Nano Thought

To those of you who have been around here for a while....Welcome back to our regular programming.

Weekly sites for sale, and tips on how to grow them

"Why would someone sell an online business that's making money?"

This is one of THE MOST common questions that I get. I recently brought up the topic and got some great replies on Twitter:

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Shlomo Freund @FreundShlomo @JamesonCamp haha. I hear this all the time: Why would someone sell such a business? 1. They are tired of it (and that's ok) 2. The grew it to the maximum they can. 3. They have a bigger opportunity. 4. They need the money 5. I probably missed more reasons.... James Camp 🛠,🛠 @JamesonCamp Im always blown away when people say "No way you can buy an online business that's profitable! Nobody would sell that!" You couldn't be more wrong, the opportunities are endless 11:46 AM • Jun 19, 2023 0 Retweets 1 Likes Read 1 replies

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To sum it up...there are infinite reasons! Don't forget that when you buy a stock, it's being sold to you by another person that has decided they don't want it. Even when you buy Amazon and Apple! The largest most profitable companies in the world.

It's not your job as a business buyer, to decide if the seller's personal reasons are good or not. It's your job to decide if the business is a good one.

And is the right one for you to run and grow. Here are a few deeper explanations:

1. Cashing in: Selling a business allows the owner to receive a lump sum payment, which can be used for personal or professional purposes, such as taking a well-deserved vacation, remodeling their home, or buying a new car.
2. Lifestyle Change: Running an online business can be demanding, and some entrepreneurs may decide to sell their business to pursue a different lifestyle or work-life balance.
3. Creative Block: Entrepreneurs may experience a creative block or burnout, leading them to sell their business and seek new challenges or projects.
4. Health Concerns: Unfortunately, health issues can be a significant factor in the decision to sell an online business. Entrepreneurs facing health challenges may choose to sell their business to focus on their well-being
5. Scaling and Operational Challenges: While online businesses offer incredible scalability, not all businesses can maintain exponential growth. Entrepreneurs may decide to sell their business if they feel they've reached the peak of its potential or if they're struggling to manage the operational challenges that come with growth

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Nano Flips Special Offer

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Ok Gang!

This is a pretty sweet little deal right here. Im often looking for insights from other operators and markets that I respect. Olly Richards is one of them.

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​Olly Richards put together a giant, 117-page case study about how he’s scaled his business to $10M.

When he sent it to me I have to admit I was pretty impressed at the depth.

Seems relevant not just for creators and coaches but anyone looking for creative solutions to scale with a super lean team. If your buying, building, or operating sites, its def worth a download.

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​Download here​

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This Week’s Opportunities

​Empire Flippers FBA Listings​

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

Site Summary:

An FBA listing for ya all this week!

This listing is for an Amazon FBA and eCommerce business created in January 1998 in the children niche. The business has been selling online since 1998 and on Amazon since 2008! The included Amazon Seller Central account is registered with Amazon Brand Registry and features 50 SKUs (plus 10 product bundles) for children's toys.

The business has been earning 7 figures in revenue since 2002. All of the products have 4+ star ratings, with the top-selling SKUs having thousands of reviews and one has an Amazon's Choice badge. Nice long history without a ton of time needed to maintain.

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​Things we don't like:

• A relatively significant portion of the business comes from bulk orders instead of being strictly FBA or DTC.
• Logistics is reliant on only one supplier located in China.
• The business is experiencing a bit of YoY revenue decline.
• Because some of the products can be seasonal, inventory management can be difficult and it’s important to approach high sales seasons with care.

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Ok Y'all! things we do like:

• Nice net profit margins at 31%, evergreen niche and strong reviews.
• The business has 2 decades of clearing 7-figures in revenue so it’s a VERY well established brand.
• With just 60 SKUs there’s a good amount of diversification without having an overwhelming number of products. One of the products even has an Amazon’s Choice Badge.
• Limited amount of work required each week, mostly to do with inventory management.

A new owner could:

• Focus more on building out additional streams of revenue such as Shopify and Walmart. Walmart would be an easier quick win than Shopify.
• Optimize and scale PPC campaigns to get revenue figures back on the upward trend - consdider bringing new media buyer in house
• Develop additional products within the children’s niche that complement the existing line.

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Final Thoughts:

There’s no doubt that a business that’s been this successful for more than 20 years can continue to be successful well into the future. (Its called the Lindy effect yall)

The most obvious thing that needs to be addressed as soon as the new owner takes it on is the declining revenue. With optimization of PPC campaigns and expanding into other verticals, it’s def doable for the right operator.

If you’re looking for an established business and have the knowledge and desire to grow it to the next level, this could be a great fit. None of the pain of finding products and gathering reviews but all of the opportunity for creating success in new channels.

Worth looking into some lenders for this one if youre interested in it. Seems as if it might qualify!

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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

Ok team, this week I want to share a podcast that truly spoke to me. Hopefully it will speak to you guys as well.

Often we measure success in the wrong ways, and chase wins only to find that they are unfifilling.

This is one of the reasons that I urge people to build or buy an online business. So that they too, can start to explore what truly makes them feel fulfilled. Working for yourself is the easiest way to explore that for many.

Check it out here:

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"Today, I sit down with Rick Rubin to talk about living a life of creativity. Rick shares his insights on why curiosity is a powerful tool when it comes to achieving dreams and finding success, the influence our attitude has towards the things that we do and the people we surround ourselves with, and how to stay focused on your goals and not get distracted by negativity and lack of support. "

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Thanks yall, see ya next week!

(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.