Business Overview:
Sign shop for sale in Southeast Minnesota. Known as the one-stop shop for the products and services it provides, the company is located in a growing community about an hour outside of the Twin Cities metro area. This business has been servicing its customers for almost 20 years, and with a dedicated and competent staff in place, 2 Full Time, 2 Part Time, this business is poised for continued success as is or ready to be invigorated into new growth with a change in ownership.
From automotive wraps to billboards, this business has all except the largest signage needs covered. The company has an established reputation for quality in the area it serves. This business has mostly B2B sales and also a good mix of B2C sales. With a reputation for quality work and service the company obtains customers mostly through word-of-mouth and referrals. The local economy around this business is growing. Competing local shops are becoming less common making this business a go-to for the surrounding communities. Increased marketing and sales efforts could drive more business. In addition, adding employees to increase ability to take on more work could increase revenue. If a buyer is interested in expanding offerings to larger signs, there is a good demand for those larger projects that could be capitalized on.
Affordably priced at asset value, this business is a prime opportunity for someone currently in the sign business that wants to expand operations, or, someone with previous experience in the sign industry that wants to be a business owner.
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Property Features and Assets:
Seller is interested in entering into a lease with the next owner. Building is available for lease or purchase. Current space is adequate for operations and is well maintained.
Assets = $170,500
Market Competition and Expansion:
Online media has challenged many traditional alternatives to billboards, like newspapers and magazines, slowly seeping into billboard advertising as well. Nonetheless, advertisers have continued to value Billboard and Sign Manufacturing industry products as a way to reach mass audiences in an increasingly fragmented media landscape, benefiting demand for the industry. The effects of the COVID-19 pandemic undermined industry revenue in 2020 as downstream demand declined broadly, reducing advertising expenditure and business formation. The pandemic has also produced a broad decline in nonresidential construction spending, reducing demand for general signage from commercial, public and institutional facilities. While advertising budgets have bounced back and boosted demand for the industry, revenue declined at a CAGR of 1.6% to $14.7 billion over the past five years, including tepid growth of 0.1% in 2023.
Digital billboards have emerged as a growth area for manufacturers. Since these displays make it easier for customers to transition between advertisements, they sell at higher prices. This has kept profit margins high, especially as technological improvements have reduced the cost of light-emitting diodes (LEDs) and other electronic components. However, the complexity of designing, assembling and servicing digital billboards has also increased the industry's need for skilled labor, and thus raised wage costs. Digital billboards will remain a significant driver of growth for sign manufacturers, despite regulatory attention at the local level about their quality-of-life and safety issues.
The industry's bounce back will be limited by the slowdown of the economy. Over the next five years, industry revenue will stagnate, contracting at a CAGR of 0.1% to $14.7 billion. However, opportunities will remain as total advertising expenditure will grow moving forward. The continued growth in business formation and the recovery of nonresidential construction will increase the size of potential markets, sustaining demand and encouraging the entrance of new sign manufacturing companies.--IBIS World
The local economy around this business is growing. Competing local shops are become less common making this business a go-to for the surrounding communities. Increased marketing and sales efforts could drive more business. In addition, adding employees to increase ability to take on more work could increase revenue. If a buyer is interested in expanding offerings to larger signs, there is a good demand for those larger projects that could be capitalized on.
Reason for Selling:
Owner wishes to retire from business ownership.
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
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