Business Overview

This growing specialty high quality cigar business obtains their product made and packaged to their specifications, factory direct from the Dominican Republic and carries approximately $170,000 in inventory at their home-based office where they process on-line orders, package, and ship these cigars direct to customers. Sales are completed primarily on-line via the ecommerce website to a growing base of repeat individual customers and some business retailers. Products include three primary lines of ten (10) custom blended cigars under a trademarked brand along with related merchandise and some branded clothing. This is a home-based business that can be easily relocated with significant growth potential.

Financial

  • Asking Price: $386,000
  • Cash Flow: $95,021
  • Gross Revenue: $197,194
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: $171,000
  • Inventory Included: Yes
  • Established: 2017

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two friends who had a passion for good cigars started this business in 2017 and the business has shown year over year steady growth ever since. One owner is the face of the brand while the other owner is responsible for day-to-day operations. At this time, they have decided to sell as they have grown the business to the point it is ready for someone to advance and grow it to another level and they would like to retire. Business is currently home based and can easily be relocated to anywhere all sales are on-line. (Home Based)

Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Pros and Cons:

For the most part brick and mortar cigar sales tend to be higher than on-line sales due to the additional costs of operation. Various on-line and brick and mortar cigar specialty brands and stores compete with this business. This is a rugged, fun brand that differentiates itself by providing high quality mid-market cigars at a fair price that are easily accessible on-line with faster order processing and shipping than industry competitors. They have also focused on delivering high quality customer service by engaging with their customers on-line and building lasting relationships. International sales to the UK and Canada are a growing segment of the business.

Opportunities and Growth:

There is opportunity to continue to expand on the product line of the brand and build upon the established VIP program and implement a subscription-based program that would provide recurring revenue. Expanding to additional brick and mortar retailers and international distributors are additional opportunities.

Home Based:

This Business Is Home Based

Additional Info

The business was founded in 2017, making the business 5 years old.
The deal shall include inventory valued at $171,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell businesses. Nevertheless, the genuine factor vs the one they say to you may be 2 totally different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or an array of various other factors. This is why it is very essential that you not count completely on a vendor's word, but instead, utilize the seller's answer together with your total due diligence. This will paint a much more reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies take out loans so as to cover items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that earnings margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new customers? Often times, businesses have repeat clients, which create the core of their day-to-day revenues. Specific elements such as brand-new competitors growing up around the area, roadway building, and employee turnover can influence repeat clients and also negatively affect future incomes. One essential thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning client base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local median family earnings impact future earnings potential?