
Both locations are leased locations, with expiries coming due in March/April. Excellent opportunity to renegotiate favorable terms.
- Location 1 is approximately 2200 sft, $2750/month
- Location 2 is approximately 1800 sft, $1350/month + CAM of $897/month
