Listing ID: 66574
Business Overview
This is a highly successful print on demand business in the pet niche which allows customers to upload a photo of their pet at purchase, which a highly skilled team of graphic artists customizes onto parody/renaissance/ etc. themed custom canvases, posters, phone cases, mugs, blankets, tumblers, puzzles, digital portraits and more.
COGs are ordered on demand through suppliers API after purchase, so there is no inventory risk.
Owner spends about 10 hours a week on the business. Main tasks involve coordinating with the ad agencies that manage Google and Facebook as well as a graphic design manager, coming up with new design ideas as well as back-end strategies (upsells, email, AOV, and some A/B testing).
Top geo for customers is the US, with the UK, Canada and Australia.
Sales Trend and Sustainability
“2020 was a bit of an anomaly year for E Commerce because the massive increase in people in lockdown meant there was an unprecedented increase in people at home on their devices.
This resulted in a huge decrease in the cost of advertising and a large increase in profits as a result. 2021 was more of a typical year for performance, although we did see a decrease in sales, we still managed to surpass 7 figures for the year.
The price is based on 2021 numbers and would be significantly higher if it were based on 2020 numbers. We don’t anticipate any further decline as the difference in sales/profits was the result of an anomaly year rather than any significant issue.”
Key Points
• 564 Designs with IP Agreements in place with designers
• Email List of 35,000 Pet Lovers
• 20,000 Facebook Followers
• 10,500 Instagram Followers
Financial
- Asking Price: $400,000
- Cash Flow: $150,498
- Gross Revenue: $1,061,302
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
Detailed Information
- 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
Home Based
Yes
Pursue Other Interests
This Business Is Home Based
Additional Info
The venture was founded in 2019, making the business 3 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell operating businesses. Nevertheless, the real factor vs the one they say to you might be 2 completely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a range of various other factors. This is why it is very important that you not rely absolutely on a vendor's word, yet instead, make use of the seller's answer along with your total due diligence. This will repaint a much more realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans in order to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can mean that profit margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that should be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new customers? Most times, businesses have repeat consumers, which develop the core of their everyday profits. Particular variables such as brand-new competition sprouting up around the location, roadway building and construction, as well as personnel turn over can affect repeat clients and negatively affect future incomes. One crucial thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the greater the opportunity to build a returning client base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the local mean house income effect future revenue prospects?
