Revolutionizing Animation and Whiteboard Production with an Ecommerce Enterprise
This high-growth digital marketing firm has been in business for 6 years. It specializes in developing videos, graphics, and animation services for commercial clients of all sizes and segments. The company has reached 50% earnings growth for each of the last three years, with 130% earnings growth in 2016. Most creative work is outsourced while the owner focuses on oversight and strategy. The business does not use a marketing or advertising budget, and there are still great scale opportunities. It is ideal as a bolt-on for other B2B companies or as a first acquisition for an entrepreneur.
OPERATIONS
The majority of the creative work for this company is outsourced to a group of highly trained vendors that have been vetted and proven through projects. They specialize in animation and graphics, and the work is of high quality. New ownership can be trained on all aspects of the business, and the focus is mainly on overseeing operations, managing strategy, and expanding the service offering. Business is completely relocatable and transferable to new ownership, leaving no interruption for clients.
The majority of the creative work for this company is outsourced to a group of highly trained vendors that have been vetted and proven through multiple projects. The owner focuses on managing operations and quality assurance while the vendors specialize in animation and graphics work.
MARKETING AND KEY METRICS
The company does not currently use a marketing or advertising budget. It has achieved its current growth and success through search engine optimization and word-of-mouth marketing due to the quality of services provided. With the track record of success by the company, there exists better opportunities to expand marketing, advertising, and sales to new frontiers.
The key sales channels for this business are direct B2B sales through the e-commerce site. With the right marketing strategies and brand awareness, it can explore additional sales channels such as sponsored content, business directories, social media marketing, influencer advertising, and Google AdSense. Sales growth can be achieved by adding new services or cross-selling efforts to existing clients.
The key metric for this business is direct sales through e-commerce with other B2B clients. However, growth can also be enhanced by expanding the service offerings of video creation and graphic design, alongside building a strong social media presence as well as targeted digital marketing efforts.
This business services commercial clients of all sizes and segments across geographies. With its reputation for quality and the high growth potential, it also has the room to branch out to newer industries, especially where video marketing is highly effective, such as healthcare, software, and retail.
BUSINESS MODEL & RESOURCES NEEDED
This company is a solo operation run by a single owner-operator, but there exists tremendous scope for employing in-house workers as well as hiring additional outsourcing vendors for marketing, sales, and creative tasks.
THE INDUSTRY
The industry this business operates in is the creative and digital marketing sector. With the advent of interactive media and the increased focus on marketing through social media and videos, the demand for high-quality animation and video services has been rapidly rising in recent years. It is a sector with vast growth potential due to technological advancements, and also given the fact that more people spend time online than ever before. Notable players in the industry include top-rated companies such as Brafton, Adobe Creative Cloud, and Animaker.
OPPORTUNITIES TO SCALE
This business has significant room for growth. New ownership can expand the product catalogue to include other creative services, such as website design or social media marketing. Establishing strong brand recognition, creating an appearance of expertise through educational offerings, and developing partnerships with other businesses are other ways to increase profitability. Given that the business is highly scalable to accommodate for larger clients, it can choose to pursue large commercial clients and be a preferred video services partner in the market.
Asking Price: $375,000
Gross Income: $195,000
Cash Flow: $149,000
Year Established: 2015
Employees: 1
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