Jameson CampAdvising on AI and GTM | 2x Exits

Follow for more #ecommerce #buyabusiness #entrepreneurship

10 Jul 2024 · 1 min

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In this short pitch, the speaker presents an 11‑year‑old e‑commerce brand that sells power tools and is currently on the market. The business generates $388,000 in free cash flow, translating to over $30,000 of monthly profit for the owner. The asking price is $1.6 million, which is SBA‑approved, requiring a 10 % down payment of $160,000 that can be sourced from the buyer’s own funds or outside investors. Key performance metrics include a $150 average order value, 61 % of revenue coming from Amazon, 34 % from the company’s own website, a 29,000‑strong email subscriber list, and a 45 % repeat‑customer rate. The speaker emphasizes that the business is fully internet‑based and can be operated remotely. The video ends with a call to follow for more internet business deals and improvement tips.

Chapters

Today's internet business for sale is an 11-year-old e-commerce brand that sells power tools. The company currently makes $388,000 in free cash flow. That's an easy $30,000+ in the owner's pocket every single month. Let me show you a quick deal structure you could put together to buy this business. They're asking for $1.6 million, but it's SBA approved, so you need 10% down, $160,000. You could either have that $160,000 yourself, you could bring it from outside investors. So in this scenario, you're spending $160,000 to bring in $380,000. But let's quickly look at some of the stats of this business and why it might be compelling. It's got an average order value of $150. It gets 61% of its business from Amazon and 34% of its sales directly on its website. It also has 29,000 email subscribers, and 45% of those customers are coming back again and again. Don't forget, it's an internet-based business, so you could run this from pretty much anywhere. Follow for more interesting internet businesses for sale and how to improve them.