Check out This Business For Sale

Man, I want to tell you a lot about this business, but I signed the NDA already and got to peek behind the curtain and fear I may trip myself up. But I can share enough to get you interested.

You can find the listing here but here is the high-level description:

“Founded in 1992, this Company provides high‐end commemorative gifts and services for the U.S Military, Government organizations, and visiting guests. This is accomplished by a specialized gift shop and shoeshine location, and a kiosk for public tours guests. The Company has developed a licensing strategy for products related to the U.S Military branches including the Joint Chiefs of Staff, and other Government Agencies. The Company has a vast selection of retail items including apparel, challenge coins, promotion and retirement gifts, drinkware, headwear, and souvenir gifts.”

Let me also say that this is a retail shop and normally I would never advise anyone to buy a brick-and-mortar retail store, especially as a first-time business owner. There is no contracted revenue and most customers are walk-ins, which is tough. You also have to deal with a lot of inventory, which can be stolen or damaged and is costly to buy upfront.

But this one might actually be worth looking at:

• Serves a niche clientele: military and government-affiliated people. What I like here also is that these customers are probably more likely to want to buy these products in the US, not from an Amazon re-seller, so you cut some of your risk against a large company like Amazon which makes it tough for small retailers like this.

• They have licenses to sell merchandise with government logos. I’m not sure how hard this is to get, but if I know anything about the government I’m willing to bet the process is opaque and slow. That’s good because it provides a moat for the business.

• It’s been around for 31 years. That took it through some major economic ups and downs and it’s still doing well (they have it listed as $925,000 in earnings last year). I like a business that has that kind of longevity.

• They have an online presence but don’t use it much. Note: Almost every business listing I’ve ever looked at will say that they could increase sales vie more online marketing. Duh- that’s easy to say. But if this business is 31 years old I’m willing to bet that the owner is not super tech-savvy and doesn't spend a lot of time on their online presence.

• They have a 34% EBITDA margin. Normal is more like 15-20%. Now- I am very sure they have some inflated numbers that will bring that percentage down, but on the surface, this looks like it is a very profitable business.

Ok first- let me clue you in how you can figure out where this might be: focus on “tours.”

This place focuses on the military and they offer tours and are located in D.C. Right off the bat, I have a good idea of where this is located. I’m guessing they might be the ONLY gift shop at these locations- which is amazing.

Do you have to be a veteran to own this business? No. But I’m willing to bet the owner is and would prefer to sell to a veteran. It also sounds like it would help interacting with customers.

If you end up looking at this business and signing the NDA- let me know. I’d be happy to discuss it with you. I may even try and take a go at it myself.

-Mark

The Veteran Professional