Business Summary:
If you have ever wanted to own a business with very low overhead and few employees, without high rents to pay, and wanted to work only part time from a home or small office while enjoying the potential for unlimited growth, read on!
Established in June of 2001, this consumer goods E-tailer and B2B fulfillment operations in the electronics industry needs a new owner that can take the business to the next level. After only 18 months of operation, the gross sales of this business reached well over the $1 million mark, producing impressive profit numbers. The original business model, which was to sell electronics on the web, was augmented with fulfillment operations. Soon thereafter, the owner realized that the fulfillment portion of the business was more profitable, generating higher margins. In the period between 2003 and 2005, the fulfillment portion of the business grew equal to that of the web sales. With total gross sales lower than those of previous years, the improved margins contributed to higher profit numbers. In reality both of these models are very profitable and they can both be expanded further by aggressive advertising and marketing by a hands-on owner/operator. This business also offers a great lifestyle, as it requires only part time effort to produce a six-figure income. The current owner started downsizing and reducing his efforts to increase the business due to professional educational commitments from late 2005 onwards. Due to his workload, the owner could only devote a few hours per week to this business. Consequently, he decided that his best option would be to sell it to someone who is able to put in the time and effort to expand it. What makes this deal even more interesting is that the current owner, who has several years of e-commerce consulting and electronics industry experience; would prefer to stay on as a minority partner, with 25% ownership, if the new owners would like him to. This shows his commitment to the business model, and the future of this industry. The current owner, if requested to stay on as a minority partner, will pro rate the selling price to accommodate the new owners, so they pay only for the portion they are purchasing.
Currently, this business has operations in the following three areas:
1) Reselling consumer electronics to B2C and B2B customers directly through the web. This portion of the business consists of over 28,000 customers, some of which are large corporate repeat accounts.
2) Providing order fulfillment and drop shipping services to large established online shopping portals.
3) Off-web transactions, consisting of researching, purchasing and delivering consumer-electronics related equipment to large corporate customers directly. In this category the average order values tend to be larger and very profitable.
The selling price of $650,000, representing 100% of the company, includes an inventory valued at $250,000, several domain names, an eBay account with 100% positive feedback, established relationships with the largest wholesale distributors, and much more. The owner is willing to take $300,000 as cash down payment and would be financing the balance, further indicating his utmost confidence in this business and its potential. These days it is difficult to find a business with so much potential for growth and profitability being offered with such attractive terms. More information will be provided to serious inquiries.
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