This Is Bizness: The Thirteenth One

Welcome to another edition of This Is Bizness, your weekly newsletter that explores the world of buying and selling small businesses outside traditional channels.

Today we are going to take a look at a Collage App for Instagram making $150,000 in revenue in just 3 days of the year. The app allows users to create collages of their top Instagram posts of the year.
Every year on New Year’s Eve, millions of Instagram users, influencers, and celebrities share their collages using the app.

Without further ado, let's dive right in 🤿 

Collage App for Instagram making $150,000 revenue in 3 days of the year

Asking Price: $190,000 (1.3x profit, 1.1x revenue)

Overall: 7.5/10

Today's business is a mobile startup based in Uruguay that has developed a collage app for Instagram. This app allows users to create collages of their top Instagram posts of the year.

It has grown exponentially into the biggest Instagram trend, reaching the top charts of the App Store for the past 3 years on New Year’s Eve. Every year, millions of Instagram users, influencers, and celebrities share their collage using the app, including Kylie Jenner and Cristiano Ronaldo.

It has generated $174,000 in revenue and $15,000 in profit over the last 12 months, with a total revenue of over $1 million in the past 5 years.

Business Model: One-time in-app purchase model, with a price of $2.99. Potential to convert this into a subscription-based model.

The app has proven to be highly viral, as every time a user or influencer posts their collage, it serves as an "organic ad" reaching all their followers.

Competitors: Various competitors on the app store since they have no real technical moat.

Growth Opportunities:

1. Converting the one-time in-app purchase into a subscription

2. Cross-selling the audience to another app

3. Upselling other image/content tools for Instagram

4. Implementing social media marketing and SEO strategies

Adding new product features, increasing content marketing efforts, and raising prices are also potential growth avenues.

Risks:

1. For many years, the main risk of this app was Instagram launching its own version of “A Year in Review”. However, last year was proof that this app will continue to be used regardless.

   Instagram launched “2022 recap”, but revenue last year wasn’t impacted.

2. The uncertainty of its continued success and growth. The app's revenue is heavily reliant on its viral nature.
   There is no guarantee that it will continue to generate substantial revenue. Success is dependent on luck which can be unpredictable and subject to change.

3. The business model relies solely on a one-time in-app purchase, which may limit its revenue potential. While there is potential to convert this into a subscription model, success cannot be guaranteed.

4. There is a fair bit of platform risk with the reliance on the app store and Instagram.

Tech Stack: The app is built using React Native and is hosted on AWS.

Asking Price: $190,000 (1.3x profit, 1.1x revenue)

Overall, this business has shown impressive revenue and profit numbers, with a strong growth potential. It has a solid business model and a viral marketing strategy through user-generated content.

The app has established itself as a popular tool for Instagram users, including celebrities and influencers. However, there are risks to consider, such as potential competition from Instagram itself launching a similar feature.

Ratings:

Growth & Scalability: 4/5 (High growth potential, established user base)

Risk: 3/5 (Competition and potential risk from Instagram)

Price to Value: 3/5 (Justified price, solid revenue and profit)

Innovation & Tech: 3/5 (Utilizes popular tech stack but not highly innovative)

Overall Rating: 7.5/10

Bizness Pros:

- Strong revenue and profit history

- Established user base with the potential for growth

- Viral marketing strategy through user-generated content

- Potential for additional revenue streams and upsells

Bizness Cons:

- Potential competition from Instagram or other similar apps

- Reliance on the popularity of the "collage trend" on Instagram

Acquiring this business would provide the new owner with an established app with a dedicated user base and potential for growth.

It would require continued marketing efforts, innovation in product features, and staying ahead of potential competition. However, considering the app's history and solid revenue, it presents a promising opportunity for investment.

Link to the listing: https://app.acquire.com/startup/njlp6698dfeUp0X2uMpwSvuDEhH2/5CI4N7ZClksN4LieklKJ?source=marketplace 

If you have any feedback, suggestions, or specific businesses you'd like us to analyze in the future, please don't hesitate to reach out. Your input is essential in shaping the content of This Is Bizness.

Thank you so so much for taking time out of your busy day to read This Is Bizness. I appreciate and love every single one of you 😊 

Alrighty see you guys next week 🖖 

Dev

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