Opportunities
Midwest Sip & Paint Studio With 3 Non-Franchise Locations
Sold
Specifications
This non-franchise paint & sip studio has 2 locations in Iowa and 1 in South Dakota, each with a full-time Manager and several part-time Event Coordinators available for assistance with events. Offering public, private, corporate and mobile event services, over 80 paint & sips were held between all 3 locations in October. Since each location is fully staffed, the seller oversees operations and focuses on the big picture.
In-studio and mobile activities are led by local artists, who are art students, art teachers, and talented community artists. Many of them have come from events they have attended at the studios, or have approached the business to offer their services. Assisting attendees are Event Coordinators, who check people in, refill paint, and help to create a fun atmosphere. Depending on the number of attendees, between 1 and 3 Event Coordinators will be present.
All managers are full-time, and are responsible for running each studio’s calendar, setting up events, handling inventory and ordering supplies. As the studios are only open during events, the Managers are able to partially work from home. However, a buyer looking to increase profits should consider running one of the studios as an Owner/Operator.
Growth also exists in offering more corporate and mobile events. The seller is currently working on establishing a partnership with a corporate team building operation to boost the corporate event numbers. This is a great way to source clients for private functions.
Business Highlights
- Location and Service Area: 2 locations in IA and 1 in SD, plus mobile units
- Events:
- October 2017 – 84 events between all 3 locations.
- All studio events are BYOB.
- 1,200+ in-studio and mobile events per year.
- Services: Public & private paint & sip events, corporate events, mobile events (through partnerships with local businesses)
- Building:
- Location 1 (northwestern IA) – 2,500 sq. ft. (seats 60+)
- Location 2 (central IA) – 1,600 sq. ft. (seats 60)
- Location 3 (southeastern SD) – 1,250 sq. ft. (seats 52)
- Reason for Selling: Retirement
- Employees: 3 FT Managers, 25 PT Artists & Event Coordinators as needed (between 1 – 3 will work an event based on number of attendees).
- Hours: Vary – dependent on public and private events
- Seller Training Period: 90 days
- Growth Opportunities: More corporate and mobile events.
- Current Owner’s Responsibilities: Payroll and employee management. New owner could be a manager, which would add $30,000+ in profit.
- Profit Opportunity: Easily obtain liquor license
Financial Highlights
- List Price: $109,000
- 2017 Gross Sales: $456,264
- 2017 Cash Flow: $77,704
- Assets Included in Purchase
- Equipment: $9,000 in studio furniture, fixtures and re-creatable art gallery of over 800 paintings
- Intangible Assets: Websites for each location and parent site, social media accounts, email lists, app, calendars, reservation system, trademarked name, vendor relationships and contracts, name recognition and community partnerships.
- Inventory: $23,671 in canvases, paint, and paintbrushes
*amounts may vary
Events
- Public, private, corporate, and mobile paint & sip events
- All studio events are BYOB (bring your own beverage)
- Studios are not required by state law to have liquor licensing, but one studio is subject to a city ordinance that requires one
- This studio has liquor licensing, but is still BYOB
- Wine, beer, wine cooler and soft drinks are allowed. NO hard liquor.
- Mobile events are done within a 100-mile radius of each studio in partnership with local establishments
- Held in bars, restaurants, churches, fire halls, community centers, and any business large enough to hold a paint & sip event
- There are 3 mobile teams that travel to mobile events, and keep supplies in their homes
- Company does 1,200+ in-studio and mobile events each year
- Events are generally 2 hours in length
- Studio has a gallery of over 700 paintings owned and created by the company
Employees
- 3 FT Managers, one at each location
- Handle calendars, answer client inquiries, set up events, handle inventory and order supplies
- 25 PT Artists & Event Coordinators
- Coordinators typically cover 2 – 3 events in a pay period, or 4 – 5 per month
- Check attendees in at events, refill paint supplies, create a fun environment for a great experience
- For events of 10 or more, an Event Coordinator is needed
- All artists are cross-trained as Event Coordinators
- Artists lead events, and are sourced from the community
- Many are art students, art teachers or talented individuals who have attended past events or approached the studios to offer their skills
- Paid a flat rate for a session
There are 2 sellers overseeing operations by handling payroll, QuickBooks, and managing employees. A buyer could easily fill both shoes, and could run one of the studios as an Owner/Operator to boost profits by $30,000+.
Studios
- Location 1 – 2,500 sq. ft.
- Northwestern Iowa
- Seats 60+
- Location 2 – 1,600 sq. f.t
- Central Iowa
- Seats 60
- Has room for an office if a buyer desires one
- Location 3 – 1,250 sq. ft.
- Southeastern South Dakota
- Seats 52
Supplies
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Growth Opportunities
- Easily obtain a liquor license
- Only one location holds a liquor license, as required by that location’s city
- Untapped revenue stream
- More corporate and mobile events
- The sellers are currently working on establishing a partnership with a team building organization for paint & sip workshops
- This a great way to source customers for private and public events
- Run one of the studios as an Owner/Operator
- This would increase profits and cut down costs
Valuation Details
The Firm Business Brokerage used a Cost-to-Create methodology to determine the Purchase Price of the business. it would take far more time, energy and resources to recreate this business and client base than it would to purchase an existing model at $109,000.
The List Price for the business is set at $109,000.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857