For sale is an established brand bringing wireless sports audio and accessories to fitness enthusiasts. Having launched in July 2015, the business has shown strong growth with a 3.77X YOY growth rate in the last 12 months.
Driven by the continuing uptake of smartphones, and recently by the removal of the legacy audio jack from the iPhone7, Bluetooth headphones are in a strong growth phase. In June 2016, sales of wireless headphones overtook sales of wired headphones for the first time. It is anticipated that the market for Bluetooth headphones will continue to grow at 6.5%, reaching $20BN by 2023. While Bluetooth headphones are now mainstream in the US and UK consumer markets, Bluetooth device sales are still relatively new to the Australian market, making Amazon’s imminent launch in Australia a huge opportunity for the brand. Furthermore 2016 saw the advent of the next growth platform in the headphone space with the introduction of ‘true wireless’ headphones.
Operationally, this business is now well placed to take advantage of this industry. Having explored and identified key in-demand features, the business has narrowed in on successful products and heads into FY18 with several seasoned and performing products and a clear product roadmap for both expanding the existing line of ‘traditional’ Bluetooth headphones as well as entering the true wireless growth market.
The business has registered trademarks in the US and pending in China, Brand Registered and gated listings on Amazon US and UK, well documented processes and a small fully trained operations team. With close to turn-key operations in place and handover from the founders, the business would make an excellent starting point for a new ecommerce entrepreneur, or an excellent bolt-on brand for an experienced Amazon channel operation.
Conservatively, the founders anticipate 120% top-line growth in the next 12 months, with $1.67M Revenue and resulting in $172K EBITDA.
Based on performance to date, the tremendous online footprint established and the immediate future opportunity, the founders seek a sale value of $350K.
Highlights & Key Assets:
• 4 established sales channels (Amazon US, Amazon UK/EU, two websites). All 4 channels have plenty of headroom for expansion, and the AU presence provides a platform for launching with Amazon in Australia in Q4 2017-2018.
• Business is a trademarked brand in the USA, with trademark pending in China. It is Brand Registered, and Brand Gated with Amazon in the US and UK, removing the issue of listing hijackers.
• Company’s flagship product, a high quality product with 700+ reviews on Amazon at 4.4*. The product is organically ranking on page 1 for more than a dozen search terms. This is a private label product and we have a very close and cooperative relationship with the supplier. We usually get offered new products they develop first. This oneis on a significant growth path following our marketing investments through March to June.
• Other product is an exquisitely crafted over-ear headphone, with preferential access to the original manufacturer (only 1 other supplier has rights to sell the product in the US). Recently, this product was awarded a spot on Indiegogo’s innovation marketplace thanks to the innovative design. Indiegogo recognition has seen sales begin to pick up and this product has significant growth potential.
• Business has a strong product roadmap, including release of true wireless earbuds and an accessory product selected and available to launch in the next quarter. Furthermore we have done significant design work on the next version of the main product – making numerous improvements for our target niche, and will undertake custom tooling to create a unique product ready for release in Q4.
• Strong social media presence with Facebook page (16,700 followers), Instagram (4,450 followers), Twitter (2350 followers) and 8 Pinterest boards that brings an average of 45k views monthly.
• Through converting sales on Amazon as well as offers, website visitors and other channels we have acquired over 10,000 email subscribers. In March 2017 we launched a run coaching email series written by professional performance coaches targeted at beginner runners, with a second higher-level series that widened the running demographic funnel. We have also just completed implementation of a client referral program, which we expect to escalate member signups in Q3-4.
• Our customer service operation runs on Freshdesk, with a full time virtual staff member handling enquiries. All customer service process are fully documented and supported with video training. The CS staff member will migrate to the new owners. This is a turnkey operation.
• Social media day to day operations are handled by our full time trained assistant social media VA, again all processes are fully documented.
• Amazon accounts in the US and UK are in good standing with excellent customer metrics. We have an active vendor express account and access to AMS in the US.
(SEE PROSPECTUS for detailed growth plan and product roadmap)
Full support and training will be provided. This is negotiable depending on your needs. The owner is committed to making it a success for a new owner.
Reason For Selling:
Leveraging from one of the owners background in software development, the founders have decided to utilize their knowledge and experience to assist other entrepreneurs with software tools, and wish to capitalize their current business to invest in their new business opportunity.
Sale Pending: No
First Seen: Thu, Jul 6th 2017
Last Updated: Fri, Sep 22nd 2017