All prices in USD
$20,000
  • Avg. revenue /month
    $3,591
  • Avg. sessions /month4,106
  • Avg. profit /month
    $400
  • Inventory value
    $7,500

Business Story

Why this business was started

We were interested in the Health food sector and there was no real competition. What we saw was unsatisfactory as the competition was not able to deliver the right range of products: neither too focussed nor too limited. At the same time we had the set of skills required, so it was a simple decision.

The reason of selling this business

We are back to full time demanding jobs and we reckon that we would need 3 to 4hours a day to take it to the next level of profitability ( >$2,000 of profit per month for $20,000 of sales).

What's involved in running this business

Purchase orders through Tradevine (easy) and Xero Sales orders fulfilment through Tradevine / GoSweetSpot Shop run on Shopify (product entered in Tradevine) Identifying products and rotating stocks Quick SEO and AdWorks Writing occasional blogs Managing stocks Best Before dates Relations with customers for any question or issue

This business was founded: over 4 years ago
Time to run this business: approximately 12 hours per week

Traffic and Performance

  • Avg. revenue /month
    $3,591
    Verified
  • Avg. sessions /month4,106Verified
  • Avg. profit /month
    $400
  • Inventory value
    $7,500
  • Profit Margin8%
  • Avg. sales /month110
Other details about profit: Sales and profitability increasing - cash neutral point at around NZD 6,500 of sales per month. Anything above that generates profits as fixed cost covered. We are now making ~NZD 750 per month of profit for about NZD 8,500 of sales. The next step is to reach NZD 20,000 of sales per month (driven by high end supplements) for NZD 2,000 or more of profit. Running with around 1.5% write-off maximum on food (due to sell-by date) as constantly trying new products. This will decrease with increased turn-over. Accounts checks by accountant. Numbers in Xero. NZD converted to USD wherever USD is used. Note that there are still issues in the way Shopify Exchange shows non USD numbers (for instance the average sales graph says $ meaning NZD, some other numbers use $ for USD - ask to get full clarity).
Total revenue
  • $193,938
    • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 221,776Visits
    • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $29
      /month
    • Inventory warehouse
      $0
      /month
    • Domain
      $50
      /year
    • Basic
      $29
      /month
    • Google AdWords, a bit of Facebook
      $140
      /month
    • Various Shopify Aps
      $150
      /month
    • Tax & Accounting
      $40
      /month

    Sale Includes

    • Physical inventory

    • Logo and branding assets

      Contractually - the brand is registered.

    • Personal support after sale

      Support by email and skype (depending on availability) for 4 hours per week for 3 months. Quite happy to help you get this running and roaring. Negotiable. Xero account walk-through

    • Domain

    • Product photos

      As part of Tradevine account

    • Social media

      Total followers2,300subscribers

    • Suppliers

      All suppliers entered in Tradevine with all details, including payment conditions. Ordering is automated via Tradevine (automatically create default order based on stock, review it, press a button and an email is sent to supplier).

    • Mailing List

      2,200subscribers

    Seller‘s Advice

    How to grow this business

    • Move to main focus as high-end health supplements favoured by women, with specific diets as a 2nd focus. Start with good position in Collagens and Proteins.
    • Add more products to reach 250 SKUs
    • Rotate products, a good 30% should be new every year - get rid of slow selling ones
    • Do not try to be a new healthpost, instead push a selection of quality products with a women friendly message
    • Keep moving towards high value light products with low packing volume
    • Limit glass products
    • Keep adding blog entries
    • Regular updates of pages and SEO keywords
    • Run competitions and occasional offers.
    • Use Carro to enlist influencers
    • Spend more on clever Facebook marketing
    • Do not spend much on Google adwords, selectively spend on Google shopping
    • Negotiate better deals with couriers as volume increases
    • Look at 3rd party fulfilment options

    Skills to have

    Understand the health food segment well - you must be able to show knowledge to the customers so that they can trust you. Your ability to handle SEO, website developments in Shopify and Facebook/Google ads and marketing will reduce your costs. It's worth developing these.

    Share

    GD
    Gilles D.Current store owner
    Entrepreneur on the side - NZ based

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