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- #18 - Dog accessory business for a bargain πΈ
#18 - Dog accessory business for a bargain πΈ
π Hey builders!
Welcome to all the new people who have joined last week!
Sending this one late as Iβm traveling this week but hope you enjoy it!
Here are 3 new deals we found this week for you to check out.
If youβd like to get the full list of 8 deals then you can subscribe to the paid version towards the end.
Letβs explore!
Estimated Reading Time = 5 minutes
π Startup Spotlight
Discover profitable startups and side-projects.
π° Asking Price: Open To Offers
eCommerce business with a full decadeβs worth of product history. They have sailed into a great position within the water sports industry thanks to their lightweight, portable water paddle, which is powered by an ordinary cordless drill.
Type: eCom
β Key Highlights
Revenue: $137k
Profit: $51k
Margin: 37%
Multiple: 3.73x
π Growth Opportunities
Expand to International Markets: Leverage the Amazon platform to enter non-US regions like Canada, Europe, and Latin America.
Increase Direct-to-Consumer (DTC) Sales: Enhance DTC channels and leverage Amazon's FBA to make shipping more efficient.
π© Cons
Single Product: 98% of sales are from their specialised paddle, which makes the business vulnerable to demand fluctuations for this single product.
Dependance on Owner: Currently, the owner handles all major tasks from shipping orders to customer service. This could be a risk if the owner is unavailable for any reason.
#2. Ship Scout (πΈ $14.1k MRR)
π° Asking Price: $500,000
Shopify app for A/B testing shipping rates and free shipping thresholds
Type: SaaS
β Key Highlights
$$130,000 in TTM revenue
$110,000 in TTM profit
$11,000 in revenue last month
$9,300 in profit last month
π Growth Opportunities
Influencers: Work with TikTok / Twitter influencers on creating content around the app. Majority of brand owners are on those platforms.
Expansion: Push to other areas other than shipping rates. Look at expanding into further shipping tracking and automation around the order/shipping process.
π© Cons
Valuation: Great business and very easy to execute but the valuation is incredibly high. Negotiate with owner to bring down valuation to a 3x multiple instead of 5.
π° Asking Price: $175,000
Dog accessory DTC brand.
Type: eCom
β Key Highlights
$406,531 in TTM revenue
$73,579 in TTM profit
$28,382 in revenue last month
$2598 in profit last month
π Growth Opportunities
Paid Ads: Increase efficiency on paid ads channel. Current margins indicate that either COGS are really high or margins from marketing channels are very slim.
Influencer Gifting : Develop a gifting strategy to influencers with dogs. Get them to post on organic channels with a referral link to encourage their audience to buy your product through their post.
π© Cons
Margins: Profit margins are very low. Sitting around 18%. Before looking into this business I would dive into the current expenses and figure out how you can decrease the current expenses so you can get a higher profit margin if you acquire this brand.
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