This Is Bizness: The Eleventh One

Welcome to This Is Bizness: The Eleventh One

Welcome to another edition of This Is Bizness, your weekly newsletter that explores the world of buying and selling small online businesses.
Today we are going to take a look at two mobile app businesses available for <$25,000
The businesses I have chosen are all very unique and niche use cases of mobile apps with not a lot of direct competition. They both have social proof with many downloads and great organic reviews.

Without further ado, let's dive right in 🤿 

1. Mobile App with over 1 million downloads, available for $6,000

Today we’re going to look at a mobile app that provides users with both simple and advanced options to block internet access on Wi-Fi and mobile connections.

Founded in 2020, it has 1 million downloads, this app has generated $1,600 in revenue and profit in the last 12 months, with $100 in revenue and profit in the last month.

Business Model: The app generates revenue through Google Ads. Users can download the app for free, and the revenue comes from advertising displayed within the app. The app is quite lacking in the monetization avenue.

The business has been bootstrapped.

Asking Price: $6,000 (3.8 x annual revenue)

Growth & Monetisation Opportunities:

1. Offer a Premium Version: Create a premium version of the app that offers additional features/ enhanced functionality or an ad-free version of the app. Users can pay a one-time fee or a monthly subscription to access these premium features.

2. Partner with VPN: Collaborate with a VPN service provider to offer a bundled package. This could be super interesting with other VPN apps on Acquire

3. New features can be added, however, I feel adding features is unnecessary and the new owner should focus on monetization.

4. Data Analytics and Insights: Utilize the anonymized data collected by the app to provide valuable insights and analytics to businesses or researchers. (Very few will have the ability to monetise in this way)

5. Affiliate Marketing: Partner with relevant companies or websites that offer products or services related to internet security or technology. Promote their products through affiliate links within the app.

6. Implementing some digital marketing efforts, like social media marketing and some effort on SEO, can help attract more users and increase revenue

Selling Reasoning: The current owner is selling the app because they do not have the time to maintain it. There is not much maintenance required for this app, so this does not make as much sense.

It was founded in 2020 and the owner probably just wants to cash in.

Ratings:

• Growth & Scalability: 3/5 (Room for different monetization avenues and growth through marketing efforts, Easily scalable)

• Risk: 4/5 (Fragmented market and dependence on Google Ads for monetization)

• Price to Value: 3/5 (Fair asking price compared to potential but not compared to revenue)

• Innovation & Tech: 2/5 (Utilizes Java, but no unique tech)

Overall: 6.5/10

Pros of investing in this startup:

1. Established user base with 1 million+ downloads

2. Potential for growth through new features and marketing efforts

3. Affordable asking price compared to revenue

4. Revenue and profit generated in the last 12 months

Cons of investing in this startup:

1. Competition from Internetguard

2. Dependence on Google Ads for revenue

3. No unique technology or innovation

Overall Analysis: This mobile app to block internet access presents a promising investment opportunity. With a large user base and potential for growth through new features and marketing efforts, it offers good value for its asking price.

However, it is important to consider the lack of a moat and huge competition along with its complete reliance on Google Ads for revenue. With proper attention and creative monetization, this app has the potential to thrive in the market and could be a steal.

Check out the listing here: https://app.acquire.com/startup/uKtDyzl7aJhgXSTaiUFAhb3O4h32/tBTjqYLca3f5t6xtq46f?source=marketplace 

2. Photo Enhancement Mobile App

The next business is a mobile app that uses AI to improve the quality of photos and fix blurriness by helping users enhance their blurry photos.

Founded in March 2023, the business has been completely bootstrapped and it has generated $2,000 in annual revenue and $1,870 in profit.

Business Model: The app generates revenue through monthly subscriptions and in-app purchases. Users can choose from different subscription plans to access enhanced features and tools.

Asking Price: $7,500 (3.8 x Annual revenue)

Growth Opportunity: The previous owner identified digital marketing, social media promotion, and app store SEO as key areas of growth. However, I’m not sure if this will generate returns, especially in the short term.

The market is very crowded and it’s hard to stand out. There are lots of people using and willing to pay for it since it has made almost $2,000 in profit in just 6 months.

I think that there’s lots of potential for this app to grow steadily over the next 1 year and allow for a larger exit at that time.

Ratings:

• Growth & Scalability: 3/5 (Potential for growth with digital marketing and social media promotion)

• Risk: 2/5 (Low risk due to profitable TTM revenue and lack of financial ties to investors)

• Price to Value: 4/5 (Reasonable asking price in relation to revenue)

• Innovation & Tech: 3/5 (Utilizes advanced technology for photo enhancement)

Overall: 7/10

This mobile app startup has shown promise with its profitable revenue and unique features for photo enhancement. It has the potential for growth through effective digital marketing and social media promotion. However, the market can get crowded fairly quickly with lots of similar apps.

The asking price is reasonable, offering potential buyers an opportunity to acquire a business with existing revenue streams. However, the business will require additional marketing efforts and user acquisition skills to fully capitalize on its potential.

Pros of Investing:

1. Profitable since start

2. Unique features for photo enhancement

3. Various growth opportunities

4. Reasonable asking price

Cons of Investing:

1. Requires significant marketing and user acquisition efforts

2. Limited track record and market presence

3. Early in the AI game

Acquiring this business offers potential for growth and expansion in the photo enhancement space. With a strong foundation and innovative technology, the business provides a valuable solution for users looking to improve the quality of their photos. However, it will require focused marketing efforts and expertise in user acquisition to fully realize its potential.

Check out the listing here: https://app.acquire.com/startup/IgSmzRHHYxVjD0KtNdVGI9xscKy2/Ryab8tYWq4XWRIY7NGtl?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

P.S. Stay connected with me on Twitter and LinkedIn for daily updates on small business news and content. And don't forget to subscribe to This Is Bizness to receive our weekly newsletters directly to your inbox.