The business, established in 2012, offers unique inflatable designs and follows a streamlined order process. Customers begin by placing an order and providing a 30% deposit. Subsequently, an order is placed with a manufacturing plant in California, which handles production and drop shipping. Two days prior to shipping, the remaining 70% balance is charged, and the original equipment manufacturer is paid. Profit margins can fluctuate between 25% and 50%, influenced by product type and promotional activities.
In its inaugural year, the business achieved sales exceeding $160,000 with minimal advertising efforts. However, in 2013, the founder launched another venture and became less available to engage with customers, resulting in a dip in sales to $130,000. By 2014, without any advertising and limited availability due to commitments to other businesses, sales further declined to $70,000. Despite these challenges, projections suggest that with proper advertising strategies like pay-per-click, email marketing, and cold calling, the business could easily generate $200,000 to $300,000 in sales annually without incurring significant overhead, besides a small monthly fee for phone services.
Operations are straightforward, allowing business to be conducted remotely, leveraging email, fax, and phone communications. The financials indicate average monthly sales of $5,500, although reported profits are less accurate; typical monthly margins were around 30%, resulting in an average profit of approximately $1,300 monthly in 2014.