"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Key Highlights
This is an emerging digital venture in the Health and Wellness sector, capitalises on the growing demand for wellness and personal care products through its e-commerce platform. Established as a primary player in online retail, the company emphasises both product quality and customer experience to stay competitive. At its core, they are driven by a dual revenue model: e-commerce sales and direct shipping. Utilising an efficient technological infrastructure, the brand manages seamless transactions and logistics.
Operations
The company primarily operates through its digital storefront, powered by Shopify, which provides a comprehensive platform for managing inventory, orders, and customer interactions. This robust e-commerce channel is further supported by a strategic direct ship model, which allows products to be shipped directly from suppliers to customers. This approach not only reduces inventory costs but also enhances delivery efficiency, benefiting both the company and its clientele.
The brand employs a targeted marketing strategy to attract a broad demographic interested in health and wellness products. By leveraging social media and digital advertising, they effectively expand the market reach. Additionally, partnerships with influencers in the wellness industry amplify brand visibility and drive traffic to their online store. These multifaceted operations ensure a steady stream of revenue and position them as a dynamic entity in the competitive health and wellness market.
Technology
At the technological helm are key platforms that integrate seamlessly to support its e-commerce and direct shipping operations. Google Analytics serves as a vital tool for the company, offering detailed insights into customer behaviour, online traffic, and sales trends. These analytics inform strategic decisions regarding marketing efforts and inventory management.
Shopify, as the backbone of their e-commerce operations, ensures efficient management of their online store, boasting features that aid in payment processing, product syncing, and order tracking. Complementing these platforms is Xero, a cloud-based accountancy software that handles financial records, invoicing, and compliance. Together, these technologies create a cohesive infrastructure that drives the business growth and adaptability in a fast-paced digital marketplace.
How long has the business been established?
Started in 2014 and legal entity registered in 2017
How long has the owner had the business?
Since inception
How does the business operate on a daily basis?
Customer Engagement & Community Support
⢠Engaging with the online community (App & Socials) to answer questions, provide motivation, and support members.
⢠Posting daily encouragement, transformation stories, and challenges to keep members engaged.
⢠Responding to inquiries via email, social media, and chat support.
⢠Assisting members with technical issues, program guidance, and product questions.
Program & Content Management
⢠Running the Fat Loss Challenges
⢠Managing start dates, participant onboarding, and engagement during challenge periods.
⢠Sending daily or weekly reminders, motivation, and progress tracking tools.
⢠Ensuring all program materials (meal plans, movement guides, PDFs) are up-to-date and accessible.
⢠Refreshing digital content and answering member FAQs.
E-Commerce & Product Fulfilment
⢠Processing and ship orders from Shopify
⢠Tracking inventory levels and reordering stock as needed.
Marketing & Sales Tracking:
⢠Monitoring daily sales performance of products and programs.
⢠Running ads, email campaigns, and social media promotions to drive sales.
⢠Reviewing customer feedback on products to improve offerings.
Business Operations & Growth
⢠Reviewing metrics like customer retention, engagement rates, and conversion rates.
⢠Adjusting marketing strategies based on whatâs working.
⢠Developing new digital products, challenges, or collaborations.
⢠Collaborating with wellness influencers or coaches for brand awareness.
⢠Arranging sponsored content, testimonials, and affiliate programs.
Summary: A Streamlined Yet High-Touch Business Model
⢠Community & Coaching: Engaging daily with members for support & accountability.
⢠E-Commerce Operations: Processing & shipping wellness products efficiently.
⢠Marketing & Content: Driving growth through digital content, ads & social media.
⢠Program Management: Running the challenge cycles and updating resources.
⢠Business Strategy: Tracking data, improving offerings, and scaling the brand.
How are the clients attracted to the business?
The clientele is diverse, ranging from young adults seeking trendy beauty products to more mature customers focused on health and wellness. The company's commitment to offering high-quality, competitively priced items has built a loyal customer base that values both product innovation and affordability. Through personalised marketing and exceptional customer service, they maintain strong relationships with their customers, encouraging repeat business and organic growth via word-of-mouth.
