Established 11-Year-Old SaaS Business Netting $55K+ in the TTM

San Francisco, CA (San Francisco County) (Relocatable)

Deal Flow, The #1 Websites Brokerage

Asking Price:$179,000

Cash Flow:$55,625

Gross Revenue:$82,314





Established 11-Year-Old SaaS Business Netting $55K+ in the TTM

Get Financing Save Print Share Valuation Report

Business Description

Near Passive Business with Stable Profits

With the first license sold in 2005, for sale is an established business selling video chat software. Website owners can purchase the various licenses to implement video chat technology on their website. In addition to the video chat technology, media servers and integration kits are also offered for sale.

In addition to the website, the customer database will be included. Ownership is selling the business to dedicate time to their full time job at an unaffiliated startup.

The business sells 5 different licenses, that differ based on the maximum amount of users that can connect simultaneously. Additionally, various services are sold ranging in price. Further, the business offers server hosting.

Although many services are purchased as one-time payments, re-occurring revenue makes up ~23% of revenue. Topline revenue in the Trailing Twelve Month’s was over $88,000, and net profits surpassed $61,000.

Current ownership works approximately 4 hours per week managing operations, while outsourcing 30 hours of weekly customer support. Owner’s time is spent on payroll, training, overseeing revenue, and responding to any issue

There are several growth opportunities the new owner could pursue, including optimizing the pricing model and focusing on business development activities.

Over the past two years, the owner has spent very little time or money on marketing, with the majority of customers being acquired organically.

The new owner can expect significant growth by investing in an entire suite of marketing activities, including social media marketing, content marketing, and targeted ads towards website entrepreneurs.

Another potential avenue to pursue would include hiring a commission only sales contractor to increase revenues through direct sales

The business could also see rapid expansion through launching an affiliate program due to their high average basket price allowing for the continuation of strong margins.

In recent months, there has been an uptick in recurring revenue through hosting services, now accounting for 23% of sales in the trailing 5 months. New ownership could continue with the recurring revenue model by split-testing a new monthly-recurring subscription model for the software. The recurring subscription model could also introduce a free 30 trial to improve customer acquisition and conversion rates.

Lastly, the business could achieve higher net profits almost instantaneously. An example of low hanging fruit, would be to switch payment processors from Avangate (4.9% + $2.50 per transaction) to another provider such as Stripe (to 2.9% + $0.30 per transaction).

Detailed Information

Home Based
This business is Home-Based

Listing Statistics for Premium Members

Ad#:1288310 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's terms & conditions before responding to any ad.

Contact the Seller

(from currently available funds)
Sign up for the BuyerNewsletter.
Learn to use your IRA/401K to buy a business: Guidant Financial (min. $50K needed in IRA/401K)
Contact Seller Loading

Griffin Sinn

Business Listed By:
Griffin Sinn Pty Ltd

Show Phone Number

View My Listings

Sponsoring Broker:
Deal Flow

Find out more...

Get more details about this business.

Similar Listings

Digital Doc

Franchise Opportunity
Capital Required: $85,750