Listing ID: 66552
This company, in the growing BBQ grill market, sells its trademarked brand of unique niche outdoor grill products and accessories predominantly through Amazon FBA with a small amount through its Shopify store. The company also has established coveted vendor listings/wholesale accounts with Ace Hardware and Home Depot. It is difficult to get vendor access to both of these accounts and with which a new owner could add existing products to expand the vendor listings and increase revenues via these channels.
The owner spends only about 1 hr/wk overseeing the business. Day-to-day operations are handled by a single employee working ~15 hours/wk managing inventory, orders and customer service. To avoid possible supply chain issues, the company has stocked up on inventory with about $200k on hand. Value of the inventory to be determined at time of close and added to the list price.
Over the past couple of years, the owner has been focused on new unrelated business ventures. Accordingly, the brand business has been operated part-time with no attention to growth. With renewed focus on operating and expanding the business, this brand has great potential in a growing billion-dollar industry!
• 3PL/Amazon FBA Model
• Trademarked Brand
• High Amazon Seller and Product Ratings
• Vendor/Wholesale Accounts: Ace Hardware, Home Depot
• Ace Hardware EDI already set-up
• Turnkey Opportunity
• Stocked with Inventory Valued at ~$200k to shield from any possible supply chain issues
• Clean with excellent performance and reputation
• Growing billion-dollar market
- Asking Price: $175,000
- Cash Flow: $40,658
- Gross Revenue: $330,538
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Pursue Other Interests
U.S. based competition is low and the company provides added value through lower pricing on same and/or better-quality products, great customer service and fast shipping.
The BBQ market continues to grow along with the good food trends. With the established foundation and success of the business to-date, this business can be readily scaled. Some strategies for future growth include: • Expand on the Home Depot and Ace Hardware listings, both on vendor listings and wholesale • New marketing efforts – optimize Amazon and Google advertising • Add new products • Increase social media presence
This Business Is Home Based
The venture was established in 2015, making the business 7 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nonetheless, the true reason and the one they tell you may be 2 completely different things. For instance, they might say "I have a lot of other obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is really crucial that you not rely totally on a vendor's word, however rather, make use of the vendor's answer along with your overall due diligence. This will paint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans so as to cover points such as inventory, payroll, accounts payable, etc. Remember that occasionally this can imply that earnings margins are too small. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new customers? Most times, operating businesses have repeat clients, which create the core of their everyday earnings. Particular elements such as brand-new competitors sprouting up around the location, roadway building and construction, as well as staff turn over can influence repeat consumers as well as adversely impact future incomes. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the better the chance to build a returning consumer base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the neighborhood typical home income influence future revenue prospects?