The business under review is a specialized 10-year-old agency focusing on Squarespace design and development, generating $530k in revenue with a $291k profit. It is operated by a fully remote team and has received over 300 five-star reviews. Originally a side business, it transformed in late 2022 when the founder left a corporate job to focus fully on it, developing it from a freelance model into a more structured agency. The agency's main revenue stems from mid-market web design and development projects, with core packages priced around $2,750 and $1,500, and custom projects ranging from $10k to $65k. They recently added recurring revenue streams through support retainers that currently generate $2.6k monthly. Operating on a "hub and spoke" model, the agency is run by an Operations Manager and a virtual assistant, supported by a team of designers and developers. The owner dedicates approximately 30 hours per week to sales and oversight. Interestingly, the business invests nearly nothing on marketing, relying primarily on reputation through the Squarespace Marketplace and client referrals. Financially, the agency boasts excellent margins of around 50%, with the team as the main cost component. There are significant growth opportunities in marketing and upselling additional services like SEO and social media management. The current owner seeks to move on to new challenges, aiming to transition into the SaaS industry, thus offering an opportunity for a new owner to scale the business further.
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3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
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1. Agreements & Contracts.
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2. Conduct Due Diligence.
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