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Special Event Photo Booth Business - Run Passively

CASH FLOW
$44,243

Specifications

  • Price
    $131,000

  • Revenue
    $86,158

  • Cash Flow
    $44,243

  • Equipment
    $65,970

  • Location
    Omaha and Lincoln

  • Service Area
    Omaha and Lincoln metros

  • Valuation
    $138,393

  • Industry
    Recreation/Event

  • Profit Margin
    51%

Turn up the fancy for weddings, parties and corporate events with this elegant photo booth business netting a 51% profit margin!  Current owner runs passively, but increase profits by attending the photo booths yourself at each event.  An average 4 to 7-hour booking runs at just over $600 with expenses at $150 to $184, resulting in a net profit of over $415 per event!  Business is being turned away as the owner is unable to accommodate the demand, but 2015 and 2016 had 141 bookings each. 

Customers can choose from 4 photo booth styles: wedding, party, VIP and Hollywood.  Booths range from a cozy, five-person capacity to a whopping 12-person affair.  Photo strips are presented on stylish VIP frames, and those waiting outside can see the fun within the booths broadcast over TV monitors.  Party guests are also treated to fun props to be used in the photo booths, and the Hollywood vibe is real with red carpets and stanchions for the VIP experience

Established in 2010, this business is fully operational and ready for a new owner to step in and begin booking events. Uniformed employees staff the booths as needed for the events, taking care of pre-event setup, helping customers during events, and teardown afterward.  The current owner books events and manages the contracted labor.  This business could easily continue as a passive operation, but profits would increase by an owner working the events.

In the first year, a buyer with a 15% down payment of $19,650 would profit $26,144 (133% return) after all debts are paid.

** Just awarded the Hall of Fame award from The Knot for earning Best of Weddings four years running!


Business Highlights

  • Year Established: 2010
  • Service Area: Omaha and Lincoln
  • Over 100 5-star ratings (including 2014 – 2017 The Knot Pick)
  • Cost: $600 for 3 hours or $700 for 4 hours (pricing may vary depending on contracted labor pay)
  • 141 bookings each in 2015 and 2016
  • Reason for Selling: Capital to start a new business
  • Employees: Contract labor as needed (current owner pays $25/hr but suggests rates as low as $15/hr)

Financial Highlights

  • List Price: $131,000
  • 2016 Gross Sales: $86,158
  • 2016 Cash Flow: $44,243
  • 51% profit margin
  • Assets Included in Purchase: $65,970
    • $65,970 in equipment including:
      • Open air booths - $22,500
      • Apple Industries wedding booth - $10,300
  • $11,980 in events booked for 2018
  • Average 4 to 7-hour event earns over $600, with a net profit of $415+

Company Philosophy – A Word from the Seller

I have been doing production for 44 years, and I got into the photo booth business because I could use my background of stage production for my photo booths. It sure shows!

We DO NOT just set up a photo booth... we CREATE a CLASSY, ELEGANT, FUN, and EXCITING ATMOSPHERE with backdrops, LED lighting, TV Monitors, Carpeting, stanchions with ropes, displayed props, VIP frames that we attach to the photo strips with online gallery instructions on the back of the frames (very nice keepsake and presentation), BEAUTIFUL CUSTOM THEMED GRAPHICS FOR OUR BOOTHS that separate us apart from our competitors, and great attendants. We bring so much more to the table for your event!

All you have to do is compare our photos to our competitors. You will see a HUGE difference!

Our photo booths are the largest in the area. You can get 12 or more guests inside our booths.

Our service has been awarded with The Knot's "Best of Wedding" 4 years in a row: 2014, 2015, 2016 and 2017. We have over 100 FIVE STAR REVIEWS and counting! No other photo booth company has reached these stats.

If you want a PRESENTATION and AWARD-WINNING service for you and your guests... hire us!

2017 Events

  • $69,286 in completed events for 2017 (with another $7,875 booked in November/December)
    • Events include Creighton’s Golden Apply Banquet
    • Fremont High School Post Prom
    • Company events for Election Systems & Software, Werner Enterprises, The Lund Company, and Central Valley Ag

Equipment

  • Replacement cost of equipment is over $65,000
  • 3 open air booths - $22,500
  • 4 9-foot glass truss TV stands - $3,000
  • 22 stanchions - $1,540
  • 3 TV monitors - $2,100
    • 46” Toshiba
    • 40” Vizio
    • 37” Samsung

Cash Flow Analysis


 

  • 51% profit margin in 2016
  • Annual expenses run at $41,915
    • Includes website fees, labor costs, COGS for events
  • 141 events in 2016 and 2015 each
    • Current owner is turning away business as he is too busy

