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Internet Distributor of World Leading Brand of Hair Products
For Sale
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Description : |
Asking price includes
1. Solid financial foundations
2. Famous brand distribution, reputation and support
3. Key marketing strengths and advantages
4. Important operational strengths
5. Many opportunities for growth in sales, profits and business value
Business profile:
1. Solid financial foundations
Turnover for first 22 months of trading c. £294,244
Gross Profit for period c.£66,675
No borrowings
Cash positive
Very early profitability achieved following launch
Profitable in 11 months out of last 12
100% product availability despite very low stock levels
Excellent monthly management information
2. Famous brand distribution, reputation and support
Sales of the world’s leading brand in its sector of the haircare market
Very high customer loyalty and brand recognition levels
Supported by TV and press advertising at no cost to the business
Fine reputation in the haircare/beauty market for reliability and trustworthiness
Excellent mutually supportive relationship with the brand’s owners
3. Key marketing strengths and advantages
One of only a limited number of authorised distributors of the brand
Excellent customer database - c.3,700 names/email addresses (inc. 2,000 postal addresses)
Significant customer goodwill due to high service levels
Brand strength will easily bring numerous free or low cost PR/promotional opportunities
Good Google and Yahoo rankings despite limited SEO
4. Important operational strengths
Attractive e-commerce website is user-friendly, secure and low maintenance
Great website support at low cost by EKM Powershop (when required)
Completely portable business within the UK
No technical knowledge required whatsoever
No business premises – is managed from home
Extremely small storage, packing and administration space needed
Reliable deliveries within 24 hours of ordering
All orders sent by Royal Mail and are easy to administer
Full training and smooth handover from very knowledgeable and helpful personnel
5.Many opportunities for growth in sales, profits and business value
Once a Confidentiality Agreement has been signed, further information about the company will, of course, include the name of the haircare brand sold by the company.
The value of this company lies in:-
The many current business strengths listed previously
Future action and investment in one or in several important areas of completely unfulfilled opportunity as summarised below.
Current Situation -Product Future Opportunities – Product
Only one brand and one product type Add other haircare brands and products
NO beauty or skincare products Add beauty and skincare products
Current Situation – Marketing Future Opportunities – Marketing
NO management time spent in the business (other than board meetings) for 12 months+ Dedicated time and attention must improve results
SEO restricted to first few months in 2006-7 Take an interest in SEO and website content and development
NO email marketing yet undertaken Take advantage of customer database and communicate directly (3,700 contacts)
NO other promotional activities for 18 months Target magazines eager for this brand’s prizes for competitions; link to other websites
NO intensive Pay Per Click for 18 months (PPC used only at start-up) Invest wisely in PPC – perhaps increase prices – to increase sales at better margins
NO overseas marketing – ever Capitalise on sales growth from South Africa, Australia and the EU (despite no marketing)
Exclusive focus on discounted prices has limited knowledge of price elasticity Experiment with higher prices backed by marketing and PPC activities
Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler
Reason for Sale:
There have never been any employees on a payroll – one of the shareholder/directors and his wife, have managed customer service and order fulfilment on a very part time basis from their home. The other two shareholders have played extremely limited roles for the past 18 months. Payment has been through very small monthly dividends.
This ongoing lack of time and attention has always been recognised by the shareholders as a weakness, with financial performance rather unsurprisingly severely suppressed by these circumstances.
The only reasons that this business is on the market are further changes in the circumstances of the 4 key people in the business, resulting in realisation that – if the right buyer can be found – then exit is an obvious course of action.
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Staffing : |
The business was started by and is still run by the original investors who all work in the business on a very part time basis to varying degrees. However, at this moment in time, the business could easily be run by one full time person with additional staff as required. |
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Tenure : |
There are no premises associated with the sale. The business is truly relocatable and is currently run from home. It can very easily be run from anywhere with a computer and an internet connection. |
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