Listing ID: 83875
This Fulfilled-by-Amazon (FBA) business sells premium, all-natural, dietary supplements focused on immune health for both humans and their pets. These award-winning, researched-based, proprietary formulations offer advantages over competitive products including compliant labels, premium market positioning, and a patented dual-capsule technology. All products are Non-GMO, Gluten free, vegan, and made in the USA.
Supplements sold over $140 billion in 2020 and is expected to enjoy a healthy 8.6% compounded annual growth rate through 2028. This brand is positioned as the leader in the Monolaurin ingredient, which provides enormous potential for the increased awareness of its benefits.
This brand offers 12 different supplements from 3 different vendors, and boasts high margins, low returns, and a strong 33.7% repeat customer rate. The top 5 products have over 2,400 total reviews on Amazon rank an average 4.64 stars.
Two recent new product launches are anticipated to drive a 20% revenue increase in 2022 but the owner outlines 8 additional paths to significantly grow the business.
The business comes with 3,200 and 750 Facebook and Instagram followers respectively, and a 2,000-email subscriber list and can be operated part-time, anywhere in the world with an internet connection.
- Asking Price: $600,000
- Cash Flow: $154,458
- Gross Revenue: $679,360
- EBITDA: N/A
- FF&E: N/A
- Inventory: $150,000
- Inventory Included: N/A
- Established: 2015
- 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
This Business Is Home Based
The business was established in 2015, making the business 7 years old.
The deal won't include inventory valued at $150,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. However, the genuine reason vs the one they say to you might be 2 absolutely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a range of other factors. This is why it is very essential that you not rely entirely on a seller's word, however instead, use the seller's response in conjunction with your general due diligence. This will paint an extra sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that earnings margins are too thin. 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 additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new clients? Most times, businesses have repeat clients, which develop the core of their everyday profits. Specific aspects such as new competitors sprouting up around the location, road building, as well as employee turn over can influence repeat clients and also negatively influence future profits. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the higher the possibility to build a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Exactly how might the neighborhood average house earnings effect future revenue prospects?