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Fastener Business

Fastener Business

30 Years of Business

Erik Holmes
July 11, 2024

OVERVIEW
Fastener Retail Business with SBA Financing & Growth Potential

Business Description

This family-run industrial fastener retail company has been serving local customers in the Pacific Northwest region for over 30 years. The business focuses on local customers such as farmers, processing plants, manufacturers, and government sites in a rapidly growing region.

The combined office, warehouse, and shop space is conveniently located in a commercial district with easy access to main thoroughfares and highways, allowing easy access to the shop for roughly 65% of their customers. The six-person staff includes a salesperson who also takes orders and makes deliveries to local customers. All inventory, warehouse equipment, and a delivery truck are included with the sale, making for a smooth transition of current operations.

The business is also pre-approved with SBA financing with 20% down.

Growth opportunities exist through expanding into online sales, increasing sales and marketing activities, increasing the hours of operation for the shop, and adding to the sales team. The owners are interested in retiring but will consider working in an advisory capacity for a few months to ensure a smooth transition.
This is an established business. This is not a new franchise or start-up opportunity.

FUGLYNESS RATING
Have You Ever Dreamed of Selling Fasteners?

Although most people probably never dream of selling fasteners, this is actually a pretty common business in most communities. Think about it: screws, bolts, nuts—these little guys are everywhere, holding our lives together, literally. It's not difficult to imagine quickly getting a grip on the operation (pun intended), and I don’t believe it will scare too many people from taking a look.

So, what’s the deal with this fastener business? It’s family-owned, and the owners are ready to retire. This is a big deal when it comes to financing the company. Retiring folks often prefer a steady stream of income instead of a lump sum that’s fully taxable. Picture them on a beach, sipping cocktails, while the checks keep rolling in. They might even name their drinks after you!

Now, let’s talk Fuglyness. On a scale from 1 to “Oh my gosh, what am I doing with my life?”, I’d give this business a solid 7 out of 10. Selling fasteners isn’t going to make you the life of the cocktail party, but you won't be hiding in a corner either. In fact, you might even get some intrigued looks and questions like, “So, you’re the reason my IKEA furniture stays together?”

Imagine this conversation: “So, what do you do for a living?” “I sell fasteners.” “Fasteners?” “Yep, screws, bolts, nuts—you name it, I’ve got it.” “That’s… actually kind of interesting. Tell me more!”

See? Not so bad. You’ll be the talk of the party, maybe even considered the "fastener guru." And let’s be honest, how many people can say they make a living out of keeping the world screwed together?

So, if you’re in the market for a business that’s stable, reliable, and just fugly enough to be interesting, this fastener business might be your golden ticket. Get ready to bolt into a world of opportunity, and who knows? You might just find that selling fasteners is the perfect way to keep your financial future tight and secure.

ASKING PRICE
$650,000 not Including Inventory

Considering the profit plus the owner's salary is $267,000, the price is fairly reasonable. However, there's the issue with the inventory—$450,000 worth of stock. How the owner offers this up could make or break this deal. If you could negotiate a creative deal to pay as you go for the inventory, you might be able to pay it off within a year. The gross revenue is $1,100,000, which means there's a lot of product turnover. Basically, fasteners are flying off the shelves like hotcakes.

Imagine the inventory dilemma as a game of “Deal or No Deal.” You need to make the right choice to avoid ending up with a warehouse full of screws and bolts and no way to sell them. Maybe you could offer to pay for the inventory as you sell it, kind of like a “pay-per-screw” plan. That way, you won’t be drowning in debt—or in fasteners.

Financing Options

SBA financing is approved with 20% down, and the owners are willing to provide some financing. This might just be a purchase that could happen with little to no money down if you're willing to grind it out for a few years, paying down debt. Picture yourself as the Rocky Balboa of the business world—fighting your way to financial freedom one fastener at a time.

OPERATIONS
6 Person Staff includes 1 Sales Person

The Team and the Tech

Now, let’s talk staff. This six-person dream team includes one sales pro who’s probably on a first-name basis with every contractor in town. But managing hundreds or thousands of product SKUs? That's a challenge that could make your head spin faster than a power drill on overdrive. Enter inventory software like FishBowl. This tech wizardry will be your best friend, tracking inventory and sales like a hawk.

The most important task would be to discover where most of the sales are coming from. After 30 years in business, my guess is that a significant chunk of sales comes from loyal, repeat customers. You know, the kind who’ve been buying bolts from this place since dial-up internet was a thing.

Knowing how to use Shopify, do SEO, and build sales pages would be a huge asset in this business. Imagine transforming this fastener haven into an online powerhouse, capturing new business and driving up revenue after the purchase. You'd be like the Bezos of bolts, the Zuckerberg of zinc screws.

SOPs: The Unsung Heroes

Every position should have SOPs (Standard Operating Procedures). If they don’t, as the new owner, it’s your mission to document every function in the business like you’re creating the next great American novel. Seriously, detailed notes on how to do everything from answering the phone to organizing the nuts and bolts will be invaluable for new and existing employees.

Picture this: a new hire walks in, wide-eyed and nervous. You hand them the SOP manual, a veritable tome of fastener wisdom. They open it, and it’s like discovering the Dead Sea Scrolls of the hardware world. Step-by-step guides on everything! They might even thank you with a "Hallelujah!"

Overall Impression

Overall, this looks like a decent business with a 30-year history that could probably use some fresh eyes. Imagine stepping in and modernizing a business that's been around since before the internet was a thing. You'd be like the Tony Stark of fasteners—bringing in innovation, boosting sales, and keeping everything tight and secure.