TRANSWORLD BUSINESS ADVISORS OF HOUSTON.
Party Supply Store with Huge Inventory and Expansion Opportunity
Open in the same location since 2018, this party supply warehouse has unmatched inventory and potential and boasts almost $1 million in annual revenue. The store currently has $450,000 in wholesale inventory, and that does not include what will be purchased for the busy Halloween season. About 30% of revenue comes from balloon purchases, and any buyer could expand the balloon decor business. There are backdrops, arches and complex designs that many party planners and customers are wanting to create for their events, and any new owner could really expand in this area. With over 20,000 square feet and $300,000 in custom shelving and fixtures, there is ample room at the location to add chair, table and other event rentals plus an entire bounce house rentals section of the business. These additions to the business model would add significantly to the bottom line SDE.
The business has a large social media following (9,000+ followers on Facebook and 1,300 on Instagram) plus over 10,000 contacts in their customer database, which ties to a sophisticated and effective loyalty program. The current owner isn't doing much paid marketing, but any buyer should take full advantage of the customer database and social media following to advertise. The e-mail contact list alone gives a new owner many opportunities to market and grow the business, especially if new sectors like the rentals are added.
The current staff is experienced and loyal and operations run smoothly on a daily basis. Crucial to the business are the vendor relationships that the seller has in place and those accounts and relationships are fully transferable, including a helium contract that gives some of the best rates available.
As you’ll see by the historical financials, getting revenues over $1.3 million is the key to profitability. With effective marketing, inventory management and the above listed additional streams of income, a new owner will see sales grow tremendously especially considering Houston’s growing population and economy.
2023 Revenue: $994,976
2023 SDE: $30,641
2022 Revenue: $1,256,490
2022 SDE: $56,669
2021 Revenue: $1,309,588
2021 SDE: $137,414
