Website Closers® presents an exceptional Outdoor Patio Business with Multiple Sales Channels operating from a number of online channels and websites.
The journey began in 2006 when the company emerged with a mission to offer high-quality outdoor furniture at mid-range prices, addressing a noticeable gap in the home furnishings market. The enthusiastic response from the public propelled rapid growth, leading management to venture into designing and manufacturing their own brand of products just 3 years later. They extended their offerings to both retail and wholesale customers, resulting in a diverse catalog of custom furniture options. In 2017, the company proudly opened its retail showroom, further solidifying its reputation as a leading player in the vertical.
With SBA Pre-Qualification, this company has already gone through an initial review with our lending partners. Following this review, a term sheet was issued that confirms that the company looks good for an acquisition through the SBA lending process. Therefore, Qualified Buyers can purchase this business for as little as 10% down, while amortizing the balance of the bank loan for 10 years. And while interest rates are a little elevated at the moment, the loan can always be refinanced in 2024 or 2025 to lower the rate accordingly. And in any event, SBA Loans offer buyers the lowest interest rates on the market and the quickest ROI on initial investment.
The Industry
The global outdoor furniture market is currently valued at $44.23 billion. It is projected to grow at a rate of 5.7% until 2030. The progress is fueled by various factors, such as the booming real estate market, homeowners’ desire to create inviting outdoor spaces for family gatherings and entertaining friends, and the increasing demand for stylish and comfortable outdoor furniture in hotels, resorts, restaurants, and public gardens. The unified aspiration to enhance outdoor areas to make them aesthetically pleasing and comfortable has further driven the industry’s expansion.
Recognizing these trends, the founders have astutely adjusted as necessary over the past 15 years and developed a turnkey operation with a comprehensive infrastructure primed for scalability.
Catalog & Sales Channels
With an extensive product range of over 18,000 SKUs, the company offers a blend of private-label products and exclusive retail brands through multiple sales channels. These channels include direct-to-consumer sales, business-to-business wholesale, and a retail showroom. Management actively adds new brands regularly, and this impressive development consistently attracts retailers seeking to collaborate.
D2C website and wholesale channels each account for 40% of revenue, with the remaining 20% derived from sales through the retail showroom located in California. While the store is profitable on its own, it was really designed to give the company access to all the top outdoor furniture brands that can be sold on the company’s flagship website. The store also allows the company to provide better customer service to online customers since the inside salespeople can experience the products firsthand and share their knowledge with eCommerce customers.
Additionally, the physical storefront gives them important design ideas to create their own products based on both aesthetics and historical sales volume. The store has given ownership a lot of industry attention which has resulted in being nominated for the ICFA Apollo award for best casual furniture store in the USA.
Finally, have a retail storefront also gives the company a leg up against other online eCommerce companies in that they have the ability to create more video and image assets for their online sales.
While this does have a California Retail Storefront, this is primarily an eCommerce and Wholesale business and there is no need for a new owner to reside in or near California in order to purchase this business. Management is in place to facilitate these operations if need be.
Operations
The company’s customer base continues to expand, driven by substantial organic traffic, effective paid advertising, and enthusiastic word-of-mouth referrals. The reputation it has developed among homeowners and wholesalers seeking stylish and durable patio and outdoor furniture has contributed significantly to the business’s success.
Another crucial element is its ability to meet growing demand through a hybrid inventory model. This approach enables the company to provide customers with an extensive catalog of patio furniture, emphasizing design, available at mid to upper-end price points.
Notably, the business remains resilient to seasonality, experiencing robust sales year-round. Its customer demographic primarily comprises middle to upper-class homeowners with disposable income to invest in enhancing their outdoor living spaces. This diverse customer base spans different generations, and the company’s data indicates that customers are willing to pay a premium for high-quality products, recognizing them as a long-term investment.
Operations are meticulously systemized, with up to 50 daily shipments dispatched from a well-equipped 38,000-square-foot warehouse, which holds approximately $1 million in inventory to meet demand.
Marketing & Scale
The marketing strategy is straightforward yet effective. Word-of-mouth referrals remain a strong sales driver, complemented by PPC ads and robust SEO efforts. The in-house SEO team focuses on creating content that ranks high for popular keywords, generating 63% of the website’s traffic organically.
Moreover, numerous opportunities exist for further top and bottom-line growth. Implementing an aggressive social media marketing campaign would likely boost traffic and conversions immediately, while optimizing email and SMS marketing would promote upselling and increase customer lifetime value. The successful revival of the affiliate program could also yield lucrative results.
Human Resources
An experienced and dedicated team includes a full-time warehouse manager, three sewists, a showroom manager, two salespeople, two employees handling order processing and customer service, an inventory manager, and two professionals overseeing online marketing and web development. These team members are willing to continue working with a new buyer, and the owners are committed to an extended and smooth transition to ensure sustained profitability and proliferation.
