Home Based Performance Car Component Manufacturer Growth Potential For Sale

Business description

This performance car component manufacturer is a home based operation that can be run out of virtually any location, and commands an astounding 70% gross margin and 56% net profit! The 7 year old firm provides enthusiasts of The Fast and The Furious types of autos 3 different specialty products – one of which is necessary for any performance enhanced (turbo or supercharged) automobile, along with two additional products that further increase car performance. The company assembles products it has manufactured offshore, and ships them directly to its nationwide dealer network of performance shop owners (some of which it private labels its products for), and to a far lesser degree, directly to end-users.

Property information

Living accommodation:

The home based business requires approximately 200 – 300 square feet of space for a sales desk, assembly table and small shipping area.

Location:

This sale includes all of the businesses assets including its goodwill (name, website, client list, etc.), and the minimum amount of equipment associated with it. Approximately $33,000 in its raw materials and finished product inventory will be sold at cost at close in addition to purchase price.

Business Operation

Expansion potential:

This firm appears to have several areas for potential growth. New owners will likely seek to create a marketing brochure to provide to auto part wholesalers, retailers, modification shops, etc. The company should also seek to advertize in trade magazines, be active on auto talk forums and target the international community or attend trade shows (they currently only go to Sema in Las Vegas). In addition, as the firm tends to focus on Japanese made car components, it may also seek to manufacture similar products for American and European cars such as Fords, Audi’s, BMW’s, Mercedes, Fiats, etc. Finally, as the 3 components (around 27 sku’s in total) are not related to one another, there is no shortage of other auto components or accessory products the company can cross promote to its captive client base.

Competition / Market:

This firm has no direct competition that produces its custom OEM quality product; the only competitors make a more expensive generic / universal product that requires modification. As perfecting these custom products required years of testing, nearly 30 trips to Asian manufacturers to perfect and significant investment in tooling machines, there are significant barriers to entry to ward off the threat of new competition.

Reasons for selling:

Personal

Employees:

2

Years established:

2004

Other information

Support & training:

2 wks at 20 hrs/wk

Inventory / Stock value:

$33,000

Home based:

This business can be run from home.