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Nutritional Supplement Brand And Three Websites For Sale
- Los Angeles, California - South, United States
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- Business description
- 4 1/2 old Nutritional Supplement brand marketing 8 niche products with well positioned and highly ranked web sites (3), recently SEOptimized(working towards 1st page placement in google for 3 highly competitive keywords) We contract out the manufacturing of our own proprietary formulas, then we market and distribute them worldwide. We have distribution in a few countries overseas. We have had an increasing demand by our distributor in Eastern Europe who is currently purchasing 1000-1500 bottles of a single product every 6 weeks $11-17k gross sales/ $6000-9000 gross profit)for over 24 months now. The same distributor is finishing local registration of 2 additional products from our line in the same category, as we work on the documentation for the 4th product. The Eastern European distributor has identified the cost per acquisition for each one of these 3 new products and forecast their total sales volume to be in the neighbourhood of the our current best seller in a short term. We should be doing approx $35-40k/month in sales within 6-12 months after the launch of all 3 new products before the year end. All overseas business is prepaid. We have been working on improving SEO and Affiliate networks which is close to $20k value thus far. Our average online sale is $80/ticket.
Business has generated an average of $130k in sales per year, and has a trend of 360-$480k for 2009 purely from organic sales growth at 60% GP. It has steady reorders. The business has not been profitable maily because profits have been reinvested to grow product line and to run test marketing campaigns. Also, onwer has maximized write offs to be able to maintain the business. However, it can easily become profitable with some adjustments at current sales levels. We have started a product line rationalization to keep the best selling items to be able to refocus our marketing on our core items. Product line was recently approved and purchased by Amazon.com and has been selling on their site. Our lowest mark up is 2.5 (wholesalers) to a maximum of 11 times cost(in online retail), with a great medium of 5-6 times. We have mapped out the road of success, especially in respect to niche markets where the products should be distributed with a coherent printed and on line marketing campaigns to support. The company currently needs capital to run a media test (apprx $50k) to then subsequently $300k to execute its printed and online marketing campaign which shall bring the online sales to a projected $1.2M within the next 12 months. Company also needs to make some changes regarding manufacturing standards in order to be registered in some countries where there seems to be an ever growing demand for our products. Some small changes in packaging will improve many branding and marketing aspects of our products. Estimated upgrades in the neighbourhood of $45k, which shall open the doors for the Middle East markets. The company has also had some private label and custom manufacturing business though it is not our main focus, as that is a price driven business for the most part and profit margins aren't near as good as selling our branded products. The manufacturing resources used (raw material suppliers, manufacturers, packagers, etc) are all available and part of the good will. This is a perfect business to run from home, it requires a marketing budget for further growth beyond the described and expected organic growth and could be suitable for a wide variety of prospect buyers such as entrepeneurs, doctors, online internet marketing firms, clinics, pharmacies or health food biz trying to create vertical integration and increasing their profitability on the sales of supplements. The business comes with a database of reliable supplement manufacturers with whom we have had a pre existing relationships. Our online customer base has approximately 1000 people who have purchased an average of $80/sale.
Financials are not audited and business accounting has been run on a cash flow basis. Income tax returns are available as well as other documents upon signing a NDA.
This is nearly 5 years of work with an identified road to success!
The founder is willing to sell 100% of the business and stay in management on a consultancy basis to help run the business and ensure success. Investment opportunity and partial sale also available, terms to be determined.
- General information
- Years established:begining of 2004
- Employees: 1 full (3 part time subcontractors)
- Trading hours: minimal
- Home based: This business can be run from home.
- Relocatable: This business can be relocated.
- Location:Outsourced warehouse and online based
- Expansion potential:Enormous. Online and overseas wholesale distribution is increasing overtime. Some online marketing investment as well as product manufacturing upgrades and minimum web-development shall make a great impact on the business within 6-12 months.
- Competition / Market:There are several brands of nustritional supplements. We are in a niche market and have identified tremendous opportunities within the online market as well as certain wholesale opportunities overseas where we have positioned ourselves very well.
- Support & training:Will train new owner fully
- Reasons for selling:I m a shareholder/executive in another similar business which has been funded and taken off. It is a scalelability decision, I don't have the time to raise the money needed to put into this business and run it on a full time basis. I am looking for some one that can come in as a synergistic partner, with capital and online marketing expertise so I can consider staying on board, or someone (or an institution) that can purchase the business on its entirety and to whom I can consult to ensure proper execution.
- Financing available?75% Upfront, remaining 25% after training and transitioning after 90 days