Booth Packages

  • Themed “Enclosure” Photo Booths
    • Themed, custom graphics that are original and made just for this company
    • Hold up to 12 and are wheelchair accessible
    • 4 different themes
      • Wedding booth enclosure
      • Party booth enclosure
      • VIP booth enclosure
      • Hollywood booth enclosure
    • Booths come with stanchions with red ropes, LED lighting, a TV monitor, displayed props, lighted backdrops, VIP frames, scrapbooks and CDs
  • Wedding Booth Enclosure
    • 8x7’ enclosure with a medieval door that guests walk through to get into the booth
    • Other variations include heart graphics and white leather retro style
  • Party Booth Enclosure
    • Custom graphics with graffiti and streamers
    • For $100 fee, can place a logo, birthday name or anniversary name on the banner in front of the booth
  • VIP Booth Enclosure
    • Includes red carpet with stanchions that looks like carpet is coming out toward guests
    • Real red carpet runway on the floor to extend the VIP look
  • Hollywood Booth Enclosure
    • Guests walk the red carpet to get their photos taken
    • Fun inside the booth is broadcast on the TV monitor
    • Variation includes Open Air Hollywood Star Screen which includes a $7,500 open air photo machine with backdrops

Amenities & Services

  • Red Carpet Runway
    • Guests walk down red carpet to get their photos taken
  • TV Monitors
    • Capture the fun, excitement and hilarity inside the photo booth for guests to see
    • ONLY company that uses outside TV monitors on 9-foot truss stands
  • Backdrops
    • LED lighted for illumination
  • Customized Photo Strips
    • Customize header and footer at no charge
      • Include names, logo or special text for the event
  • VIP Frames
    • Attached to photo strips
  • Stanchions with Red Ropes
    • Great for crowd control and add class and elegance
  • Props
    • Large assortment of glasses, helmets, hats and caps
    • Props are on display so guests have easy access to them
  • Unlimited Photos
  • Printers
    • Within 12 seconds, two duplicate photo strips are printed after each session
    • Print in color or black and white
  • Photo Booth Attendants
    • Trained attendants to greet guests, run the booth, present and give guests their photo strips on VIP frames, help with props and create a scrapbook

Product Offerings

  • Scrapbooks
    • All guest pictures and signatures are captured in a special scrapbook
    • Packaged in beautiful gift boxes
  • CDs with Guest Photos
    • All the guests’ photos taken the night of the event on one CD
  • Gallery Page
    • Gallery pages set up for events (password protected)
    • Save and of the photos on the hard drive or order prints
  • Custom Graphics
    • For a fee, any logo, photo, or design can be placed on the front of the enclosure
  • Setup and Tear Down
    • DO NOT set up when client’s guests are present
    • Arrive early and set up the photo booth slowly
    • Photo booth attendants will pack up the show after the event is over

Fees & Expenses

  • Monthly Expenses ($375 - $385)
    • $100 to Web.com for SEO
    • $130 to The Knot
      • Current owner recommends forgoing The Knot, as Google is where the majority of clients are coming from
    • $95 for equipment insurance
    • $20 to Smugmug (platform for running the gallery page)
    • $30 - $40 for Thumbtack
      • Online service matching customers with local professionals
  • Expenses for a typical event
    • $100 for 4-hour contract labor
      • Current owner pays around $15/hour to $25/hour for labor
      • Pay includes labor costs for set up and tear down of photo booths
    • $39.50 for scrapbook, thumb drive, sharpies, scrapbook paper, etc.
    • $25 for paper and ink ribbon
    • $20 for gas
    • A $750 event would net $565.50 in pocket (events without scrapbook expenses would net $500)

Growth Opportunities

  • There’s no other business in Omaha or Lincoln with this level of style and service
  • Work events without contract labor
    • Expenses are very little, so a new owner could net almost the entire event fee
  • If you continue with using contract labor, simply book more events
    • Opportunities abound in school events, fundraisers, conventions, weddings, corporate parties and meetings, anniversaries and birthdays
  • Most marketing is word of mouth
    • Increase presence on social media
    • Utilize Instagram
      • This business perfectly fits into that platform, and the more followers you get more coverage and ad space will come

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business.  The formula used is as follows:

Cash Flow       x          Multiplier          =          Price

“Cash Flow” is the sum of net income plus any owner perks and non-onward going expenses.

“Multiplier” is a prescribed number between 1 and 5 determined by a 100-point, 20-question rating system used to determine the business valuation.

The 2-year average Cash Flow for 2015 & 2016 is $46,913 with a prescribed multiplier of 2.95.

With this information, the computation result follows:

$46,913           x          2.95     =          $138,393

The List Price for the business is set at $131,000.

Funding Example

Purchase Price:                       $131,000

15%Buyer Down Payment:     $19,650

25%Seller Financing:               $32,750

60%Bank Loan:                        $78,600

Seller Financing 5-year term at a rate of 4.5% equals a monthly loan payment of $611.

 

Bank Loan 7-year term at a rate of 5.25% equals a monthly loan payment of $1,120.

 

After business expenses and annual loan payments of $20,769, a buyer would see a profit of $26,144. A 15% down payment of $19,650 results in a 133% return on investment in the first year!

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $131,000 with the terms listed above, the coverage ratio is 2.26.

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.  

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210 N 78th St. 2nd Floor
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