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Premium Jewelry Shop w/ $1M Annual SDE 💍
Under the Radar Weekly Deals
The #1 Boring Biz Newsletter
👋 Hey fellow searchers,
Welcome to issue #19 of Under the Radar!
We hope everyone had a fantastic 4th of July weekend! 🎇 Whether you enjoyed fireworks, BBQs, or just some relaxation, we’re glad to have you back.
Now, let’s dive into this week’s under-the-radar businesses. 🚀
This week’s issue features:
🌳 Construction & landscape biz w/ 95% customer retention
💍 Premium jewelry shop w/ $1M annual SDE
🏊🏼♂️ Residential & commercial painting biz w/ $1.6M revenue
Hot Deals 🔥
Analyses of the best deals we found across top marketplaces and brokerages.
#1. Construction & landscape biz w/ 95% customer retention
🏷️ Asking Price: $1,100,000
📍 Location: Hennepin County, MN
Overview: Established in 1996, this business has evolved from lawn care and snow removal to a full-service construction and landscaping enterprise. It thrives on word-of-mouth referrals with minimal advertising and handles economic slowdowns by focusing on repairs. While landscaping is seasonal, construction continues year-round. The owners, wishing to slow down, are selling but willing to offer ongoing support and accounting services. The husband-owner is also open to staying on in a sales role.
Key Highlights ✅
~$1.56M annual revenue
~$582K annual SDE
95% customer retention rate
Growth Avenues 🚀
Utilizing online advertising, social media, and SEO can increase visibility and attract new clients on top of the company’s word-of-mouth referrals
Offering discounts, package deals, or bundled services during off-peak seasons can boost sales and keep the workforce engaged year-round
Potential Risks 🚩
Finding skilled labor for both landscaping and construction tasks can be challenging. Investing in training programs, offering competitive wages, and creating a positive work environment can help attract and retain talent.
The transition of ownership might affect customer relationships and operational continuity. However, the current owner’s willingness to stay on could mitigate this risk by ensuring a smooth transition and maintaining client trust.
Questions❓
Are there any existing contracts or agreements with customers that will transfer with the sale?
What is the condition and value of the current equipment and inventory included in the sale?
How does the business handle any seasonal fluctuations in demand and staffing?
#2. Premium jewelry shop w/ $1M annual SDE
🏷️ Asking Price: $2,900,000
📍 Location: Collier County, FL
Overview: This exclusive jewelry shop has been a cornerstone of the community for over 40 years. Renowned for its high-end clientele and unique services, the shop offers custom-created jewelry via computer-aided design, locally designed and hand-fabricated items, and expert restoration work. Located in a strip plaza with great organic street traffic, the shop includes private client rooms, robust security, and an onsite workshop. The owners are selling due to other commitments and are offering seller financing of up to $800K to qualified buyers.
Key Highlights ✅
~$1.83M annual revenue
~$1.01M annual SDE
$250K FF&E (included in asking price)
$800K inventory (included in asking price)
7 employees
Growth Avenues 🚀
Developing a robust e-commerce platform can attract a global clientele and increase sales beyond local reach. Adding online marketing and social media campaigns can further enhance brand visibility and customer engagement.
Hosting jewelry-making and design workshops can generate additional income and build a community of loyal customers interested in the craft.
Potential Risks 🚩
Luxury items are often the first to see a decline in sales during economic downturns. Maintaining a diversified product range and offering affordable options can help mitigate this risk.
Jewelry stores are targets for theft. Maintaining robust security measures is essential to protect inventory and ensure customer trust.
Questions❓
How does the custom jewelry design process work, and what is the average turnaround time for orders?
What are the current security measures in place, and how have they evolved over the years?
How often does the inventory turnover, and how is it managed to ensure freshness and variety?
#3. Residential & commercial painting biz w/ $1.6M revenue
🏷️ Asking Price: $1,050,000
📍 Location: Deerfield Beach, FL
Overview: Established in 2014, this profitable painting contracting business is known for its strong reputation and relationships with real estate agents, interior designers, and a diversified clientele. It offers a range of services from interior and exterior painting to wallpaper installation, drywall repairs, and more. The business has a healthy online presence, driving new business and customer retention. The seller will provide training for 14 days and stay longer for a negotiated fee if desired.
Key Highlights ✅
~$1.6M annual revenue
~$477K annual SDE
7 employees
Home-based (relocatable)
Growth Avenues 🚀
Investing in SEO, online advertising, and social media campaigns can boost visibility and attract new clients
Forming partnerships with more real estate agents and interior designers can drive referrals and repeat business
Potential Risks 🚩
The painting industry is competitive. Continuous improvement in service quality and customer satisfaction is essential to stay ahead.
Questions❓
What is the condition and value of the current equipment and inventory included in the sale (if any)?
How are projects managed and scheduled to handle peak seasons and avoid downtime?
What is the average duration of contracts with real estate agents and interior designers?
Radar Picks 📡
Bit-sized reads featuring insights and fresh perspectives
Tweet of the Week 🐦
This week's featured tweet comes from Mike the Lummox. He offers a word of caution about SBA 7(a) loans, highlighting potential pitfalls and what to watch out for when considering this financing option. Essential advice for any aspiring business owner👇
Listen to Bruce! SBA 7a loans are a ONE WAY door. There is NO ESCAPE HATCH. 🚫🚫🚫⛔️⛔️⛔️
Having experienced what this looks like in practice, I tell everyone now: Just because you can pay your SBA loan doesn’t mean your business isn’t starved of cash flow
Lower cash flow means… x.com/i/web/status/1…
— Mike the Lummox | ETA enthusiast | SMB Owner 🫨 (@Mikethelummox)
4:24 PM • Jun 29, 2024
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DISCLAIMER: This newsletter is for informational purposes only and should not be considered financial advice. It offers analyses of businesses without endorsing any specific financial actions. Readers are advised to do their own research and consult a professional before making investment decisions.