Growing Pet Products Business with Multiple Flows of Income
Asking Price: $6,000,000
According to the American Pet Products Association (APPA) National Pet Owners Survey, 68% of US households own a pet, which equates to 84.6 million homes and in 2016, $66.75 billion was spent on our pets in the US. Industry growth is projected to continue to boom in the future with estimates that spending will reach nearly $70 billion in 2017.
This business is a multi-channel business that sells premium dog products through its online store as well as though its 4 brick and mortar locations located in the US. It is completely unique and unlike anything available on the market today. Sales for the business have increased every year, never having a down year. The business was designed by the owner to have multiple flows of income from various sub markets within the larger pet products industry. There are 4 booming brick & mortar retail locations, an e-commerce direct to consumer retail model as well as e-commerce B2B sales. This is a completely turn key operation as the owner chooses to be involved on a daily basis but this is not required. All staff are fully trained to run smoothly if the owner was not around and the business would create positive cash flow from day one. With all POS software & website software web based and not tied to a specific physical location, the business can be run from any location and the owner can check on all aspects of the business at any time from his phone.
The domain name is well known in the industry by most major players and has incredible value and versatility as it can be used as a B2B supplier, manufacturer or B2C retail website. It is extremely difficult to access a top level, keyword rich domain name like this today.
The company has been growing YOY since inception. When the business was acquired in 2009, revenues were $110,000. In 2017, the company reached $9,800,273 in sales for the year! Its growth trend has continued into 2018 with sales for Jan-Feb 2018 combined up about 16% over the same months in 2017!
It would cost multi millions to replicate the amount of work done to create this stable business PLUS years of effort with no guarantee of profitability. Every aspect of this business has been refined, pivoted, adjusted and tweaked to peak performance for this industry. Even with all of the work put in so far, the owner has barely scratched the surface on what could be done to rapidly expand the business.
This listing provides a rare opportunity to acquire a well-established multi-channel, highly profitable business in a recession proof industry with tremendous continued growth potential! The ideal buyer for this business would be a strategic partner such as a company already in the pet space looking to expand rapidly using this business as a foundation or a well-funded investment firm. Another option would be a firm looking to enter the pet industry wanting to hit the ground running without wasting time or money trying to figure out what works in this tricky industry.
|Employees||24 FT, 10 PT|
|Industry||Pet Products and Services|
|Location||USA, Washington (Thurston)|
|Home Based Business||No|
|Seller Finanacing Available||Yes|
What separates this opportunity from others is how scalable this business is and the number of options for growth. An investor could choose to focus on e-commerce, expand the retail stores or franchise out the retail stores and earn royalties. Additional opportunities include creating a unique product brand exclusive to the company importing from China to provide better margins and zero competition. The online B2B business could also become the primary focus. After owning the business for 8 years, the owner has uncovered numerous niche opportunities within the pet space that have not yet been acted upon. These opportunities can be shared exclusively with the buyer of the business.
There are many competitors in this popular industry, however this business tends to do well head to head with big box stores because big box doesn’t carry the same high-quality brands of dog food and pricing is higher due to larger overhead and store sizes. With typically 50% cheaper pricing and 300-500% more selection of products, this business dominates over boutique stores.
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