Overview

it’sNOMB is a U.S.-based print-on-demand e-commerce business specializing in customizable products. Operating for over three years, the business has shown consistent annual revenue, nearing $400,000, with a profit margin of approximately 29%. The business is heavily reliant on multiple sales platforms, including Instagram Shops, TikTok Shop, and Shopify, and has recently transitioned from warehousing to a print-on-demand model.

Listed at $150,000, the business presents potential for growth and scalability. However, some challenges, such as declining profit margins and traffic, need to be addressed before moving forward with an acquisition.

Key Insights

Strengths and Opportunities

1. Consistent Revenue and Profitability:

   • Generating nearly $400,000 annually with a $100,000 profit (~29% margin), the business has demonstrated financial consistency over its three-year history.

   • Monthly profits average $9,000–$10,000, making it an attractive acquisition for steady cash flow.

2. Multi-Platform Presence:

   • The business operates on Instagram Shops, TikTok Shop, and Shopify, diversifying revenue streams.

   • Recent integration into TikTok Shop shows adaptability to emerging sales channels, which can drive additional growth.

3. Scalable Business Model:

   • Transitioning to a print-on-demand model reduces overhead associated with warehousing and inventory management.

   • Opportunity to expand onto other platforms like Etsy, where similar brands perform well.

4. Positive Customer Feedback:

   • Despite mixed reviews, the business has a strong reputation on key platforms, such as Instagram Shops, which suggests solid customer satisfaction.

5. Reasonable Valuation:

   • The $150,000 asking price aligns with the financial performance, with potential for negotiation to improve acquisition terms.

Challenges Identified

1. Declining Profitability:

   • Margins have shown a slight decline in recent months, signaling potential inefficiencies or rising operational costs.

   • Detailed data for the past six months (May–November) is needed to assess the current financial trajectory.

2. Low Website Traffic:

   • Last month’s traffic (~1,600 visitors) is significantly low for a business of this size, raising questions about customer acquisition strategies.

   • Reliance on external platforms (Instagram Shops, TikTok Shop) suggests the website isn’t a primary sales driver, which could limit direct brand control.

3. Complex Operations:

   • Operating across multiple platforms and transitioning to a print-on-demand model introduces operational complexity. Ensuring streamlined processes will be key to maintaining profitability.

4. Owner’s Involvement:

   • It’s unclear how much effort the current owner is dedicating to maintaining and growing the business. A lack of focus could explain declining traffic and profitability trends.

5. Limited Recent Data:

   • Financial and operational data for the past six months are unavailable. This information is critical for evaluating the business’s current health and future potential.

Recommendations

1. Engage Seller for Detailed Information:

   • Obtain updated financial reports for May–November, including traffic, revenue, and profit data.

   • Clarify reasons for the recent decline in profitability and traffic, and understand operational challenges post-transition to print-on-demand.

2. Evaluate Marketing and Growth Potential:

   • Assess marketing strategies across platforms to identify gaps or inefficiencies. Consider scaling TikTok Shop and introducing ad campaigns to boost visibility.

   • Explore expansion into new sales channels like Etsy, Amazon, and other marketplaces.

3. Negotiate the Purchase Price:

   • Use the declining traffic and slight profit margin decrease as leverage to negotiate the $150,000 asking price. Aim for a lower acquisition price to account for the risks.

4. Streamline Operations:

   • Post-acquisition, optimize the print-on-demand processes and centralize operations to reduce complexity and improve margins.

5. Develop a Customer Retention Strategy:

   • Build a loyalty program or subscription service to increase repeat customer purchases.

   • Leverage email marketing and retargeting ads to re-engage past customers.

Conclusion

it’sNOMB is a well-established e-commerce business with solid revenue, profit, and a diversified platform presence. While the business has considerable potential, challenges like declining traffic and slight margin reductions require immediate attention. The asking price is reasonable, but negotiating a lower valuation based on current concerns would be prudent.

This acquisition could be a valuable addition to the client’s portfolio, provided the seller can offer clarity on recent performance and the operational shifts underway.

Next Steps:

• Initiate a conversation with the seller to gather detailed financials and clarify recent challenges.

• Conduct further due diligence on operational workflows and platform performance.