Ecommerce, Distributor, Manufacturer For Sale - San Clemente, California
Ad/Listing Information
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| Status: |
Off The Market |
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| Location: |
Orange County |
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| County: |
Orange |
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| City: |
San Clemente |
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| Financial Information |
Detailed Information |
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| Price: |
$98,000 |
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| Down: |
Call |
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| Revenue: |
$271,482 |
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| Adj. Net: |
$29,830 |
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| Relocatable: |
No |
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| Home Based: |
No |
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| Real Estate Included: |
No |
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| Bkr To Bkr Coop: |
Call |
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| Franchise: |
No |
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| For Sale By Owner: |
Yes |
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| Asset Sale: |
No |
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| Lifestyle: |
No |
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Description Of This Orange County Ecommerce, Distributor, Manufacturer Business For Sale:
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Starting as a niche retailer of giant chess sets in 2002, the MegaChess website quickly shot past half a million hits per month, revealing a market segment larger than expected.
In the years that followed, MegaChess evolved to command its market before competitors could react. 1/2 With a broad product line, including proprietary designs and tooling in the hands of contract manufacturers, the barrier to entry has been raised. 1/2 Years of name recognition and search engine dominance devoid of competitors has secured MegaChess a protected baseline income from which to expand. 1/2 Stability is further assured by chess having a thousand-year product life cycle.
To understand MegaChess's potential, consider that MegaChess has had no outbound marketing, that its growth has been fueled exclusively by ecommerce in a reactive mode. 1/2 The current obstacle to growth is that prospective MegaChess customers simply don't consider a giant chess set among the solutions to their needs.
A resort manager looking to expand guest accommodations, for example, may consider a bigger swimming pool, eliminated due to cost, or a climbing wall, shot down by their lawyer. 1/2 Without outbound marketing to plant the idea, such managers are unlikely to consider a giant chess set. 1/2 If they do and then search for giant chess sets, they will find MegaChess at the top of the list, and our sales closure rate is a phenomenal 10%.
Key to growth is to field outbound marketing campaigns to each of the 24 markets already buying MegaChess products.
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Valuation Basis
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Besides calculations based on adjusted income, a stable and protected growth rate, and a tenfold expansion potential, the MegaChess sale includes:
* Inventory valued at 150K on a cost basis* An effective and proven custom ecommerce system that would cost 150K to develop.
* Goodwill strong enough to be partly responsible for the lack of competitors
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Ideal Buyer
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The ideal MegaChess buyer would enjoy chess and look forward to involvement with chess players, a demographic characterized by above-average intelligence and the commensurate above-average disposable income. Important to such a buyer would be living in a quiet beach town minutes from the economic centers of southern California.
A typical buyer may be taking early retirement from a fast-paced business, looking for the tranquility of a dominant position in a niche market where a stable base income is largely assured. 1/2 Such a buyer may be seeking a stress-free business environment where time taken for family and outside interests are not punished by the market.
An ideal buyer would bring a solid understanding of the internet, including ecommerce, search engine optimization, and online marketing, on which the current owner can build. 1/2 With email and the like taking the place of the traveling that is characteristic of brick-and-mortar operations, the buyer would need be a master of the clear, written word.
Such a buyer would subscribe to the words of Charles Kingsley, "We act as though comfort and luxury were the chief requirements of life, when all we need to make us happy is something to be enthusiastic about."
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Why Selling?
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Peter Shikli, the man behind MegaChess, has always retained his passion for online software development. 1/2 His Bizware Online Applications, Inc. is poised to capitalize on years of software R&D to field entries into the expanding virtual workplace. 1/2 Faced with a time management problem, Mr. Shikli needs to divest MegaChess in order to focus his time on Bizware.
The MegaChess owner is not looking to cash out or sever ties to MegaChess as much as to change his relationship from an on-call trouble shooter responsible for daily operations to a strategic consultant.
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Transition Support
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Besides the formal transition support that can be part of a sales contract, the existing operational software includes an online task management system whereby the owner can participate in real time in decisions and operations on a consulting basis.The owner is a UCLA engineer with an MBA. He worked in corporate America, rising to vice-president, always with a focus on the intersection of technology and marketing. 1/2 He founded Bizware Online Applications, Inc, a pioneer in online software development since 1994. 1/2 He has made sure the MegaChess ecommerce system is effective, reliable, maintainable, and expandable.
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Philanthropic Opportunities
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The ability to enrich the lives of children is a key benefit to owning MegaChess. Leveraging the "Harry Potter Effect" and the attraction of giant chess, MegaChess can be part of the intellectual stimulation that has been proven to help improve academic achievement and combat video game addiction.Regarding our troops, the stress-based boredom of today's overseas assignments remains a significant problem, even if it doesn't catch headlines.
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Online Product Sales Business For Sale Photos
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Ecommerce, Distributor, Manufacturer Business Opportunity For Sale, San Clemente, California, CA | BizBen
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