To continue our blog on “Things to Consider When Buying a Dry Cleaner Business,” we are adding the following financial questions to ask to be sure you are making the most informed possible decision about your purchase.
You may be leasing the location of your dry cleaning business, but you want to determine whether the business owner owns the space. If he or she owns the space, ask if they intend to sell the real estate in the future. If you are leasing the space, speak with the landlord and review the agreement to determine whether or not the lease is transferable.
Between presses, form finishers, and toppers, the cost of dry cleaning equipment like presses, form finishers, and toppers adds up quickly. By talking with the existing owner, you can determine whether or not the dry cleaning equipment is included in the sale of the business. If the equipment is not included, you will also be making a sizable investment in purchasing the essential equipment for your business.
When you are serious about buying a dry cleaning business, you need to request to review pertinent financial documents, contracts, taxes, and utility bills, to understand the average operating expenses of the business.
It’s fair game for you to ask the existing owner how he or she arrived at the asking price. Was it chosen by a professional valuation service? If so, it’s likely an accurate reflection of the value of the business.
When you are considering getting becoming the owner of a dry cleaner’s business, contact Fabricare Systems, LLC to learn about the best dry cleaning software available on today’s market. Our software covers every aspect of the business for ideal effectiveness and efficiency.