Archive or original post. Top post is being edited to add business plan, summarize available information, etc.
Seeking voting partners on this venture if at all possible.RecycledMoney - Placing an established, profitable business in your hands.
A full overview of this project with detailed information on all aspects of this business will be posted soon. The following is a summary of that information.Southern Appliance is being created to buy and grow an established and profitable appliance business in north Louisiana. We will be working aggressively to increase profits by optimizing current revenue streams, adding more products and services, establishing new locations, and developing a shopping website for a very profitable arm of the business.
I am the sole owner of the business being purchased. It is an established, successful used appliance store that has been in operation since 2008. I managed that business for several years, bought a 49% interest in 2011 and bought the business outright in early 2013. Over the years I have worked tirelessly to expand operations from a 1,300 square foot building in 2008 to a now 15,000 square foot multi building complex. The lease on the last 4,600 square foot building was finalized and signed today and I am now focused on continued growth.
Current OperationsThis business currently benefits from three main sources of income as outlined.
1) - The main source of income since inception has been the purchase of non working household appliances which are repaired and sold. We currently sell between 25 and 80 major appliances per week. We have a contract with multiple chain stores and receive all trade-in appliances by the 18 wheeler full from each location.
2) - The secondary source of income for this business is used parts sales over the Internet. I currently use eBay for all parts sales but will be expanding operations to both Amazon and a custom storefront. Because of limitations on space, time and the dollar value of items I was allowed to list on eBay I was not able to fully focus on this aspect of the business until recently. Our eBay limit has been increased to $125,000 or 2,500 parts listed and grows monthly if fully utilized. Earlier this year I paid a contractor to list over 1,000 parts with a value of over $50,000 on eBay and that resulted in $10,242.85 in sales for April.
3) - The final source of income for this business is scrap metal. Any appliance that is not cost effective to repair is parted out with the unusable parts sold or kept for business use and the rest is for scrap. We currently sell approximately 15,000 pounds per week which at the current rates comes out to around $1,200 and have sold as much as 30,000 pounds in a single week.
We currently employ 5 full time workers and contract work from a few others as needed.
We now lease 15,000 square foot consisting of three buildings on the same property. Today I finalized the lease on the last building which added 4,600 square foot to that total.
Goals For Current Income SourcesI am now working to increase profits in every aspect of this business and to expand into new areas.
While appliance sales have always been our main source of income we have mostly focused on wholesale to other dealers and budget retail. With the new contract came a huge influx in appliances and it took time to adjust so we were short on manpower to repair, clean, paint and sell for full retail. We also lacked a good showroom which has now been remedied with the lease of the final building. We often sell appliances for 30% to 50% less than our competitors, most of whom are now out of business.
Similarly, used part sales are far from optimized. It has taken more than a year to increase the total dollar amount limitation on eBay to an acceptable level. The last step is getting eBay fully utilized then adding items to both Amazon and a custom web store. Over $10,000 was sold on eBay in April using only half of available listings but this can be increased to $20,000 to $30,000 per month almost immediately with enough manpower to clean, inventory, list and ship these items. By using Amazon and a custom store to list items that are less likely to sell this can be increased even further. Due to these same limitations we don't always remove every part to be sold. Because of the cap it makes no sense to list items that are cheaper or slower to sell when a more expensive or quicker to sell item can take it's place.
And finally, our scrap metal operations are not optimized. In an effort to save manpower and free up space we often sell full units minus their working parts for tin which pays less than other items. By removing all iron, motors, copper and other metals to be sold separately the income derived from scrap metal can be increased significantly.
Expansion & Future GrowthThere are a multitude of ways to expand operations and add new revenue with this business. We can add locations, find more sources for appliances, add a delivery truck, add a service truck and technician to do service calls, sell new parts and new appliances, add rent to own financing and more. Many of these are easy to implement with enough capital to get them off the ground. I will be posting a very comprehensive overview of this business soon and full details on these and other options will be discussed there.
TransparencyEvery aspect of this business will be fully transparent with updates and reports provided constantly. There will of course be a monthly report but we will be posting consistent updates several times a day to reflect all sales or other income, expenses and anything relevant to the general operation of this business in order to keep all owners well informed on business dealings. If legal I will install security cameras in the showroom so that owners can view transactions as they happen.
This OfferI am currently selling up to 30% ownership in this new company in the form of actual percentage ownership and equivalent voting rights. Funds will be used for the purchase of the established business from myself and utilized to aggressively grow this business in all areas deemed worthy by the owners.
To keep things simple I am dividing this 30% interest into 300,000 units.
Each unit is .004 BTC (approximately $1.80 at current time) but will be adjusted accordingly if the BTC rate fluctuates more than 10% from it's current position.
Units are just a simplified way to measure ownership percentages per fraction of BTC so less than "one unit" can be purchased but we will need to discuss some things beforehand.
To discuss becoming a partner please PM for fastest response or email
[email protected].
Profit SharingEach partner will receive a percentage of all profit with payments being made daily (estimated) and monthly (balancing) in the following manner.
Daily Management FeeA daily management fee of 10% of the
gross income will be shared between all partners based on percent of ownership.
In Addition, I am waiving all management fees owed to me until the point that all other partners have fully recovered their initial capital contribution. For instance, if 10% of the business is sold I will have ownership of 90% of the business and be due 90% of the management fee. Instead, that money will be distributed as profit to all other partners that have not fully recovered their initial capital based on the % of ownership held.
Monthly DistributionEach month
100% of the total remaining profit will be distributed to all partners based on percentage of ownership.
Of NoteI will perform work as operations manager for no fee until all partners that provided capital contributions have recovered their outlay.
Most issues will be voted on with me abstaining from voting. I plan only to vote if needed to avoid disaster / protect your capital.
The full terms of the purchase agreement of this business by the new company will be discussed in the full overview.
In the distant future I may decide that seeking more capital contributing partners is a good idea but this would be handled by selling some of my percentage in the company and
not by diluting your ownership percentages.
I have been in discussions with both a lawyer and CPA to figure out the best structure for this new business but nothing is final yet. Depending on setup there may be differing tax obligations. Feel free to contact for information.
Discounted / Traded InterestIf you are interested in providing capital contributions of .5 BTC or more please contact me to discuss the possibility of a lower rate per unit.
If you are interested in trading services that you feel would benefit this business please contact me to discuss a work for interest situation.
In ConclusionAgain, this is a very brief summary and a very thorough overview will be posted soon. I am fully aware that all pertinent information is not available in this summary and that will be addressed in the overview.
Please feel free to ask any questions. Trolls will be answered only if the response will be of benefit to others.
Please PM or email
[email protected] to discuss becoming a partner or anything else you'd like to keep private.
Thank you.
Edit: Changed ticker to [ApplianceStore]
