Brief:
Talk about opportunity! Here’s a great business with fantastic profit margins and huge growth potential that performs well in any economy. It looks and feels like a high-end antique and jewelry store, and is located in a high-traffic, upscale shopping district. If you’re unfamiliar with the pawn business, put any preconceptions aside. It’s safe and tightly regulated, provides a valuable service to its patrons, and yields multiple sources of revenue -- Pawn loan interest and fees with an amazing 75% annual return. Precious metal buys featuring 300% returns and easy, reliable liquidation. And retail sales of unclaimed pawns and “off the street” purchases with mark-ups that would make most retailers pale. Business operations are very professional with loan customers receiving a high level of service and retail customers finding a quality selection at good prices. And consider the growth potential. The Seller is retiring after ten years, and all this time he’s deliberately kept the business small; limited to jewelry, watches, and precious metals. A new owner could easily expand into the usual range of collateral and increase loan income by two or three times. The extra revenue would easily offset increased advertising (which the seller has also kept limited), and store hours could be increased from five to seven days a week. This is the only pawn shop in a 25-mile radius, as licenses are issued on a limited basis. It’s well established, with an immaculate reputation in the community. And it has a great lease, below current market rates, with a friendly landlord. A new owner will have to qualify for their own pawn license. (Licenses are non-transferable). Requirements include a full background check, cash (or equivalent) reserves of $100,000 (after purchase of business) or a bond, and a certified financial statement.