This easily relocatable niche market eco-friendly web-based food manufacturer had enjoyed stellar 55% year over year growth, a dominant position in the feel good health oriented food industry, and the leisure of being able to both manufacture anywhere and ship nationwide to its constantly new and established client following without having to maintain a retail facility! The company was founded by a duo driven to help themselves and others who faced the same lack of dining options for their lifestyle preferences, as opposed to sellers who solely possessed a profit motive. As such, the sellers have not capitalized on many profit opportunities presented to them, and have priced this business (which has been only one of many of their side-ventures) extraordinarily reasonably to facilitate a timely and stress free sale to a fortunate candidate who shares their vision of helping people to affordably maintain a healthy diet, lose weight, look and feel better, while simultaneously doing the best thing possible for the environment.
Reason to sell
Support and training
: 2 wks at 20 hrs/wk
New owners will seek to take this firm in several directions, including advertising in mediums that will reach those with similar dietary and lifestyle preferences, engaging in ongoing search engine optimization and pay per click programs to insure top of organic or keyword based web searches, expansion into buy sites such as Buy.com, Amazon, Overstock, etc., launching new, innovative high quality meal offerings, expanding its highly popular yet very limited bakery product line, and continued focus on those seeking to modify their eating habits to achieve weight loss or fitness goals (which they can already facilitate and that present a tremendous market opportunity, but that they have yet to focus on), etc.
Further, as the sellers have not actively sought to have their products retailed in health food stores (or mass market food store that offer specialty foods), new owners will likely seek to attend trade shows, appoint marketing reps to conduct sales calls, appoint distributors, etc. to gain such business as all of the necessary components to do so are already in place. Marketing to school (primary or college) meal programs, hospitals, the military or penal institutions, or simply providing meals for those with dietary preference is another major avenue for potential growth, while navigating the insurance market to have meals provided to covered clients may also prove an extraordinarily lucrative untouched market.
Finally, due to the business model’s tremendous ease, the offering lends itself to immediate expansion via the launch of additional brands that are further segmented by customer’s preferred price points (e.g. they can launch a gourmet line) or dietary preferences (e.g. a weight loss line, a Kosher food line, etc.).
: Competition naturally exists on many levels in the specialty niche market food industry. That said, this firm has managed to carve out a loyal client following based on its business model of shipping pre-made frozen meals nationwide, as opposed to attempting to compete with much smaller, and higher cost structure local restaurants or in the local food delivery markets. With its formidable client base, coupled with its industry recognition, this manufacturer has a significant long term competitive advantage with those with similar food preference that will be difficult for industry entrants to overcome, and has proven difficult for competitors to match as this entity is considered to be the uncontested market leader.
: The business’s 2,000 square foot catering kitchen is on a 2 year lease with a 2 year option. It leases for $2,050 per month on a lease that may be terminated at a very reasonable rate (not to exceed $7,000). The sale includes all of the businesses furniture, fixtures and nearly $150,000 in restaurant and catering equipment (if it were new – which it is not), as well as its recipe book, website, trademark, and significant goodwill and intangible assets that includes its tremendously beneficial 19,000 person mailing list, 20,000 Twitter followers, 18,000 Facebook fans, multiple key domain names and 21 well produced YouTube videos!