lanshop takeover initial capital outlay

Supersian

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Hi guys, saw an ad from on lanshop takeover at dhoby ghaut asking for <50k excluding inventory, fixtures etc. just checking if anyone knows roughly the total cost based on the below ad description ? Thanks.


24 Hours Internet Cafe/Lanshop (网吧) For Taking Over! Price Negotiable!
Central Area, Singapore
Asking Price : Under SGD50K

Revenue: SGD10K - 20K

Cash Flow: Under SGD5K

Payable: Not Disclosed***

Established: 2013

Gross Profit: Under SGD5K

Inventory: Not Disclosed***

Receivable: Not Disclosed***

Owner Role: Full Time

Net Profit: Under SGD5K

Liability: Not Disclosed***

FFE: Not Disclosed***

Staff: 5

* Revenue, Gross Profit, Net Profit, Cash Flow are based on Monthly average
***NOT included in asking price
Reason To Sell
Owner focusing on F&B business overseas
Business Description
Popular cybercafe with a unique decor that has been established for 7 years with 3000+ registered members and even more walk-in customers!


- Prime location in Dhoby Ghaut, being in the cybercafe hub

- Partnerships with several gaming companies that holds monthly events with full turn-ups

- Existing staffs that are hardworking and are flexible with long working hours

- IT equipments are only 2 years old and can handle the latest games without any issues



We have even more upcoming partnerships that will boost sales and can only be revealed/discussed face-to-face as these are strategic advantages over other competitors in the area.



If you are new to this industry, you do not have to worry as our management will handover everything smoothly and guide you through the processes. And since the business is currently still operating, there will not be any disruption during the handover.



Serious buyers only. It's ideal if we can meet up in-person to discuss.

Welcomed to contact me any time of the day.

Business Operations
Business Hour:
24 Hours
Staff:
3 Local, 2 Part Time
Property Information
Premise Status:
Rent
Premise Size:
1000sqft
Rental Fee:
SGD8,000
Rental Deposit(SGD):
SGD21,600 (NOT included in selling price)
Lease Term:
1 more year to go
 

Mecisteus

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Net profit under 5k means can go negative? :s13:

If revenue is 10k and rent is $8k, the business is definitely losing money. You have not included utilities and manpower costs.

If salary of 1 staff is $1.8k and utilities is $500 (my guess), you need revenue of 14k to breakeven assuming you are employing 3 staff.
 

Supersian

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tbh at times i wonder how lan shop at that area can survive with $2/hr. i assume when take over one needs to fork out the takeover fee + rental deposits + inventory and stuffs?
 

SCG8866T

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Ppl still play lan? Thats so circa 1999. I thought only popular during my time. Now online gaming is so advance can even play amg friends using iphone...
 

microtek

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I think the only people that play LAN now are the competitive gamers training for competitions? Otherwise I don't think anybody plays LAN anymore.
 
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