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#Business ID: 14645

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Bicycle Store with Property

Business Location: Suburbs, Chicago, Illinois, United States

Asking Price: $ 985,000 Revenue: $ 776,859 Cash Flow: $ 129,027

[Furniture / Fixtures included]
[Real Estate Included]

Business Summary

The current owners have been in the business since 1990, and after 22 years, have decided to retire. This is a
full-service, 6,273 sq ft retail store in the heart of a busy suburban area. They sell & repair a wide range of
bicycles such as kids bikes, mountain bikes, cruisers, BMX bikes, hybrid bikes & road bikes. They also sell
related apparel and accessories. They have very consistent sales. Another important feature of this bicycle
shop is that they have a repair center right in the middle of the showroom. They have factory trained technicians
that do everything from repairs & assembly to tune-ups & custom bike fittings. There's no need to go anywhere
else.

This bicycle shop has a long history in the community and because the property is owned & not rented, you
don't have to worry about your rent increasing or your landlord not renewing the lease. Another great feature of
this business is its location. They are located on a very busy road with great visibility & over 24,500 cars driving
by the front door each day (according to the Illinois Department of Transportation).

Another great feature of this bicycle shop is the fantastic showroom. With 6,273 sq ft, there's plenty of room to
display all the current models & plenty of room for customers to browse the massive display of bicycles,
accessories & apparel. They also have a large storage area in the back of the store and another large storage
area upstairs. This allows them to constantly update & switch out inventory so customers don't see the same
products on display all the time. The display area also has very high ceilings, so bicycles are not only
showcased on the floors; they also hang from the ceilings. This is a true bicyclist's paradise.

Property Details

Size:

The lot size is 20,016 sq ft. The building is 6,273 SF. It\'s a 2-story commercial building with about 26 parking spaces.

Years Established:

1990

Property Type:

Real

FF&E:

$ 75,000

Inventory Value:

$ 240,000

Real Estate Value:

$ 810,000

Other Business Details

Competition:

A new owner could increase sales by focusing on the website & search engine optimization. I think they would get quite a bit more internet/website traffic if they displayed their current inventory directly on their website, along with sale items, coupons & reviews. Website optimization would help them sort high in internet searches. Right now, they don't sort very high at all. Updating the website & improving the search engine optimization are both easy fixes & would significantly help their internet sales & traffic.

Expansion Potential:

Direct mail, e-mail blasts, group rides and in-store clinics are additional areas that would add greatly to the business volume. Another area of opportunity is advertising. If you look at their advertising expenses each year compared to their gross sales, you'll see that they are only spending about 1% of sales on advertising. In 2009, they spent a whopping 1.8% of gross sales on advertising. This was their highest percentage spent on marketing. Most bicycle shops spend at least 3% of sales on advertising.

Business Operation Details

Employees:

10

Miscellaneous Details

Financing Available:

Yes
Owner might consider a small amount of financing with qualified buyer.

Reason For Selling:

Retirement.

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