Import & Wholesale Distribution - Home Based For Sale

Business description

This well established import & distribution business has been successfully operating since 1983. It imports a limited range of top quality polished stones and products, such as carvings and jewelry, which incorporate such stones. The business has mostly been operated from a home office and it allows the owner to travel to exotic destinations and around Australia in a very cost effective manner. Carvings and jewelry items such as pendants, bracelets and necklaces are sold to retailers along with highly polished cut stones and tumbled stones. Some mineral specimens are also distributed. The products are sourced from the US, Brazil, South Africa, Hong Kong and China.

When this home-based business was purchased by the current owners in 2006, it hired no staff, there were no office overheads, and it was highly profitable and growing strongly. Since taking over the business, the new owners moved into an office/warehouse and hired a sales rep. While sales have been maintained, operational costs have escalated, leading the current owners to the conclusion that the business should again be run from home.

The Vendor is selling the business to pursue other career objectives, and the very realistic asking price has been set to effect a quick sale.

Growth opportunities for this business are excellent as no marketing has ever been carried out. The current owners increased sales to $458,167 in 2008 and have budgeted sales of $500,000 for 2009.

Rarely is the opportunity presented where a business that can be run from home and with such an outstanding reputation and growth potential is offered for sale. And no additional money needs to be spent.

Included in this offer are the following:

* 100% of the business assets of the business;
* A business with a well established and broad customer base and one that is poised to enter a further growth phase;
* A well-established trading name with a reputation for quality and outstanding service;
* An extensive client database;
* The ownership of the necessary plant and equipment to conduct and grow the business, with an estimated replacement value of $63,000;
* The knowledge and trade experience of the current owner who is willing to provide any required training during a transition period;
* The goodwill of the business, built up over 25 years.

Operations:

Current hours of operation are flexible as this business can be operated from a home based office.

Market / Customer:

The business currently services the following categories of clients:

* New Age retail shops in Victoria, New South Wales, Queensland, Tasmania and South Australia;
* Gift shops shops in Victoria, New South Wales, Queensland, Tasmania and South Australia.

Products:

The business wholesales an assortment of imported products.

Products offered include:

* Highly polished cut stones, tumbled stones and crystals;
* Jewelry items such as pendants, bracelets, and necklaces;
* Polished stone figurines, hearts, Buddhas, angels, generators, obelisks, spheres and pyramids;
* Massage Wands;
* Meteorites;
* Mineral specimens;
* Fossils.

The stock value ranges from $120,000 to $150,000, depending on the season.

Premises:

Presently operated from a vendor-owned office/warehouse, this business could continue to be run in this fashion or could be operated from a residential garage in any location.


Management / Staff:

The current owner has one sales rep who covers the NSW and Queensland markets. The vendor generally works 5 days per week from home and from the office/warehouse. The previous owner traveled to Queensland and NSW twice a year to visit his customers and fill their orders.

The Vendor will provide any required training and assistance during a suitable transition period.


Growth Opportunities:

This business has outstanding growth potential if managed efficiently and if attention is directed towards growth strategies.

Although currently operated from an office/warehouse, the business traded for all but two years of its 25 year history from a home office, using spare garage space for its stock holding. The current owner elected to modify the business operations, and in doing so, maintained sales but greatly increased costs. This business is ideally suited for a home-based operation, and can still be grown considerably as such. As a “one man” operation, it has generated net cash flows exceeding $250,000 pa. Operated with “a couple”, the business has the potential to grow rapidly while providing outstanding deductable travel experiences for its owners.

In order to grow its position in the marketplace, the business could implement marketing strategies designed to better focus on its target market segments, including to the existing 300 strong database. No marketing has been carried out to date.