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Internet Based Womens Linen Clothing Retailer Superb Highly Valued Organic Search Engine

Undisclosed Relocatable
Internet Based Women’s Linen Clothing Retailer –Superb Highly Valued Organic Search Engine Listings- Ref.AB202 Location Relocatable Asking Price O.I.R.O. £250,000
BUSINESS FOR SALE ADVERT DETAILS

ADVERT NUMBER : 56104
ADVERT IMPRESSIONS : 49,246 TIME(S)

 
BUSINESS SECTOR: Retail
TRADE TYPE: Cloths & Fabric Shops
SALE: Agent Sale

LEASEHOLD:

£250,000
 

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BUSINESS DETAILS:

Business profile:
This reputable and now well established business specialises in the online retail of womens clothing, the majority of which is manufactured using natural fabrics. The core business is for linen based womens clothing and the business has developed a range of classic lines to serve the mid-range market sectors all year round. Typical customer profile this business serves are geneally the A-B-C1 females in the 35 years+ bracket.

All revenues are generated by online sales via its own very impressive website that the company has built and developed over time, so much so that it enjoys highly valuable organic listings for many many key terms within the major internet search engines. Items are delivered utilising a third party delivery service. Average item value is circa £57. Typical order value is circa £112.00. The company experiences very low return rates.

*The business is currently run as a “cottage industry” and the vendor has kept it at its current level through choice. It is run from a home office envirionment and as such overheads are low. This also means the business is totally portable and scaleable. Its customer base, and supply base for that matter, has grown year on year and it enjoys good levels of profitability. The business enjoys some 20% of return custom. It has low fixed costs and is simple to run. Approximately 12% of sales are to overseas customers. The majority of sales are retail which ensures the business enjoys good levels of profitability.

The business model has been put in place. It is ripe for a new owner to utilise the superb and highly valuable organic website positioning this company has developed to either bolt on to an existing operation or for a new owner to scale up the business to maximise the many opportunities already at its disposal. The cost to try and achieve the organic rankings this business enjoys could probably far exceed the asking price for this company!

Equipment:

The business has invested in IT to ensure the business runs effectively and profitably. The website offers customers various secure payment methods and can process transactions securely via all major credit cards.

Customer Service:

The business provides customers with a comprehensive level of customer service and this is evident in the loyal customer base it enjoys. The website is easy to use and provides customers with a currency converter, international size charts, what to wear guides and a simple returns policy. Even though it is an internet based business the company strives to give customers that extra personal service with speedy response. All goods are individually pressed and packaged and sent out with an individual letter to ensure complete satisfaction. Items can be delivered throughout the world.

Key Strengths:

• Highly prized and extremely valuable front page organic multiple listings
• Fully SEO’D website
• Very impressive gross profit margins
• Truly scaleable business model
• Worldwide marketplace
• All year round sales
• Loyal and growing customer base
• Truly portable with very low overheads
• Positive cash flow

Growth and Expansion:

There are many new opportunities available to grow the business as it is a truly scaleable operation. The market it serves is global and the business could certainly expand its product offering further as well as its own sales and marketing activity to achieve greater sales. It could be the ideal portal for a manufacturing base, or wholesale operation for that matter to bolt on as a new route to market if they are not already utilising online sales techniques.

The vendor has kept the business at its current size to stay below the current UK VAT threshold. They also did not want to start employing staff. The foundations are in place for a new owner wishing to expand the business and take it through its next natural period of growth and increased profitability.

The acquisition of this business offers many new opportunities to grow the business in its current form, as it is a truly scaleable operation, or alongside other complimentary existing brands.

Key Opportunities:

As well as the above the business could develop a more comprehensive sales and marketing campaign involving more direct mail (be it e-shots etc) to existing clients and even develop the traditional mail order side more should a new owner wish to do this.

However the key opportunity lies within the organic listing this business enjoys and the traffic this generates. The business has enjoyed on average circa 5,200 unique visitors per month to its website over the last 3 years with each visitor tending to view several pages of content at any one time. This volume of traffic represents a significant captive audience to tap into with a very large spend capability.


Premises:

The vendor runs the business from a home office environment so it is totally portable.

Business Hours:

Website: 24/7
Advertising and Marketing:

The business is very much geared to online sales and marketing. As already mentioned several times the business’s own website enjoys very impressive organic rankings. This positioning provides the company with invaluable levels of exposure and generates significant sales opportunities way and above what this business currently achieves.

Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business currently achieves turnover circa £45,000 p.a. Gross profits circa £31,000 p.a. The vendor has kept current performance below the UK VAT threshold. The value of this business lies within its organic listings and internet positioning. There are many opportunities for significant growth open to a new owner as discussed. Current stock figure circa £40,000.(stock is excluded from asking price).
Employees:

The vendor works on a full time basis carrying out all the administrative and order processing duties. In addition to this the business utilises an external company to maintain the website and its positioning.
Support and Training:

The vendor will provide a comprehensive handover period to ensure a seamless transition and continuity of trading. This should be relatively straightforward based on the current business model.
Reason for Sale:

The vendor believes she has positioned the business now where it is ripe for a new owner to take it on to maximise the potential at it disposal. She has taken the business as far as she wishes and believes it now requires the additional investment to scale the operation up to maximise the opportunities already there. It is understood that the organic rankings/listing this company enjoys would be ideal for a womens clothing business looking to capitalise further within the online sales arena and as such the return on investment should be significant.
   
  FOR SALE
   

REFERENCE:

AB202 / RightBiz
   
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