💸 Who Wants to Make $156k a Month Owning This Fitness Brand?

Nano Thought

One of the best parts of being an online business owner is that instead of dying with changes in technology, we get to pivot with them.

James Camp 🛠,🛠 @JamesonCamp Ai is going to help a lot of people buying businesses make them much more profitable Very quickly Over the next few years April 26th 2023 4 Retweets 37 Likes

There are going to be some generational opportunities coming up. Some of the ways I think about AI give us opportunities to improve businesses.

• Content sites can now build content 1000x faster, and make content that is interesting to readers on social at scale, not just worry about SEO
• Ecom sites can immediately implement conversion rate optimization techniques that provide them with boosts in net profits again and again
• Saas businesses will be able to pivot and upgrade with new code and upsells at 1/100th of the cost as before in a moments notice
• Customer service Ai chatbots will be able to answer all visitors questions without the need of human intervention

...btw everything above? Can be applied to ALL kinds of businesses.

I've been digging in and putting together a list of tools and prompts we use with our businesses to share with you all.

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This Week’s Opportunities

​Empire Flipper​s FBA Site​

Here is a breakdown of a site from Empire Flippers. The listing can be seen here​

Site Summary:

An Amazon FBA business created in February 2015 in the health & fitness and equipment niches. The included Amazon Seller Central account is registered through Amazon Brand Registry and features 5 SKUs related to various types of fitness and health equipment for a specific kind of activity and subculture.

The top-selling SKU averages a 4.3-star rating across 7k+ ratings and the business requires minimal time to maintain.

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​Things we don't like:

• Low profit margins (15%)
• The brand is a leader in its niche so often has to deal with legal issues around copycats. The seller uses a legal third-party company to handle these issues and they’re straightforward to deal with, but they can take over an hour a week to resolve
• Has some performance dips in its history

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Ok Y'all! things we do like:

• Well aged and established - over 8 years old and protected by trademarks. Also registered with Amazon Brand Registry
• Specialized products that solve what seems to be a common problem for customers
• A trending, lifestyle niche - these types of niches attract the most loyal customers
• Instagram account has 10K+ followers and UGC - the products are very suited to social media, especially Instagram
• Protected by trademarks and Amazon Brand Registry
• Low number of SKUs to manage. They’re also closely related to each other so sell together nicely
• Products have thousands of reviews - one shows up as 5 stars on Amazon. Difficult for competitors to surpass this
• Only takes 5 hours per week to run with no employees

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A new owner could:

• The brand is dominating on Amazon, so a new owner has the chance to expand into Shopify and build an ecommerce arm of the business. This will strengthen the earning power with multiple sources of revenue - organic would be key here with the margins being so thin.
• The seller created a beauty product a while back that took to the market really well, but they weren’t able to fully take advantage of it. Launching this product is a great opportunity to scale and expand

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Final Thoughts:

Overall, this is a solid FBA business with an established brand. It’ll be hard for competitors to take it down with how it dominates a small, but trending niche with a loyal fan base.

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It’s best suited to a small aggregator-type buyer who has some other brands this brand would shoulder nicely with to fuel their portfolio.

It’s also for buyers who want a brand that has fan base with a strong emotional connection to the niche and the products. Instead of just a business selling popular SKUs.

The biggest growth lever is that beauty product that took well to the market. Launching that will be a quick revenue-boosting opportunity.

But this business is ready for expansion. It’s already established in Amazon, so a new owner should consider taking it to other platforms and spreading the brand further across the market.

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As always...do your own due diligence, the above is based off of what we see as an opportunity from the info provided in the listing and some light due diligence, not a deep dive. It just one of many scenarios that could play out and its up to you to do your own due diligence and see if this makes sense for you!

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​Podcast Corner

For the fans, it's been a loooooonng time, after a 6 month hiatus, our podcast Builders Build is back. Check it out here:

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​Listen on Apple Podcasts​

​Listen on Spotify​

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Whats on the Pod

"What happened to the Builders Build podcast? Was there a falling out? A growing rift between the boys? A takeover coup by the interns?

It could have been any of those things, and you'll never know.

What you do know is Builders Build is back, without any expectations for the future, with another flaming hot podcast upload.

As one does after taking 4 months off, the gang regroups and recaps the last several months.

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​They cover:

Colin's (re)acquisition of LTRMN

Oren's entry into the influencer game

James' foray's into the newsletter business

Twitter is still a complete mess"

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Thanks for reading! I'll hit your inbox next week with another breakdown of a website opportunity!

Thanks from the Nano Flips team

(James)

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P.S.

Check out 2 newsletters from my best friends you will love

Colin Landforce's personal newsletter for all things business building: builders.build/colin​​

Product People - Learn the art of building CPG brands with Oren Schauble: https://go.orenjohn.com/cpg/​

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All investment strategies and investments involve risk of loss. Nothing contained in this newsletter should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.