17-Year IT Business with Strong Recurring Revenues & Growing Customer Base
This website development and maintenance company has been in business for 17 years, providing website hosting, maintenance, and support services to a diverse range of public-facing clients. They have a continuously growing customer base that remains fiercely loyal, and their average order value is $725 per month for maintenance. Their recurring revenue model and low churn rate make them an attractive investment opportunity.
OPERATIONS
The company has a streamlined process for website development and maintenance, with an in-house team for front-line support and contractors for additional tasks. Their clients have access to a website content management platform, and the standard agreements are all-inclusive. The company has benefited tremendously from referrals, which have built up a highly profitable email database of 3,890+ subscribers.
The company has a streamlined process for website development and maintenance, with an in-house team for front-line support and contractors for additional tasks. They offer a website content management platform to their clients, along with all-inclusive standard agreements.
MARKETING AND KEY METRICS
This business has built its customer base on word-of-mouth advertising from highly satisfied customers. They currently engage in social media marketing efforts on Facebook, Instagram, and Twitter, and have a blog for SEO benefits. The brand has boosted its organic traffic and has an opportunity to upsell products such as new designs, social media services, and accessibility scanning tools.
The company has already demonstrated they know how to provide clients with an expert, user-friendly website, and how to cultivate sky-high customer loyalty in maintaining those sites. The brand has an opportunity to expand its digital marketing efforts, expand their services, and utilize an SEO keywords program to rank higher on Google. They could also engage in software and app creation to draw in additional interest.
The company has 104 clients, with 97 paying monthly and 7 paying annually, and they have an incredibly low churn rate of 4%. Their average order value is $725 per month for maintenance, and they have an enviable 80% customer retention rate over the last five years. The company’s recurring revenue model and scale opportunities make it an attractive investment opportunity.
The company has a diverse range of public-facing clients, including universities, municipalities, non-profit organizations, utilities, museums, and private businesses. They all have a need for a reliable and straightforward platform that allows them to communicate with the public.
BUSINESS MODEL & RESOURCES NEEDED
The current owner only needs to devote 10 hours over the past three months to operate the business, and the system is entirely self-sufficient. The company has only one employee, a program director who handles customer service requests for 20 hours per week. Many customers self-train with the assistance of the brand’s online support directory.
THE INDUSTRY
Website development and maintenance is a rapidly growing industry, with millions of businesses needing either a new website or a revamp of their existing site to stay competitive. Companies from tiny startups to major corporations are investing heavily in the most sophisticated and user-friendly websites possible. This company operates within a highly diverse field of clients, which includes universities, municipalities, non-profit organizations, utilities, museums, and private businesses.
OPPORTUNITIES TO SCALE
With more than 100 clients paying recurring monthly and annual fees, this company retains a steady revenue with terrific scale options. The company could expand its digital marketing efforts, expand their services, and utilize an SEO keywords program to rank higher on Google. They could also engage in software and app creation to draw in additional interest.
Asking Price: $2,200,000
Gross Income: $1,807,757
Cash Flow: $627,130
Year Established: 2004
Employees: 2
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