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#18 - Dog accessory business for a bargain πŸ’Έ

πŸ‘‹ Hey builders!

Welcome to all the new people who have joined last week!

Sending this one late as I’m traveling this week but hope you enjoy it!

Here are 3 new deals we found this week for you to check out.

If you’d like to get the full list of 8 deals then you can subscribe to the paid version towards the end.

Let’s explore!

Estimated Reading Time = 5 minutes

πŸš€ Startup Spotlight

Discover profitable startups and side-projects.

πŸ’° Asking Price: Open To Offers

eCommerce business with a full decade’s 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

βœ… Key Highlights

  • Revenue: $137k

  • Profit: $51k

  • Margin: 37%

  • Multiple: 3.73x

πŸš€ 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.

🚩 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.

πŸ’° Asking Price: $500,000

Shopify app for A/B testing shipping rates and free shipping thresholds

Type: SaaS

βœ… Key Highlights

  • $$130,000 in TTM revenue

  • $110,000 in TTM profit

  • $11,000 in revenue last month

  • $9,300 in profit last month

πŸš€ 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.

🚩 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.

πŸ’° Asking Price: $175,000

Dog accessory DTC brand.

Type: eCom

βœ… Key Highlights

  • $406,531 in TTM revenue

  • $73,579 in TTM profit

  • $28,382 in revenue last month

  • $2598 in profit last month

πŸš€ 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.

🚩 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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