Puzzle Monthly is a five month old puzzle subscription business allowing customers to purchase monthly, three month, six month, and twelve month puzzle packages
Over the past five months, a subscription-based business has successfully grown from zero to 157 subscribers, maintaining a 0% churn rate without significant marketing efforts, having only invested $157 in marketing thus far. The business maintains strong financial health, achieving a profit margin of 57% by focusing expenses primarily on shipping and the cost of goods sold (COGS). This business operates on a tight budget and has potential growth opportunities through strategic scaling or outsourcing for fulfillment.
Currently, the business manages operations by purchasing puzzles, packaging, and shipping them directly to customers on the 16th of every month. The average shipping cost is $8.90, and the average COGS is $5.75. Sales are made through two primary channels: organic growth on marketplace sites, where the business enjoys a five-star rating, and an underutilized e-commerce platform. The billing cycle starts on the 1st of each month for subscribers, and subscribers have the option to renew or discontinue their subscriptions at the end of their term.
The customer base, mostly over the age of 55, has grown organically due to the seller's lack of marketing expertise. Financial records, maintained by a CPA on a cash basis, show consistent growth with a reported revenue of $15,098.31 for 2022 and $17,259.76 in total. The seller is considering selling the business as its future growth may require skills in marketing and outsourcing fulfillment, areas beyond their expertise. However, there is no urgency to sell, as the current operations are stable and profitable.
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1. Agreements & Contracts.
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