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There`s a Dry Cleaning business for sale for only $15,000.  Reason for it to be so cheap is that the husband is getting very sick and wife does not have time to run the shop.  Everthing in the shop is still good except the dry clean washer needs to be updated.  There`s a new law stating Perc is not legal in CA starting November 07.  It`ll cost me 40K to 65K to get a decent dry clean washer.   Location is great.  Owner says they were making 12K a month gross.  Net 4-6K.  This is without any advertising and all the business came from walk ins. 

What should I ask the broker before buying this business???  You`re help is greatly appreciated

Take a look at their tax return, water/power bill for last couple of months.

If business was that good, these thing should match.

Spend couple of hours watching customer come in and out without notify owner.

What precisely are you gonna get for your money? Is it worth what they are asking? (Consider the equipment`s depreciated value and what it`s gonna take to upgrade to meet the regs.)

At 15K gross, I`ll assume the location is leased?

At 6K/Mo. net, that`s 72K MAX for ALL of the help to divide (including paying yourself) and to give you some profit too. Sounds like you`re buying a job. That`s OK... if that`s what you want. I`d say that if the real numbers and potential look OK, go for it. Do get an accountant`s review and legal advice before you move on it though.

Those type of Businesses are Bottom line businesses.

Look at Water bills and also ask a water expert how you can measure and calculate water flow and water efficiency. Tax returns can be falsified, be warned!!

What`s the average cost of hiring a CPA to valuate the business like this? 

...And don`t believe any stories about "off the books" cash... If they`ll lie to the feds, what makes you think they`ll tell you the truth?

Believe ONLY the hard facts as they are reported officially (1040`s). Run a complete profitability audit. Maybe you`ll find the holes they aren`t filling that you can easily exploit...

Insure that ALL taxes owed are fully paid-up too!

As the owner of a dry cleaning business, you need help from thousands of people who get endorsed, look good for examination and look nicely compared to their peers. Forge new contacts, help companies depict professional images and make people at a wedding look sharp.

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As a buyer of service from these sites, I have one question for you, which I think most buyers will have in their mind.

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