Listing ID: 79330
For sale is a one-of-a-kind E-commerce business with virtually no relevant competitors in the house plant niche. The business has been featured in FORBES, USA Today and Better Homes & Gardens in addition to many other large publications.
Revenue grew 200% from 2019 to 2020 and is on track for explosive growth once again in 2021.
The business is perfectly positioned with a strong moat and is consistently gaining market share across a variety of markets/industries with a combined $172 Billion spent annually.
The site drives revenue through the production and sale of Succulents (house plants) and features 200+ Succulent varieties, monthly subscription boxes, gift boxes & corporate gifts, house plant accessories and detailed care instructions.
- Asking Price: $8,449,999
- Cash Flow: $777,323
- Gross Revenue: $3,285,305
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The owner is very easy to get along with. He built this company from the ground up and wants to see this succeed. For a full sale, he is willing to stay on for several months to help the new owner with all the processes, to continue the upward climb, and to take advantage of future growth.
Move on to other opportunities.
The succulent plants industry is very hard to manufacture. It is very difficult to find and establish a vendor and supplier. Once you establish the relationship and systems in place, it creates a moat from others entering to try to duplicate and replicate the model since they are typically costly endeavors. The current owner has a very special relationship with the supplier that will transition to the new owner. The website is ranked number 1 for the term “Succulent” and the SEO marketing strategy drove 5 Million visitors to the site in 2020. The SEO team is offshored and continues to produce an enormous amount of content for the site making it virtually impossible for any competitor to step into the niche and surpass the company's level of organic growth. The site has experienced 300% organic growth without any paid media and ranks for 5,385 keywords organically with an estimated SEO click value of $67,000+/ month. Plants are sourced and grown in California which is the only state where local nurseries carry a wide variety of succulents. Sourcing plants locally makes for the delivery of a much healthier plant compared to big box retailers where these plants are often mishandled and not cared for properly. The shipping of succulents requires precision and processes are in place to make sure each plant is handled securely and efficiently to ensure a safe delivery.
Lower expenses you’re paying out (payment processing fees, ads, workers, product - Owner will show you how to reduce expenses) Add more products Duplicate the process he did to generate 5 star reviews Hedge your risk by adding new subscription offerings Position for acquisition to major home decor big box brands for 100s of millions once growth is there for 10+ years…This is a company’s dream to get something automated in a niche space with dominance in SEO and a large customer base that the company currently serves The current owner only recently began using paid media ads. The opportunity exists to exponentially scale traffic and revenue with the implementation of a profitable paid media/ads strategy. In April 2020 the company expanded into the $125 Billion corporate gifts industry completing $160k in orders for large companies such as Adobe, Bank of America and The Home Depot. There is a huge opportunity to drive additional revenue here with focused marketing and sales efforts.
The venture was founded in 2019, making the business 3 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. However, the real reason vs the one they tell you might be 2 entirely different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a range of other reasons. This is why it is really essential that you not rely totally on a vendor's word, yet instead, utilize the seller's answer in conjunction with your overall due diligence. This will repaint a more practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that profit margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new consumers? Many times, companies have repeat customers, which create the core of their day-to-day profits. Specific factors such as new competition sprouting up around the area, road building, and also personnel turn over can affect repeat consumers and negatively affect future earnings. One important point to think about is the placement 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 regularly, the higher the possibility to build a returning client base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood mean household income influence future revenue prospects?