Tell us a little about yourself. What’s your background? How did you start the business?
My 14-year-old son was a “sneakerhead” for a few years – amassing a serious collection of sneakers. He also has an entrepreneurial spirit that has allowed him to pursue turning his hobbies and passion into business ideas. I am a business executive at a pharmaceutical company and have been able to encourage and guide him without interfering with his success or failures.
As an e-Commerce business, where are your products made?
How have you marketed the product and where are your customers originating from?
Alex has focused his marketing efforts primarily on Canada as well as a few major cities in the United States through social media such as Instagram, Tiktok, and FB.
Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?
The asset is owned and operated by my 14-year-old son. He is a one-person team. He would spend 2-4 hours per day running the business and doing everything himself. Most of his time was spent interacting, as a brand, on social media – distributing content and information, creating giveaways, running ads, contests, etc. Working with a social media manager with experience in eCommerce would help scale up and expand to more geographic markets. A virtual assistant to process incoming orders and interacting with customers after the sale would also save time.
What does someone need to do to continue operating the business in its current form?
To continue operating the business in its current form someone simply needs to be consistently active on social media and run ads.
Can you list a few opportunities for a potential new owner to continue growing the business?
The biggest opportunity will be found in expanding to certain geographic areas and establishing HypeTheNation as a viable alternative to StockX. Listing and selling inventory that is on consignment is the biggest opportunity – this can lead to a potential acquisition by a much larger company.
What has been the evolution of this asset since its launch?
The evolution of the asset had been the following: at first, my son listed and sold his personal collection, he then recognized the demand for different sizes, ordered and kept inventory in different sizes, and then after proving that he can sell – suppliers agreed to drop ship to customers thereby eliminating the need for inventory. The next step would make an online exchange or consignment business model.
How does this business make money? What are the current revenue streams?
What marketing channels are most profitable for the business?
Facebook/Instagram ads, social media exposure and word of mouth.
How does the business currently acquire customers and what is your breakdown for marketing costs?
Customers are acquired through Facebook-Instagram ads. 11% of gross profit is spent on marketing costs. The avg. cost of acquisition is $35 per customer.
How big is your current team? How many people does it take to run this business?
What’s the reason for selling your business on Flippa?
My son has lost all interest and motivation regarding anything sneaker related. His latest infatuation is Paintball… for now at least.