The Owner And Operator Of Snead's Dry Cleaning Company
1116 Words5 Pages
Sheldon Snead’s uncle, the owner and operator of Snead’s Dry Cleaning Company has been in business for over 30 years. Since its establishment, Sheldon’s uncle has experienced sustained success with the company and has continued to serve their customers throughout the years. The company is located in the downtown DC area, which would allow Snead’s Dry-Cleaning Company to serve both residential and commercial clients. Sheldon’s uncle is looking to retire from the business ad asked his nephew if he would like to take over the business and eventually purchase it from him out right. This financial analysis will aid Sheldon in making a sound decision as far as accepting his uncle’s proposal. Additionally, if he decides to take the deal it will…show more content… Snead’s Dry Cleaning Company is currently located in a favorable location and is zoned for commercial/residential activity. This is a strength that can prove advantageous to the company. Presently, the company has approximately 500 plus customers that are regulars at Snead 's Dry Cleaning. This is a high number of regular customers for a dry cleaning company. Additionally, the company has approximately 800 names in its computer listing. The company owns the land and building associated with the business, which is valued at $250,000. These strengths can be great contributing factors to reviving the business and making it competitive in the marketplace.
The company have a small outstanding balance on an improvements loan. The store front area is desperately in need of renovation, which can run anywhere between $15,000 -$30,000. Dry cleaning equipment located in store front, which can paint an undesirable picture to customers. No member of the Snead family is willing to work at the company, which will force Sheldon to hire on new employees and pay higher wages. The company’s dry cleaning equipment is on its last leg and has approximately 3-5 years of life left. If the company’s equipment is inoperable, Snead’s Dry, Cleaning Company will be forced to close its doors indefinitely. In this case, these weaknesses place Snead’s Dry Cleaning Company at