Listing ID: 66558
This business offers a leading trademarked brand of superior quality wireless audio devices with sales converted through its Shopify store. Since its creation, the company has accumulated 83k+ customers, nearly 300k engaged followers on Instagram and has surpassed $6.4 million in gross sales to-date. Well-known celebrities have been seen using the products.
The company stocks inventory and fulfills orders from leased warehouse space. The approx. inventory value is around $200,000. It is operated by one owner who works approx. 20 hours per week handling marketing, monitoring sales and manages inventory as well as new products with manufacturers. There are several contractors who respectively handle fulfilling orders, customers service, bookkeeping and content creation which includes influencers who promote the products. The contractors are willing to continue on with a new owner.
This business has tremendous product branding and excellent foundation providing a great opportunity for any buyer looking to acquire an ecommerce business with innovative branded product lines and lots of room for future growth in a unique niche industry!
- Asking Price: $475,000
- Cash Flow: $137,311
- Gross Revenue: $1,761,021
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Pursue Other Interests
This business has the competitive advantage in this niche by priding itself on using the highest quality components to construct its products. Additionally, the business is well branded and the team understands social media marketing very well.
Building on its solid performance, this business is positioned for a new owner to scale by selling on Amazon, going into retail, hiring a fulfillment center, and working with more influencers.
The company was started in 2017, making the business 5 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. Nonetheless, the true factor and the one they tell you might be 2 totally different things. As an example, they may claim "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, current decrease in incomes, or an array of various other factors. This is why it is very important that you not count totally on a seller's word, however rather, use the vendor's response along with your general due diligence. This will paint an extra reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies borrow money in order to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that revenue margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new customers? Most times, companies have repeat clients, which develop the core of their day-to-day earnings. Particular variables such as new competitors sprouting up around the area, road building, and personnel turnover can impact repeat consumers and also negatively impact future incomes. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to build a returning consumer base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean house earnings impact future earnings potential?