 Buy Internet Business In Pet Products
Internet Business Guide Listing #7466 |
| Status: |
SOLDv |
| Days On Market: |
74 |
| Sale Price: |
$875,000 |
| Business Type: |
NAICS 464111 |
| Business Category: |
Etailer |
| Business Name: |
NDA |
| Business Web Site: |
NDA |
| Asking Price: |
$1,950,000 |
| Down Payment: |
$ Negotiable |
| Gross Sales: |
$3,000,000 |
| Cash Flow (or SDE): |
$552,000 |
| Asking Price As Multiple of Cash Flow |
3.5 |
| Year Established: |
2002 |
| FF&E: (Included In Asking Price) |
$5,000 |
| Inventory: (Included In Asking Price) |
$20,000 |
| Employees: |
7 |
| Absentee Owner: |
No |
| Business Summary |
 Buy an Internet businessthat is growing, profitable online retailer of pet products. 95% of sales are generated in four broad product categories. The company focuses on selling a full selection of durable items in its target categories that are not generally available in pet stores in any significant variety.
The preponderance of the company’s business is generated via natural search engine rankings and it uses minimal paid search. Most orders are received via the web, with the company’s 1-800 phone service providing phone support.The bulk of the revenue is U.S. based, though international sales are growing. The firm operates from a 1,100 sq. ft. facility which provides office space and the minimal amount of warehousing currently required. The business can be converted to 100% drop ship and can also be easily relocated. The firm does not have a bricks and mortar retail presence.
Revenue is on tract to increase to $3.0 million in 2008, with business cash flow to owners forecast to equal $552,000. The gross profit margin has steadily risen over the years, including in 2008,and the company’s overhead is very low. There are a number of ways in which the business can be significantly expanded. |
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Facilities: NOT An Internet Home Business Opportunity – Part of the beauty of this business is that the physical assets associated with the business are minimal. The business operates from 1,100 sq. feet of rented space and 95% of the sales are drop shipped, meaning the level of inventory and the space required is very low relative to the sales volume. This business is easily relocated and the physical assets consist of a modest amount of furniture and equipment.
Competition: The source of the preponderance of the business’ sales is the result of web-based organic search results (ie. non-paid). The business consistently achieves high search ranking results in its four major product categories, including Google.
Growth: There are well defined opportunities for growth; including expansion into other pet products categories and products not currently emphasized by tthe company, the introduction of catalog-based marketing, the potential significant revenue growth that could be available should the business begin making more expansive use of paid search and the opportunities likely to emerge should new ownership manage the business on a full-time basis, as opposed to the part-time focus of current ownership.
Financing: Seller will consider some financing for suitable buyer.
Training: Seller will provide suitable training and transition assistance.
Reason Selling: Owners require a sale in order to fund another, nascent business venture.
Listed By: CGV |