Customer feedback is highly prized using insights gained to continually refine its product offerings and improve the shopping experience. Moreover, educational content and expert advice on health and wellness provided on their website and through social media channels foster a knowledgeable community, further solidifying customer loyalty.
They attract customers through a multi-channel marketing strategy that combines social media, community engagement, paid advertising, word-of-mouth referrals, and brand positioning.
What Advertising/Marketing is carried out?
- Social Media Platforms â Total 100K (organic traffic)
- Facebook Advertising
- Google Advertising
- Email Marketing 28 000+ subscribers
- UGC & Content Creators
- Word of mouth / Testimonials
Does the business have any contract work?
No
What competition exists?
There are many diverse types of weight loss businesses in South Africa:
- Nutrition coaches
- Dietitians
- Weight loss centers
- Nutrition influencers
- Group coaching programs
What are the seasonal trends?
- New year (Jan): Women want to lose weight and get in shape
- After Easter holidays (April): Women feel guilty from overindulging into the holidays and looks to lose weight
- Winter (June): Women start a weight loss journey in preparation for summer
- Spring (Sep): Women want fast results to get beach body ready
- November (Black Friday): Women stock up on supplements for the new year.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Because this is an online business, there wasn't much of an impact during the daily operations and they could continue business as usual. Business is also able to continue shipping physical products as the health and wellness supplements fall into essential items.
There was a slight increase in sales months after COVID hit as many people had gained weight during lock down and were looking to lose weight and improve their overall health and wellness.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Due to the surge of interest in online businesses after COVID-19, here was an increase in competition with many small players joining the market. To ensure they maintained the online presence, they introduced new weight loss programs, products, added value resources as well as a brand refresh. They also ensured their prices stayed competitive and continued to offer incredible customer service with speedy shipping services.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Tax clearance certificate; the up-to-date VAT returns as well as the VAT registration certificate.
Are there up-to-date Management Accounts available?
Yes
What percentage of the business is cash/credit?
No credit.
How could the profitability of the business be improved?
Since its launch in 2017, they have steadily developed into a viable business entity, demonstrating resilience and agility in the Health and Wellness sector. The adoption of e-commerce and direct shipping models has proven financially beneficial, allowing the company to maintain a healthy balance sheet with reduced overhead costs. By continuously evolving its product lineup while adhering to a customer-centric approach, they have cultivated a thriving business model poised for long-term success. Future forecasts suggest continued growth as the demand for online health and wellness products accelerates, offering promising prospects for further market expansion.
- Eliminate nonessential expenses
- Increase product / program pricing
- Bring in new fat loss product and programs
- Upsell to current customers
- Offer online weight loss education workshops / events
- Offer an affiliate program to customers (referral / word of mouth)
- Get agents in other countries to sell and supply - Go international
- Sell and supply beauty salons / Dr offices / chemists nationwide - In store purchase
- Offer high ticket one on one / group coaching services
- Bring in weight loss coaches who sell under the brand (Franchise)
- Expand market to men, teen, and pregnancy nutrition programs (business has a concept and program for Men)
- Expand market to branded foods, readymade meals, and supplements
- Expand market to exercise programs, gear, and events
- Expand market to life coaching and accountability
- Increase Facebook / Google ad spend
- Onboard a brand ambassador/ personality/ celebrity / influencer
Is Seller finance available and for what amount?
No.
What is the total staff complement?
1
Give a breakdown of staff/ functions/ length of service?
Run by Owner for last 11 years- However the business does have independent contractors such as marketing agencies, brand manager and social media agency.
Roles and responsibilities include:
- Strategic planning
- Branding and design
- Financials (budgets)
- Web design and maintenance
- Daily operations (process orders, general admin etc)
- Customer service (coaching and enquiries)
- Social media management
- Program development and maintenance
- Oversea service providers
How involved is the Owner in running the business?
100% involved
When does the current lease end?
This is a Work from Home business and doesn't lease a premises
What are the main assets of the business?
