Seller Financing Available
Make money with Stuffed Animals
A fun business that schools love
I am selling my plush mascot business that has been in business for 14 years. This is an excellent business for someone who wants to own his or her own company and generate a healthy income. The business specializes in selling plush mascots to schools in bulk from 3 inches to 2 feet tall. Schools use them to give to incoming students, for fundraisers, incentives, and for pep rallies. We have over 2000 different mascot and color combinations allowing us to sell a personalized mascot to the majority of all schools in the United States. Our customer base is in the thousands so we have a healthy base of customers. We are the only company with this kind of inventory giving us the capability of serving the market in a unique way.
History of the Company
K-12 Mascots started in the late 90’s when the owner bought several thousand stuffed bulldog mascots and then sold them all to schools. Being so successful, the next year he bought the bulldogs in several colors and he sold out of all of those. After a few more years of growth, by the early 2000’s, K-12 mascots was doing over a million in sales with a large profit margin. In 2005, the owners took out a massive line of credit and spent it all on over $600,000 worth of a new type of inventory. The owners then took a back seat to management and hired a family member who stopped marketing completely and managed the business poorly. With no marketing or inventory control, and a hefty line of credit, the owner declared bankruptcy and sold the business to the next owner. That owner didn’t have any money to invest in the business, and he didn’t know anything about marketing, so since mid 2008, he would take orders from old customers that called or came in online and filled them. He didn’t attempt to acquire any new customers or make any attempt to call on previous customers. In 2012, I bought the company to turn it around. In the mid 2000’s sales were in excess of 1 million a year, but they were down to $27,000 a year when I bought it. I spent 3 months organizing the warehouse and getting rid of obsolete inventory as well as implementing some systems. Then, over the next year, I grew sales to about $120,000. Currently, I work about 3 hours a week from home on this business. This business could triple in sales over the next couple of years with someone who had the time and energy to do some simple marketing and sales. The reason I am selling is because I own 2 other businesses that are consuming most of my time and energy.
Operations of the company
The company now has a part time employee that takes all orders and ships them out. There is a 5300 square foot warehouse and office by LBJ and Skillman in Dallas. The new owner can decide if they want to continue to warehouse the inventory in Dallas, or move it to a new location.
Inventory (adjusted for obsolete inventory)
COGS - $40K
Rent – $24K
Labor - $8K
Shipping – $6K
Marketing - $2K
Office/Utilities - $2K
Misc - $1
Total Expenses - $83K
2013 Cash Flow
Price is significantly below inventory and FF&E cost and a multiplier of 2x revenue and 6.5x Cash Flow. The past success of this company shows the potential and the current turnaround shows that it is heading in this direction.
This will be a great business for someone who wants to have a steady income or for someone who wants to bust their tail for a year and flip all the inventory for a substantial profit. The inventory will sell for just over a million dollars at our current wholesale price we charge schools.