Business Summary:
If you are commuting from the Santa Cruz area over the hill to the Silicon Valley every day, then consider owning this Santa Cruz area business and quit commuting!!!
The company is a manufacturer of proprietary food supplements for a specific childhood malady. Products are sold directly from the company website and through distributors. Most customers come from physician referrals or referrals from other customers. Business has an FDA compliant manufacturing facility that is new in 2011. All new tenant improvements in the manufacturing area.
Sales have trended down since the death of the founder four years ago. The capable and experienced staff has been hampered in their marketing efforts due to lack of capital as the estate has few other assets. All employees work part-time and like that. They all want to stay. Most of the employees have special knowledge or training - one is a chemist, one is an herbalist, another is a business systems specialist, one has expertise in marketing, etc. There is considerable tribal knowledge.
A new owner should have marketing and sales skills as well as general business management and leadership abilities. The general manager has a vision for business development but no budget for it. There are logical ways to get the word out to physicians, pharmacists, other health practitioners and parents of children with this malady that could result in significant growth for the business in a relatively short time.
New equipment purchased in 2011 makes 80 gallon batches, but company has not used it yet due to low sales volumes. When volumes are increased enough to use this new equipment, then labor costs will be cut in half because it takes about the same labor to make 80 gallons as the present 40 gallon batches. Efficiencies of scale should be realized at higher volumes resulting in lower labor costs per unit.
This business is in a large market and can grow significantly with good management and proper capitalization.
CEO has run this company since 2003 and wants to stay and work for a new owner.
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| Year
Business was Established: 2000 |
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| Number of Employees:
8 PT |
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| Facilities / Terms of Lease:
3,900 sf leased office and manufacturing space |
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| Potential
Growth/Expansion:
develop new products, distribute others products, new marketing programs to reach referral sources such as doctors, teachers, pharmacists, etc. |
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| Competition:
Large, global market with thousands of competitors but only a few for this special niche. |
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| Owner
willing to finance:
none |
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| Owner
willing to train:
employees - owner is dead |
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| Reason for selling:
death of owner |
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Seller Reference Number: 7816GC
BusinessMart.com Listing Number: 110934 |
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