Almost everyone has a cellphone and access to the internet nowadays. So we can assume that from time to time people usually change their cell phones or need wireless repair. The fact is: there is a very strong market among cell phones and wireless technology and there is also a lot of people interested in buying a store in this business.
You have to keep that in mind before setting your asking price: you own a very popular business and, if you know how to operate it and especially how to sell it and make it look even more valuable, it’s very likely you will take a very good profit from the sale.
In the next few topics, you will learn exactly how to do it and sell your cellular phone or wireless store for the best price.
What is your Cellular Phone or Wireless Store worth?
Before setting your asking price, you need to know what makes your cell phone and wireless store valuable. To do that, gather all finance information from the past years and compile it into a major and complete report to provide potential buyers with arguments that justify your price.
Make sure you explain in this same report why your business is different from the others and why they should invest in yours.
Take a look at the metrics below:
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Cellular Store worth more?
There are some aspects different from the metrics above that must be considered before you set your asking price. These aspects make your cell phone and wireless store worth even more and help to convince potential buyers to buy it.
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Cellular Store sell for?
There has been 75 cell phone and wireless stores sales since 2005 in the United States. If you look at the chart, average sales price is up to $900k, which demonstrate how profitable this market can be.
Average multiple is a little bit less than 2, but it’s enough to give cell phone and wireless stores owners a huge profit.
What is the most frequent deal size?
Most frequent deal size, however, is smaller than average sales price: $550k, but still a very good number.
It means that if you decide to sell your cell phone and wireless store right now, you will probably get $550k from the sale, but there have been a lot of millionaire sales in the past decade as well, what explains the so high average sales price.
Is the Cellular Store market getting bigger?
There is no data for 2015 sales, so we will focus in the previous years, although in 2014 there have been very few sales as well (only two, according to our research).
Best year for cell phone and wireless stores was 2007 by far, and it has never been repeated again. So it’s not possible to say that this market is getting bigger, but it’s right to assume that it is living a very good moment and you will certainly profit a lot from your business sale.
Are bigger businesses worth more?
Yes, usually the bigger the cell phone and wireless store the higher will be the profit you will get from the sale. It’s not different among this market, with only few exceptions.
What states have the most deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in California or Maryland, you may get a lot more offers than if you are in Mississippi or South Dakota. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Cellular Phone or Wireless Store, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the cellular phone and wireless stores industry it may likely be a person who already had a store in the field.
Despite being a famous business not only in the United States but in all over the world, there have been very few cell phone and wireless stores sales in the past decade. However, as a profitable business it is, average sales price was close to $1 million in this same period.
If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts.