In 2014, nearly 17 of every 100 U.S. adults with 18 years or older currently smoked cigarettes, around 16.8%. This means an estimated 40 million adults in the United States were smokers that year, according to Centers of Disease Control and Prevention.
It’s not a surprise that the number of smokers is decreasing year by year, not only in the United States but all over the world. Therefore, cigarettes, cigar or smoke shops gross incomes have obviously been affected.
However, despite the growing health concerns related to smoking, many people in the United States still choose to smoke and consume other tobacco products. So yet it is possible to say that running a cigarette, cigar or smoke shop can be a profitable business, once smokers usually prefer to go to a store like this in order to buy products they want.
If you have decided to sell your cigarette, cigar or smoke shop, you will have to keep all of that in mind: the current smoking scenario in the United States and also the number of remaining smokers that still consume tobacco products. In fact, 16% of the population is a lot of people.
What is your Smoke Shop worth?
But the first thing you have to do before you start the sale process is finding out what your business is worth. In order to do that, you have to follow some specific metrics, such as:
- 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?
Gather all finance information you can find related to your business incomes. Then, develop a report explaining how competition works around you and in which way competitors harm your business.
What makes a Smoke Shop business worth more?
After doing that, you have to state all the differentials in your business that can make it worth more, such diversified products, web presence, modern decoration and up-to-date equipments and machinery.
But if you have any questions there are some specific metrics you can follow. Take a look:
- 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 Cigarettes,business sell for?
Since 2005, there has been very few smoke shops sold in the United States: only 10. It shows how unpopular or at least undesirable this industry is.
It’s not a coincidence that the number of smokers is getting smaller every year, and this fact may be discouraging business people that once have been interested in buying a smoke shop.
As total sales are too short, profit and average price could not be different as well.
What is the most frequent deal size?
Most frequent deal size is $100k, which, in this case, will probably be the price you will get if you sell your smoke shop right now.
In the past ten years, only three smoke shops were sold for more than $250k, and all of them were negotiated for less than $500k.
Is the Smoke Shop market getting bigger?
People are quitting smoking. Cigarette, cigar and smoke shops are getting more and more unpopular. So maybe it’s time to sell your business while there’s still a large target public interested in the products your store sells.
Experts predicts that, in the future, smoke shops owners will have to adapt their businesses to a new and still unknown scenario in order to keep the business running.
Are bigger businesses worth more?
Yes. Although there have been few sales in the past ten years, which don’t provide us a great deal of statistics, the classical rule is applicable in this case: the bigger the business the higher will be the profit and the multiple rate.
What states have the most Cigarettes business 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 Arizona, California, Massachusetts, Maryland, Nevada and Texas you may get a lot more offers than if you are in other states. 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 Cigarettes, Cigar or Smoke Shop, 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 smoking industry it may likely be a person who already had a store in the field.
The number of smokers is decreasing year by year, not only in the United States but all over the world. Therefore, cigarettes, cigar and smoke shops have obviously been affected. In the past ten years, there have been only 10 sales in this industry, which shows how unpopular and undesirable it is.
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.