Listing ID: 76677
Business Overview
This is a niche B2B home-based business, with some B2C. It’s an e-commerce platform with a national customer base, along with a small amount of international. The current owner doesn’t work full time and there are currently no employees. All SLW products carry the company’s trademark, a recognized industry brand. For the price of just inventory plus 1x SDE, this business can be what you want it to be—the perfect side hustle, or a larger operation that can provide the new owner with a very healthy six figure income!
Financial
- Asking Price: $125,000
- Cash Flow: $75,713
- Gross Revenue: $265,993
- EBITDA: N/A
- FF&E: N/A
- Inventory: $93,000
- Inventory Included: Yes
- Established: 2010
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:1
- Furniture, Fixtures and Equipment:N/A
Home based. The inventory needed to maintain this business can be housed in a decent sized garage or basement area—otherwise a new owner would need to factor a storage unit into their operating budget. Roughly 500 SF will easily accommodate all inventory in an organized and uncrowded environment, with room for a packing and shipping area. (Home Based)
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.
Focus on other business
There are many LED sales channels online, but fewer that are specific to the sign industry.
Covid definitely impacted sales, as venues were shuttered and there wasn’t a need for them to focus on their signage. But even prior to that, the business had been suffering from a lack of attention to growing it, as the owner focused on his other ventures. He’s looking to turn SLW over to an owner who wants to focus on it and reap the benefits of a comfortable home-based business. There is much potential to expand into the ever growing LED lighting sector.
This Business Is Home Based
Additional Info
The company was started in 2010, making the business 12 years old.
The sale will include inventory valued at $93,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. However, the true reason vs the one they say to you might be 2 absolutely different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or a range of other reasons. This is why it is very crucial that you not depend totally on a seller's word, but rather, use the vendor's response together with your general due diligence. This will repaint a much more sensible image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that profit margins are too small. Lots of companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in new customers? Most times, operating businesses have repeat clients, which develop the core of their daily revenues. Particular variables such as new competitors growing up around the location, roadway building and construction, and personnel turnover can influence repeat customers and negatively affect future earnings. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the neighborhood typical house earnings impact future earnings potential?
