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  • #18 - Dog accessory business for a bargain ๐Ÿ’ธ

#18 - Dog accessory business for a bargain ๐Ÿ’ธ

๐Ÿ‘‹ Hey builders!

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

Sending this one late as Iโ€™m traveling this week but hope you enjoy it!

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

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

Letโ€™s explore!

Estimated Reading Time = 5 minutes

๐Ÿš€ Startup Spotlight

Discover profitable startups and side-projects.

๐Ÿ’ฐ Asking Price: Open To Offers

eCommerce business with a full decadeโ€™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

โœ… Key Highlights

  • Revenue: $137k

  • Profit: $51k

  • Margin: 37%

  • Multiple: 3.73x

๐Ÿš€ 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.

๐Ÿšฉ 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.

๐Ÿ’ฐ Asking Price: $500,000

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

Type: SaaS

โœ… Key Highlights

  • $$130,000 in TTM revenue

  • $110,000 in TTM profit

  • $11,000 in revenue last month

  • $9,300 in profit last month

๐Ÿš€ 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.

๐Ÿšฉ 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.

๐Ÿ’ฐ Asking Price: $175,000

Dog accessory DTC brand.

Type: eCom

โœ… Key Highlights

  • $406,531 in TTM revenue

  • $73,579 in TTM profit

  • $28,382 in revenue last month

  • $2598 in profit last month

๐Ÿš€ 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.

๐Ÿšฉ 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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