SBA-Approved Beard and Hair Care Brand with Proprietary Formulas and Consistent YOY Growth
This CPG brand manufactures and private labels beard care, women’s haircare, and health & wellness products for over 350 companies globally. They create all products in-house using premium, US-sourced ingredients. With a 65% repeat order rate for wholesale customers, the wholesale channel represents 85% of sales, and the rest come from the website. The extensive product line includes beard oil, balm, cream, wax, body wash, conditioner, vitamins, body butter, natural deodorant, tattoo and cuticle salves, among others, catering to a broad demographic. This online business has scale opportunities such as D2C international expansion, selling on Amazon, social media campaigns, and partnering with domestic influencers.
OPERATIONS
All products are created in-house using premium quality, US-sourced ingredients. The company has an extensive product line that is produced as needed to extend the shelf life. All orders are processed on-site, and daily shipments of products are sent from the company’s factory. The business has kept advertising minimal, with a budget of only $500 per month. The owners currently handle marketing, graphics, manufacturing, wholesale customer service, retail customer service, and accounting. Two contractors handle manufacturing, shipping, and customer service as needed.
The business creates all its products in-house, and all ingredients are sourced in the US. To deliver products with the longest possible shelf life, just a selection of building ingredients is kept in the warehouse. The proprietors only produce products upon demand. The company sends around 40 packages per day in the low season and 150 shipments daily throughout the rest of the year.
MARKETING AND KEY METRICS
The business maintains an online presence through social media, and word of mouth has been the primary source of sales. The company has a loyal fan base, and the owners prefer word of mouth to internet ads. The proprietors keep their advertising straightforward and minimal, with a budget of only $500 monthly.
Scale opportunities are rife, including D2C international expansion, selling on Amazon, partnering with domestic influencers, an aggressive social media campaign, and investing in Google advertising. Hiring a sales team to expand the private label business is also an opportunity.
The wholesale channel represents 85% of Sales, with the remainder coming from the website. The repeat order rate for wholesale customers is 65%. Top-selling products include beard balm, cream, and oil, which collectively make up around 60% of income. The typical customer demographic is comprehensive and includes people from their teens to mid-sixties.
The typical customer demographic is comprehensive and includes people from their teens to mid-sixties. There is some seasonality in sales, with sales slowing down in Q3 and exploding in Q4, while the rest of the year remains solid and consistent.
BUSINESS MODEL & RESOURCES NEEDED
The business is run by two owners who handle marketing, graphics, website development, manufacturing, wholesale customer service, and accounting. Two contractors handle manufacturing, shipping, and customer service as needed.
THE INDUSTRY
The global beard care market has experienced significant growth in recent years, fueled by the rising popularity of beards among men and increasing awareness among men regarding grooming, rising disposable incomes, and the availability of a wide range of products such as oils, balms, and shampoos. North America is the largest market, followed by Europe and the Asia-Pacific region. This acquisition opportunity is ideal for an internet marketing firm or skin care manufacturer.
OPPORTUNITIES TO SCALE
The company has opportunities for D2C international expansion, selling on Amazon and other online marketplaces, partnering with domestic influencers, investing in Google advertising, and hiring a sales team to expand the private label business.
Asking Price: $1,400,000
Gross Income: $577,241
Cash Flow: $379,583
Year Established: 2015
Employees: 3
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