Listing ID: 66578
Having found no other product on the market that was specifically designed for post cosmetic surgery, the founder decided to take matters into his own hands. With the goal of creating a high-quality post surgery product based on the features for which he had been searching, he designed and created his own brand of this niche product.
This trademarked brand is sold predominantly via Amazon FBA with a small amount through its Shopify store and Walmart. The business is operated by one owner working about 4-6 hrs/wk handling all aspects of the business and a VA who handles social media, marketing and various other tasks.
The company is on a growth trend with sales and profits up in 2020 over 2019. Its success has continued this year with sales up 26% and profits up 18% for Jan-Nov’21 over the same period in 2020. Its marketing efforts have been primarily through Amazon Ads, providing a huge growth potential for a new owner to readily increase sales further by implementing more social media ads, utilizing Brand Influencers and much more!
• Helped to create and establish the niche
• Multiple trademarks and one patent pending
• Clear leader for this specific solution/tool
• New Product – A second product has been designed and is ready for production by the same manufacturer
• Current operation requires minimal time commitment
- Asking Price: $300,000
- Cash Flow: $70,332
- Gross Revenue: $176,790
- 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
Having basically created the niche, there are few competitors in the space. The product is proprietary and patent pending, with the size and pattern making it unique in the marketplace.
With its established foundation and success, the brand is poised for the next level of growth. There are numerous opportunities to scale the business to its true potential. Some strategies for future growth include: • Expand to several additional marketplaces on Amazon • Add additional resources to Walmart and Shopify as those channels will continue to grow • Add a second SKU (there is another product that is ready to be manufactured by the same manufacturer) • Increase ad spend on other platforms
This Business Is Home Based
The business was started in 2017, making the business 5 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell companies. Nonetheless, the real factor vs the one they say to you might be 2 totally different things. As an example, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current decrease in incomes, or an array of other reasons. This is why it is really vital that you not count completely on a vendor's word, but instead, utilize the seller's answer together with your overall due diligence. This will repaint a much more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans in order to cover items such as stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too small. Numerous companies fall 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 take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new customers? Most times, companies have repeat consumers, which form the core of their daily earnings. Certain aspects such as brand-new competition growing up around the location, roadway building and construction, and personnel turnover can impact repeat customers and also adversely influence future incomes. One vital point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the higher the opportunity to build a returning customer base. A last idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Exactly how might the regional average house income impact future income potential?