HP Laptop
Are any items not included in the sale?
Above assets are excluded and should be purchased by the buyer
Strengths?
- Low running costs
- Flexible working environment
- Fantastic reputation
- 11 years of social proof via testimonials, before and afters, reviews etc
- Program and products that work
- Competitive pricing
- Speedy service (deliver within 1-3 days)
- Quality products that work
- Added product value such as resources, coaching, recipes etc
- Large audience on social media platforms
- Unique and modern branding
- Loyal customer base
Weaknesses?
- Business has outgrown owners' capabilities
- Modest advertising budget
- Lacks long term vision
Opportunities?
- Onboard a brand ambassador / Influencer / Celebrity
- Work with micro / macro influencers
- Service expansion, such as group / one-on-one coaching, weight loss app: offering access to recipes, accountability, community, shop
- Market expansion - Fitness, health, and wellness
- Product expansion - workout gear, readymade meals, branded food items etc
- Gain attention by offering value such as free workouts, cook with me challenges, coaching sessions etc
- Bring brand into beauty salons and Dr offices (offline)
- Leverage off affiliate/ referral marketing
- Offer an online monthly membership for recurring income
Threats?
- Increased competition online
- Increasing cost of online advertising
- Increasing cost of products/ transport
- Shift in customer spending habits
- Uncertain economic environment
What is the reason for the sale?
Owner is selling the business due to lifestyle changes. They would like to spend more time with the children and won't be able to grow and scale the business
Why is this a good business?
Market potential size:
1. Target Demographic: Women Aged 30-55
Total Population: As of 2024, South Africa's population is approximately 63.2 million. âFemale Population: Approximately 51% of the population is female, equating to about 32.2 million women. âAge Distribution: Women aged 30-55 constitute around 20% of the total population. âCalculation: 20% of 63.2 million = 12.64 million women aged 30-55.â
2. Interest in Weight Loss Programs:
Obesity Prevalence: South Africa has one of the highest obesity rates globally, with a projected increase in obesity by 47.7% in females by 2025. âhttps://mydynamics.co.za. Weight Loss Attempts: Studies indicate that a significant number of South African women are actively trying to lose weight. â
3. Estimated Market Size
Interested Demographic: Assuming that 50% of women aged 30-55 are interested in weight loss programs:â Calculation: 50% of 12.64 million = 6.32 million potential customers.â
Conclusion
Based on these estimates, the market potential size in South Africa is approximately 6.32 million women aged 30-55 who are interested in weight loss programs. This sizable demographic presents a significant opportunity for targeted marketing and service offerings. This business offers effective fat loss programs and all natural supplements that provide incredible, lasting results at competitive prices.
Over the years, the business has collected hundreds of testimonials from loyal customers along with, weight loss before and after pictures and positive 5-star reviews. The programs, products as well as world class customer service makes them the number one choice for women looking to lose weight. The customers have practically done the marketing for them as their results speak for themselves. Word of mouth has been the strongest asset.
This business allows one to work anywhere in the world and is exceptionally appealing due to the freedom this offers. An online business will often allow you to eliminate some of the huge costs associated with an offline business. Not only can you eliminate things such as pricey office or retail space and long-term lease commitments, but you can also eliminate having to tie up your money in stocking inventory. A huge benefit to this business is the strong and long-standing relationship with the product supplier who handles all the physical stock and coordination. This means the business is not responsible for large financial layouts in terms of stock, warehouse fees, staff, coordination etc. The supplier handles the physical stock as well as the transportation and returns of customer orders within South Africa.
This business offers a plug and play solution as it comes with an already established audience via social media and email marketing platforms. This business also has the potential to scale and expand into other markets as it is not defined or limited to space or location and can market to a worldwide audience. This business can tap into broader industries such as health and fitness.
This is a perfect business for someone who is passionate about health and wellness and wants to make a positive difference in people's lives while creating a custom work environment and limitless earning potential.
Annual Turnover Amount between R 500 thousand and R 6 million
