Deal Alert: Established Frozen Treat Business

📍 Location: [Undisclosed]
💰 Asking Price: $929K
📊 Revenue: $365K (2023)
💼 Net Profit: $142K (2023)

🌟 Why This Business is Great:

Steady Revenue Growth:

This frozen treat business has demonstrated consistent revenue growth over the past few years. From $279K in 2020 to a projected $650K+ in 2024, the numbers speak for themselves. This upward trend showcases the business's ability to thrive even in changing market conditions, making it a reliable investment.

High-Profit Margins:

Despite relatively modest expenses, this business has consistently delivered strong net profits, especially impressive in 2022 and 2024. With a net profit of $159K in 2022 and already $152K by mid-2024, this business stands out for its profitability. The lean expense structure, including a modest owner's salary and manageable rent, contributes to these healthy margins.

Strong Asset Base:

Included in the asking price is $150K worth of equipment, essential for the operation, and an additional $4.5K in inventory. These assets not only enhance the operational capabilities of the business but also provide significant value, reducing the need for immediate reinvestment and ensuring a seamless transition for the new owner.

🚀 Growth Potential:

Expansion Opportunities:

The real excitement lies in the untapped potential for growth. The business is perfectly poised for expansion, especially with the introduction of a mobile unit and potential partnerships with theme parks. These avenues could significantly increase both customer base and revenue. Moreover, with the right marketing strategies, there’s ample room to amplify the brand’s presence and customer engagement.

Scalability:

This business model is highly scalable. The introduction of additional locations or franchising could be explored to maximize the brand’s reach and profitability. The frozen treat sector, particularly with a niche and quality-focused approach, is ripe for such expansion, especially in areas with high foot traffic like amusement parks or festivals.

🔍 My Analysis: This frozen treat business is a great investment opportunity with strong, steady revenue growth and impressive profitability. The business has a lean expense structure, valuable assets, and consistent earnings, making it financially solid. The potential for growth is significant, especially with opportunities to expand into mobile units and theme parks. The asking price is reasonable given the business's performance and assets, offering a sound investment for both seasoned entrepreneurs and newcomers. Overall, it’s a well-rounded opportunity with room for growth and a solid foundation to build upon.

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