Profitable Water Purifier Company With Recurring Income (Perfect for 1 - 2 man operations)
About the Business
The company provides Water Purifiers to residential and commerical customers. The company offers both upfront sales or rental services and is on track to acquire 300 - 500 customers per year.
There is recurring income in the form of filter replacement for customers every 6 - 12 months and annual filter replacement revenue is expected to be around $45,000 to $90,000. Even if there is no new sales, the new owner can expect to earn up to $7,000 per month just by servicing the existing clientele.
The company has zero debt and is in a net cash position with no long term liabilities along with healthly inventories level.
Currently, the company is operating with just 2 headcounts on a part time basis. A vehicle is required for operations and a standard salon car will suffice. There is no office/ warehouse/ showroom which means there is little or no overheads. Marketing is done digitally by 1 headcount while the other manages operations. Currently, the pair is working just over 8 days every month.
The company is ACRA registered Pte Ltd and also holds necessary Safety Mark certifications from Enterprise Singapore. A CRM and accounting system are in place and business documents are up to date. A webstore is live and operational with live transactions fully enabled. Social media accounts are active with high new user interaction as well as very good reviews from existing customers. 10% - 15% of new business are from referrals as well.
The new owner may choose to maintain the current operations or go for expansion plans. There are several business expansion plans laid out by the current owner to grow revenues to $300,000 per year with a healthly 6 figure net profit pre-tax. A more ambitious owner should be able to hire full time employees and turn it into a million dollar business if able to execute correctly.
This business would be ideal for a small operation of 1 - 2 persons. The business can be managed where 1 person manages installation while the other manages admin and marketing. The business doesn't require much operating capital to maintain organic growth which is projected to hit $350,000 revenue with $180,000 gross profit annually by end of 2023.
Threats and Competitive Landscape
As with every industry, there are competition out there. However, due to each competitor's circumstances and the high density population of Singapore, there is a big enough market to support all the players in the industry. There are generally 3 market segments and this company fits into the mid market space. We are currently the market leaders in our segment in terms of number of units sold.
Demand for our products are generally pegged to number of new home owners. A big portion of our customers are new BTO home owners. With many BTO projects coming up in the next few years, the demand for water purifiers will also grow accordingly. The new owner will be in position to leverage on the growth of BTO projects in the next 5 - 10 years.