Established Processing/Packing/Internet sales business

26 days ago

Location:
Regional QLD > Queensland

Investment level:
$148,000 (Negotiable) + SAV

Type:
Business

Industry:
Miscellaneous > Green & Eco friendly

Private Seller

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Summary

Owner Retiring - Online business processing and selling diatomaceous earth. Located North Queensland, this profitable business can be comfortably run part time and can be easily relocated.

Revenue

$212,000 pa

Rent

$0 pa

Expenses

$129,000 pa

Net Profit

$83,000 pa

Location Details

Currently located in FNQ on owners property, easily reloacted, would suit person with existing premises. requires approximately 150 sqm of space for processing and storage of product. Access to main transport desireable.

Potential

This profitable business can be comfortably run part time by one person. The current owner is retiring and has not actively engaged with social media or marketing efforts.
The addition of similar products and active marketing through social media and better use of the existing customer email base of over 4000 would see sales expanded.
The business is simple to operate and has opportunities for someone wanting to get an immediate income with prospects for expansion.

Skills

Basic computer skills for operating the online order process.
Social media and marketing skills may be an advantage (this can be outsourced)
Ability to oraganise freight and shipping of product.
Some mechanical aptitude for equipment maintenance and operation (could be outsourced)
Knowledge of the product will be required to answer queries. (current owner willing to provide support for at least 6 months on line if required.)

Hours

Approximately 15 to 30 per week. Currently orders are fullfilled on Monday Wednesday and Friday.

Lease

Current Owner uses own premises. Recommended shed needs to be about 150 to 200 sqm.

Employees

Can be operated by one person, however you might choose to have someone doing the processing and packing as this can involve packing and moving up to 20kg bags.

Reason for Sale

The current owner is retiring and moving where it is not practical to relocate the business.
The current location is not avaiable for sale.

About the Business

The business purchases Diatomaceous Earth (Natural amorphous silica) in bulk and then processes this product into various grades and packs it into different size bags for sale through its own online shop and eBay with some product is sold in bulk to overseas buyers.

Diatomaceous earth has a wide range of uses and the products are sold both to end users and resellers (pet stores, ag stores, health food shops etc). Growth is being driven by consumers.
Environmental damage caused by chemicals is becoming much more conscious in the minds of many consumers who are looking for natural alternatives.

There is no direct selling involved (unless you want to get out there), Advertising is done on Google, and also naturally by being close to the top of search engine results.
The Website backend is provided by Neto and is fully automated to take and process orders. (Full training and online support will be provided by the current owner).
The site has been developed to be attractive to consumers who want a reliable, professionally looking and operating website that gives them confidence to order.

The business does not run accounts, all orders need to be paid prior to shipment, this totally avoids bad debts! (I don't recommend changing this strategy), I don't believe it has lost us any customers and it allows us to pay our debts promptly. The business current uses Xero for accounting however this will not be transferred with the package. If you don't currently have an alternative I recommend subscribing at $65 per month.

The processing equipment is included in the price and consists of sifters, and vibration loading bins as well as a hammer mill, scales of various sizes, bag sealing equipment and shelving.

All order history, emails, client details, domain names, etc will be transferred to the new owner
Apart from physically moving the equipment there would be no operational issues involved.
Everything is done online and is operational 24 hours a day. There are a few phone calls and email enquiries each week (I can assist with answering these until the new owner is confident to take over).

There is a full set of unaudited results for the last 4 years together with with a brochure providing greater depth about the product and the business. This is avaiable to prospective purchasers on signing a confidentiality agreement.

History

The business was started in 2013 selling through Ebay a few orders per week and has grown to its current size, Averaging over 170 orders per month . The past 3 years, has seen an increase in the number of stockists, who order regularly and are obviously developing their own clientel.

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