The anonymous business generated $50,764 in revenue year-to-date, breaking even and presenting an opportunity to buy a profitable cash-flow asset below market value. Its potential lies in optimizing advertising, notably on Meta platforms, which could increase profits to over $100K annually. The business achieved a Return On Ad Spend (ROAS) of 3.7x in June and 2.6x in August, with net margins of 27% and 16%, respectively. With an untapped market of approximately 3 million potential customers, further profitability could be achieved by exploring ads on platforms like TikTok, Google, or launching new products.
The current owner is a full-time student, lacking time and expertise to fully maximize Meta advertising, the key to unlocking greater profitability. The ecommerce operation is nearly fully automated, with a significant profit margin of 56% before advertising expenses, and a product sold at an 8.5x markup, targeting a niche market of Jiu-Jitsu practitioners in the US.
The business operates with minimal overhead, relying on Meta advertising, which can be outsourced for efficiency. A systematic advertising strategy could significantly enhance profitability, as the product enjoys a solid margin due to its low production cost. The business holds copyright ownership, which will transfer with the sale. The customer base consists mainly of dedicated Jiu-Jitsu athletes seeking performance improvement, acquired predominantly through Meta advertising. Despite the potential to expand, the business currently focuses on the US market, benefiting from the growth of interest in Jiu-Jitsu and UFC. Financial assets include $5,623 in cash and inventory valued at $4,460, with no liabilities.