This Is Bizness: The Second One

Welcome to This Is Bizness: The Second One

Just wanted to thank you guys for reaching 50 subscribers!

Going to dive right in this week 🤿 

Today we are going to take a look at three businesses available for <$30k. The businesses I have chosen are all super unique and have proven profitability. I genuinely believe ANYONE could run them without having any specialized knowledge besides some good business acumen.

1. eCommerce brand with $700k revenue in first 7 months

In today's world, where mental health is a growing concern, self-love has become an increasingly important aspect of people's lives. That's where this profitable eCommerce business, which specializes in selling self-love books, comes in. The brand focuses on providing books that ask thoughtful questions and provide self-reflection experiments.

Asking Price: $30,000 (0.5x Profit Multiple)

Business Model: B2C with $20.95 product price + $5.55 shipping. Average order value= $33.67. Established a little over a year ago with $750,000 revenue and $82,500 profit with last month's revenue of $74,138 and profit $5,235.

Marketing Strategy: Heavily reliant on Facebook and TikTok ads for the majority of its traffic, targeting mainly US customers. Variety of opportunities with an organic marketing expansion and utilization of influencers along with an expansion to new markets and the product line. With over 24,000+ happy customers, this is a clearly well-established business with a unique product thoroughly enjoyed by its users.

Growth & Scale: 4/5 (Growing genuine problem, Potential supply chain issues at scale)

Risk: 3/5 (Established user base, Currently just one product, Ad reliant)

Price to Value: 3.5/5(Proven Profitability, Product-market fit, Require consistent Ad spend)

Innovation & Tech: 2/5 (Unique product but similar to many competitors)

Overall 8.5/10

Great opportunity to buy a well-established business solving a rapidly growing genuine problem. It has built a strong user base and product market fit with a unique product that is enjoyed by its users. However, the business is heavily reliant on Ad spend for traffic and most of its sales. While it has proven profitability, its profit margins are quite low at 10% due to high COGS and ad spend. It has lots of potential in exploring new markets and expanding the product line. It has a great operational setup with many automated systems and a fully operational supply chain and delivery fulfillment partners.

2. Profitable Mini-Game Development Studio

Next up is a super cool profitable game development studio that fully outsources all game development. It sells various PC games, from action to adventure, on the popular platform, Steam. It includes 20 existing game IPs with a proven track record of success.

Asking Price: $29,000 (1.7x Profit Multiple)

Business Model: Wide range= $2-$10. Offering high-quality affordable games has attracted a loyal customer base. Founded Aug 2021, in the last 12 months, it has $19,000 in revenue and $17,000 profit.

Game Development: Outsourcing game development to external teams. Allows you to maintain oversight of creative vision and control quality, while keeping development costs low and eliminating technical barriers for new owners.

Growth & Scale: 4/5 (Rapidly growing industry, Outsourcing means scalable)

Risk: 2/5 (Diversified income, Existing IP: 20 games, Established user base)

Price to Value: 4/5 (Proven Profits, Well built Operations & Monetization plan)

Innovation & Tech: 2/5 (Unity engine, Similar competition, Outsourcing=Key)

Overall 9/10

I absolutely love this business! Being a well-established business it has many strengths. It has a strong base of loyal users, existing IP of 20 games, and a history of proven profitability with consistent revenue. With fully outsourcing game development it has endless potential and is a solid foundation for continued growth in a booming industry. However, it is in a highly competitive market that requires constant attention.

For me, the highlight is its well-thought-out systems for some of the most crucial and challenging aspects of business. It has a tested & proven business plan, with a clear target market and pricing strategy along with great operations in place by outsourcing game development, eliminating new owner's technical barriers.

3. Mobile App with 300k Organic Downloads

This start up hopes to solve a common challenge for Whats App users. Their mobile app bot converts audio messages to text, making communication more convenient for users.

Asking Price: $30,000 (4x Profit Multiple)

Business Model: Free with in-app purchases for additional features. With 0 ad spend they have reached over 300k downloads completely organically. Founded in Jan 2021, last year they generated $9,425 in revenue and $7,472 profit.

Growth & Scale: 2.5/5 (Evergreen need, Reliable revenue, Easily scalable)

Risk: 3.5/5 (Reliant on single revenue stream and App stores, Steady profit)

Price to Value: 3/5 (High profit multiple, Proven Profitability and Demand)

Innovation & Tech: 4/5 (Unique solution that clearly solves the problem)

Overall 7.5/10

Another great business addressing an evergreen problem that Whats App users will always need fixing. They have a unique solution that easily and effectively solves it. The product is clearly liked by the market evidenced by its huge organic download numbers. However, there is not much potential for high growth as it is a stagnant industry that will provide steady demand and a reliable consistent source of revenue. It also belongs to a highly competitive market with low barriers to entry so constant maintenance and updates are required. Overall its organic growth speaks for itself as a low-maintenance business with a reliable source of income.

On a more personal note: I just got done with finals for this semester and going to be traveling for a week before starting my summer internship in Hawaii with Symbrosia. Not sure about this, but if you guys would like to see more personal content, reply and lmk!

Thank you so so much for taking the time to read This Is Bizness: The Second One. I am grateful for your support and appreciate every one of you for subscribing. (Can’t believe it’s 50 of you guys already 😃)

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