Manufacturer & Developer of a Patented Aerial Drone Accessory | 10,000+ Average Order Values | No Advertising Expense | Massive Growth Plan for 2024

Pending

Website Closers® presents a unique eCommerce Brand that manufactures and sells Drones and Drone Accessories, including an in-house manufactured and patented drone tether, which currently results in 90% of sales. The tether solves an enormous problem in the vertical and appeals to a vast audience in the US. Additional revenue is derived by reselling drones from prominent brands, and there is a considerable runway for the company to proliferate.

Business Broker Takeaway

Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for three important reasons:

1. Drones are a Big, Growing Market. As of March 2022, the FAA had registered over 850,000 drones in the US. 62% of registrations were for recreational purposes, while the remainder were for commercial operations. In addition, the FAA has awarded more than 269,000 remote pilot certificates. This indicates a vast and enthusiastic prospective customer base.
2. In-House Capabilities. The tethers contribute 90% of revenue and are patented and manufactured in-house under the company’s brand name. Additional income is derived from repair and maintenance services and reselling prominent brands’ drones. The team is developing its own drone specifically for its tethers, which will likely boost revenue dramatically.
3. Lower Risk. Very little seasonality in sales is experienced, and the company achieves an impressive $10,000 Average Order Value. While 60% of sales originate from its website, the remainder is from customers calling into the store, demonstrating the brand’s notoriety and word-of-mouth referrals despite performing no marketing.

Future Revenue Generation & Markets 

Management intends to forge partnerships with prominent online retailers and begin listing their range on Amazon to develop new and potentially lucrative revenue streams. In addition, Kickstarter or Indiegogo campaigns are being considered to boost cash flow for numerous expansion initiatives.

The customer base is broad, and the products appeal to various sectors. Aside from the core market of videos for school and college sporting events, including football, baseball, soccer, rodeos, boat races, and tennis, various other sectors are adopting drone usage. These include:

• Stadiums and Outdoor Venue Sanitation
• Surveying
• Security
• Fire Fighting
• Crop Dusting

Marketing Plan

The only marketing currently performed is interacting on social media groups that speak directly with high school football coaches. Considering the business enjoys robust sales with minimal marketing, an aggressive approach would be the most effective method for a buyer to achieve swift and considerable growth. Through thorough research, management has identified the most lucrative avenues to pursue.

Social Media advertising across multiple channels targeting the ideal customer base would immediately boost visibility and drive traffic to the website. Funding campaigns could prove fruitful, while advertising in drone-related industry publications is low-hanging fruit. Other viable options include obtaining sports association memberships and utilizing analyst articles, press releases, and trade shows to demonstrate the products and their capabilities.

Customer Base & Operations

Sales are focused on the US Market, and target customers comprise:

• Schools
• Entertainment Venues
• First Responder Agencies
• Commercial Drone Owners
• High-End Consumer Drone Owners
• Security Companies
• Military Departments

A hybrid inventory model encompasses manufacturing and stocking all tethers and DropShipping drones.

The partners serve as CEO, CTO, and COO. Two additional employees work for the company as repair managers and in manufacturing and battery engineering.

Contractors are hired to assist with manufacturing.

Summary

The market for drones and accessories critical to their use in commercial applications, such as tethers, has grown consistently and considerably. This company has spent considerable time and investment in R&D, obtaining intellectual property, identifying key sectors and customers, and understanding the vertical. Numerous new products, apps, and IPs also present tremendous scale avenues. As such, a buyer stands to gain a great deal of value beyond a healthy cash-flowing business through this acquisition opportunity.