Business Summary:
This company was awarded its General Service Administration (GSA) contract in 2007. The GSA mission statement is “to use expertise to provide innovative solutions for our customers in support of their missions and by so doing foster an effective, sustainable, and transparent government for the American people”, and this company specializes in making that mission statement a reality by selling government agencies office products at a discount rate via the internet. They sell items like Boise cascade 100% PCM paper, HP9200 Digital sender, 20” LCD Privacy Filter, two wheeled hand truck, PD cross cut heavy duty paper shredder and more. Using their contractual approve status from the GSA different government agencies, like the Army, Navy, Homeland Security and the Department of Agricultural, purchase products from the business. The contracts are not easily obtained; they are about two hundred pages long, requiring experience, interviews, startup capital and a lot of patience.
The following are just a few things that are necessary that the owner plans to train you own: 1. GSA E-buy Bidding (Training) 2. GSA straight purchase orders with government credit card (poportal@gsa.gov) 3. SIP (GSA Schedule Input Program) - loading up products for GSA Advantage (Training) 4. GSA Expo (Held annually to promote products and build relationships with buyers) 5. IFF (Industrial Funding Fee) - reporting quarterly sales of GSA Schedule Contract 6. GSA Market Tips (Free advertising space for Contract Holders) - 100K copies circulated quarterly to ALL government buyers 7. How to maximize the GSA Schedule Contract (i.e., viewing previously won bids and seeing who the procurement officer was and perhaps doing a mailing to their office with a product catalog) 8. Selling/buying point - only 32 items on current contract and done on a part-time basis. How adding 1000 items and working full-time can take the Contract to a substantial level.
The owner has only 32 items and has cash flowed 36,000 in 2009 and about 49,000 in 2010. To think that he has so little items and is working only about 5 to 6 hours a week on this contract is amazing, a full time operator and the adding of more items for sale would change the dynamics of the cash flow significantly. The asking price is $100,000. This sale does not include cash & cash equivalents; trade accounts receivable and non-operating assets. All existing liabilities, at closing, shall be satisfied by Seller.
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