Back to Listings Thriving Custom Hat Business

Asking Price : $400,000

Annual Gross Revenue : $418,839

Annual Net Profit : $171,751

Profit Multiple : x2.33

Inventory Value: -

R-Index : 154

Order a Professional Assessment

From the Broker

Executive Summary

For sale is the #1 Custom Hat Maker in Australia! The business has been selling made to order hats, caps, and beanies to customers around the world since 2002. While the business’ products have wide appeal, its typical customers are clubs, bars, schools, and corporations. The business’ high-quality products have drawn rave reviews and helped the business maintain its steady year-over-year growth.

Revenue in 2017 increased 52% when compared to 2016 revenue and profit over the same timeframe was up 53%. Since 2015, revenue and profit are up 117% and 168% respectively! Despite this growth, there are plenty of options to expand sales beyond where they currently are. The business has not employed any Facebook or social media advertising, and no advertising of any kind has been used since 2013.

It is operated by one owner/operator and he is selling the business because he is ready to retire. The sale includes the website and related domains, current inventory, customer database, all supplier relationships, and a mailing list of over 4,000.

If you are looking for a thriving business with high-quality products, 15 years of success, and several lucrative growth opportunities, this listing could be a perfect fit.

Business Model

The business derives 100% of its revenue from product sales. While the customer base is primarily located in Australia, it has also had success in the US and Europe. There are over 600 customizable products available on the business’ website and the minimum order amount is $1,000.00 AUD. Over the trailing twelve months, the gross revenue was approximately $418,000.00 and the net profit was approximately 172,000.00.

The vast majority of orders are shipped directly from the manufacturer to the customer. However, the owner does hold a small inventory of stock items on location. The business has two primary suppliers and has used them for the last seven years. All relationships will transition to the new owner, and the suppliers have additional products available for easy expansion.

The owner spends around 40 hours a week operating the business. This time is primarily spent on graphic design, marketing, customer inquires, and order administration. The business has outsourced bookkeeping and IT, and many of the owner’s responsibilities could easily be outsourced as well.

Growth Opportunities

There are a number of lucrative growth opportunities the new owner could pursue. The easiest win would be to leverage existing resources. The business has an email list of over 4,000 customers that has never been used. The new owner could leverage this list and create email marketing campaigns to drive proven buyers to the website.

A new owner could also utilize social media more effectively. Currently, the business does not have any social media accounts. Facebook, Twitter, Instagram, and Pinterest, could all be used to advertise products, drive traffic, and publish content. Google AdWords could be used to grow sales as well.

Lastly, the new owner could pursue US and European market expansion. The current owner has had success in these areas but has been unable to expand due to organizational limitations. An owner with more resources could enter these markets and grow the business exponentially.

View Full Listing Back to Results

Listed By

Sale Pending: No

First Seen: Thu, Nov 9th 2017

Last Updated: Wed, Jul 4th 2018

Rhodium Weekend 2015
Never Overpay Again. Download the 2018 Website Buyer's Report