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Selling our natural skincare company(3 Posts)
Just not entirely sure the best way to do it?
Based down in Somerset, we set it up in the summer of 2012. Gone through the whole blood, sweat and tears process of setting it up, getting a few key customers etc. I returned to corporate land about six months ago which has literally sucked all of my time (all going well but I am tearing myself to pieces). Step-mum (business partner) cannot manage this alongside her other commitments so we've decided to sell it.
Tons of potential and dare I say, we've made all of the mistakes so now ready made for someone to walk in to!
Turning over c.£70k per year with a 20% profit margin on average. Good smattering of customers (one biggy) with a massive trade show booked for jan (paid £600 deposit last week before making this decision!). We're also planning to do the bath Xmas market along with lots of other fairs and shows this autumn.
So it'll need to be a quick sale. Has anyone else done something like this? It's a fab business and brand, just needs someone to help it fulfil its potential. Can obviously fit around kids well too.
(Realising that this is slightly ad-like but need to give context in order to get advice).
I used this website to advertise two of my previous businesses and the ads generated a LOT of interest and resulted in me selling both businesses: uk.businessesforsale.com
Have a think about what your business assets are e.g. eCommerce website, customer list, newsletter list, social media following. Provide some evidence of any of these being successful e.g. Google Analytics data, newsletter mail opening rates and conversion rates etc.
I'm guessing that profit level was only achieved in your second year and not the first year, so you'll have to prove that the current levels of profit are sustainable e.g. forecasts. Most people looking to buy a business will want to see evidence of sustainable profit if the profit history is only a year.
Some business information should not be share until business handover i.e. 'trade secrets'. You are not going to want to share your formula for success to a business competitor who happens to be snooping around for information via business for sale sites so think ahead of any phone calls about what information you are going to be keeping to yourself and only sharing after the sale e.g. marketing strategies. It's usually necessary to give someone an overview and provide results data.
Thanks Ninja, that's really really helpful.
I'd describe the business as still in start up mode really, we haven't realised anywhere near its potential and there are still some very hot irons in the fire. We deal with visitor attractions gift shops a lot and I've learnt that they're a very slow burn but once they come good it's extremely lucrative. So forecasts feel slightly finger in the air as it'll be very dependent upon someone putting in the time to follow up on various leads/trade shows etc.
I guess what we have done is prove though our biggest customer that there's plenty of scope to increase revenues through new products as well as selling more.
God, when I write it down I do think I should be putting more in to it. However, corporate-land job is going SO well and money is too good to decline.