Listing ID: 79309
COVID PROOF BUSINESS!! Very profitable online discount store, variety of product, mostly adult diapers to underpads, chux to booster pads, wipes to gloves, and even incontinence skin care, medical equipment and medical supplies. They offer home health care products from manufacturers like Abena, Able-Life, Aloe Vesta, Covidien, Depend, Invacare, Bard, UroMed, , Coloplast, Ensure, Boost, Carex, Lumex, ConvaTec, Drive Medical. Direct relationships with manufacturers, two 1 (800) numbers and three domains are included in the price. Company also has customer base that brings weekly-monthly recurring orders, total customers 11283 of which 986 are on re order subscription and/or re occurring orders. Average customer spend 2k until they pass away or stop purchasing. Gross margins are at 30%. Amazon Store is also included with sale. So far sellers have spent about $215,000 for marketing.
- Asking Price: $449,000
- Cash Flow: $98,110
- Gross Revenue: $573,584
- 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:1
- Furniture, Fixtures and Equipment:N/A
Seller provides training for 2 weeks with no cost.
The venture was started in 2017, making the business 5 years old.
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 may be 2 totally different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be justifications to attempt to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or a range of other factors. This is why it is very crucial that you not depend totally on a seller's word, yet rather, use the vendor's answer along with your overall due diligence. This will paint a more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover things such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that earnings margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new consumers? Often times, companies have repeat consumers, which form the core of their day-to-day profits. Certain variables such as brand-new competition sprouting up around the location, roadway construction, and employee turn over can influence repeat clients and also adversely affect future earnings. One important point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the higher the opportunity to build a returning client base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the neighborhood average home income impact future earnings prospects?