Business Category: Miscellaneous Retail, Miscellaneous Services, Non-durable Goods, Other Food Stores, and Wholesale & Distribution Businesses
City/Region: Kent County
Cash Flow: $220,302
Equipment Value: $100,000
Founded in 2011, this fast-growing company is the organic food delivery leader in Michigan. Via long-standing relationships with local farms, small foodmakers and a network of distributors, the Company provides its core offerings of local & organic produce, pastured proteins, and a wide variety of other groceries both locally sourced and also curated from “trendy” national health food brands. Product breadth has been, and will continue to be, a huge growth driver for the Company. Not a single competitor offers this product mix to a large-scale market.
This consistent and profitable delivery service is well built for order picking, quality inspection, and delivery reliability and efficiency. Because of the Company’s superb service, the Business boasts great reviews online, rarely less than five stars, along with a strong history of new business through customer referrals.
As successful as the Business has been to this point, there remain huge opportunities for growth through continued expansion in Metro Detroit with a focus on an intentionally developed digital marketing strategy. To date, the primary focus has been building the business through farmer/foodmaker relationships as well as an emphasis on customer satisfaction through operational success and efficiency. The systems in place are built to scale up. The company has relied largely on customer referrals and word of mouth for new customer acquisition, leaving the door open for major growth through digital marketing initiatives.
The Company projects a 12.5% compound annual growth rate through the next five years without significant capital investment.
The owner would like to sell the Business to pursue new opportunities.
Opportunities For Growth:
While the Company expects 10-15% growth based on current budget levels, it is well-positioned for substantially higher growth. The primary competitor closed its doors in 2017, opening the opportunity for $12-15M in untapped customer demand in the Metro Detroit area. Since then, the Company has expanded in the area but hasn’t nearly reached the level that is possible based on the market that was proven. A refined sales and marketing strategy, with a specific focus on digital marketing, could be highly effective in helping the Company achieve high growth.
(1) Unique, High-Margin Product Offering
(2) Proven and Profitable Delivery Systems and Service
(3) Ability to showcase local farms
(4) Demonstrated historically proven market
Real Estate Available: For lease
Reason For Sale: Ownership has other opportunities he would like to pursue.
Number of Employees: 12