Ref.AN007 Location RelocatableAsking Price 150,000Confidential offered for sale | |
Asking price includes:
Turnover of £300,000
Gross profits of £120,000 per annum
Website with full e-commerce facilities
Good management information systems
Extensive, loyal nationwide customer base
Excellent growth and expansion opportunities
Excellent reputation for customer service
Suppliers for most major manufacturers
Leasehold premises – if required
Trusted and respected name
Very wide product range
Training and handover
Steady growth pattern
Advertising
Goodwill
Finance available to buy this business
subject to status
All regulated business is passed to independent financial advisors who are regulated by the FSA | | Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA | Business profile: | Established in 1991 and under the stewardship of the current Owners for just over a year, this business has developed a strong and loyal following amongst consumers and small businesses alike for the online purchase of inkjet cartridges, inkjet consumables and laser toner cartridges. For anyone with an inkjet printer this is the site to visit, with all of the major manufacturers represented, from Canon through to Xerox including Hewlett Packard, Epson, Lexmark and Dell, to name just a few, in between. With large stocks readily available delivery is prompt and very reliable with all orders received before 3.00pm despatched the same working day.
Supplying mainly to home users, this business also services small and medium sized businesses of every type and has established a very good presence within the education sector – supplying schools and colleges throughout the UK. Whichever product is supplied, the commitment this business has to building supplier-customer relationships ensures its customers are always offered quality products at very competitive prices. All products are fully guaranteed and if a customer is not fully and completely satisfied with any product, this business offers a no quibble replacement or full refund whichever is preferred.
Not surprisingly for an e-commerce based business this business’s website performs exceptionally well in all the major search engines for all appropriate search terms. Friendly advice and assistance is readily available and the site ensures not only that purchasing online is as easy as it could possibly be, but also that the business itself can be easily managed through updates to the website - adding and de-listing of product, price changes, changes to product specifications etc.
This is a very well managed, easy to run business which has grown organically – by the simple process of attracting customers and retaining them by offering a wide range of competitively priced product, but above all ensuring high levels of service and hence customer satisfaction. With turnover in the current year of approximately £300,000 generating gross profits of £120,000 with low overheads and a significant repeat purchasing customer base, this is an excellent opportunity to acquire a very well established, portable business operating in a very profitable, niche market sector.
Key strengths:
This is a very consumer centric business, offering a wide range of product from all of the top manufacturers. Its web-site has been developed with ease of use for the consumer the prime consideration. Locating the right product couldn’t be easier and assistance is always available to help a customer find a suitable alternative or for the business to source additional product if it isn’t available on the site. Although an e-commerce site, the business welcomes contact via e-mail, phone, mail and fax.
This is a very popular business. It has an e-mail database of approximately 27,000 customers who have at some stage been in contact with this business – and in the vast majority of cases have purchased – 8,000 of which are considered to be currently active. Average transaction values are in the region of £30.
Employing up to date site optimisation techniques the business performs very well in all of the major search engines for all appropriate search terms. Equally effective techniques have been employed to ensure the site is as user friendly as possible not only for customers, but also for the site administrators for changing, updating etc and generating management information.
Operating solely as a web based operation, this is a very portable business. As such it would make an excellent add-on to an existing operator within its current or an adjacent business sector or as a stand alone investment for an owner operator looking to run his or her own business for the first time.
Key opportunities:
Having established this business as a leading on-line retailer of inkjet cartridges and consumables, there is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's products, combined with a capacity to increase turnover, a new owner contributing fresh ideas, will have every advantage of building on an excellent platform.
A particular opportunity lies in broadening the product range into other computer consumables – printers, CD labelling, CDR media, PC software, Cables and accessories – even paper, for example as well as possibly extending into sales of DVD writers, digital cameras and photo printers for example.
Further work could be done in the area of search engine optimisation and web advertising, where all work in this regard is currently done in-house, to improve even further this business’s performance in the rankings. Additional marketing effort - increasing participation in Affiliate schemes for example, would also have a significant impact on turnover and profitability.
| Premises:
The business currently operates from well suited premises of approximately 600 square feet. Rent is £8,100 per annum on a short term rental basis. The premises can be used for other purposes by one of the current Owners of the business and the business is therefore immediately re-locatable. | <>Advertising and marketing:
Not surprisingly for an e-commerce based business the vast majority of marketing effort is targeted at the Internet, with Google adwords being the largest investment.
This business also participates in a small number of Affiliate Schemes – an area that could be improved as well as free gift and discount led promotions – directed at its e-mail database of current and former customers.
By far its most cost effective marketing however is the strong word of mouth recommendation this business enjoys, testimony to the high levels of customer satisfaction this business delivers.
Hours of operation:
Although as an e-commerce site this company is open for business 24/7, the actual hours of operation are currently between 8.30am and 6.00pm, weekdays only, though it is envisaged that these hours could be reduced to 6 hours per day enabling order fulfilment to be undertaken on a part-time basis. | | | Financial profile: |
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Growth has been steady. Projected turnover for the current financial year is £300,000 generating Gross profits of £120,000. | Employees:
The Managing Director/Owners of the business are completely divorced from its day-to-day running contributing no more than an hour and a half per week of their time in total. The business currently employs just one person in an administrative and order fulfilment role. | Support and training:
The current Owners will provide all necessary training and handover to ensure a smooth transfer of the business to new Owners, although a swift and easy transition is envisaged. | Reason for sale:
The current Owners wish to pursue other non-related business interests and pass this business on to new Owners to build upon the firm foundations already laid. | | Turner Butler Disclosure Statement: This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business') The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business. For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions. Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler. You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler. Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision. Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information. This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006 |
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