History
The business is a Melbourne based, Victorian focussed, onsite Computer and IT Support Service Provider, that commenced trading in 2016.
The current works full time as the General Manager and is supported by 3 trained techs, and outsourced or virtual resources (as detailed below).
The owner grew the business successfully but was effectively closed down in early 2022 as a result of Covid19 related restrictions. Pre-covid and operating as a traditional tech help business achieved circa $500K in annual revenue.
After a corporate restructure the business restarted trading part way through FY22. Because of its strong online position and marketing strength the business has been able to rapidly climbed back to annual revenue of circa $494K in the FY24 year (1) without an increase from the current base of 3 fully trained technicians plus General Manager (the current owner), and (2) by servicing only the leads that are within easy reach of their Melbourne headquarters
Existing core business services span PC Repairs & Upgrades, Laptop Repairs & Upgrades, Mac Repairs, WIFI & Networking, New Computer Setup, Virus removal, Software Repairs, etc plus sales of new computers, modems, hard drives, routers, and networking equipment.
Future
The business has an entrenched online marketing presence including;
The 2nd highest industry Domain Rank of 45
The capability to efficiently generate very low-cost leads. Currently they are generating around 600 organic leads per month (Victoria only) at approximately $6.41 (trending to $5 with continuous improvement in SEO rankings) VS between $50 and $70 for competitors with a without a strong organic online presence and who have to compete for and rely on limited Google AdWords stock). In a market where the average Sale Value is $450 this provides this business with a very significant advantage
There are a number of different pathways to capitalise on the existing market position and documented potential of the business. You could;
Scale the existing business nationally, from its current Melbourne base, and use sub-contractors to fulfill the work (same business model as Geeks2u [industry leader])
Bolt on an existing Computer / IT Support or Managed Service Provider and more efficiently use existing technical support staff, or diversify existing client base and/or revenue streams
Bolt on to an existing Computer Repair Retailer (physical or online) to provide additional onsite service and/or cross sell other products & services
Operate as is business in a box for an entrepreneurial idependent operator from the industry
Franchise the business by state
Convert to a pure online business (as a lead generation platform) and sell leads to direct competitors
Financials (including revenue potential)
In the most recent financial year the business achieved annual revenues of circa $494K (ex GST).
The major components of current revenue is broadly as follows;.
Sales Hardware (Residential) 20% - 30%
Sales Onsite Services (Residential) 35% - 50%
Sales Workshop Repairs & Upgrades (Residential) 5% - 15%
There is a very significant opportunity to take this business to the next level.
Based on detailed lead data (captured over the last 27 months) and financial information the business the owner forecasts the following annual revenues as achievable;
$1.23M (inc GST) as a Victorian based business
$4.9M (inc GST) as a National business
Business Assets
There is a suite of unique and valuable assets that can power the business towards significantly higher and more diversified annual revenues. These include 8 Years of Website development (investment of $180K) with full integration into CRM and email automations, a rich and high traffic generating website, an extensive library of 250+ blog posts, backlinks, referring domains etc, monthly newsletter with an active base of 10K subscribers (with typical open rates of 40% - 50%) and many others.
The current owner has implemented customised Software Systems and/or Processes & Procedures to cover all operating requirements, including for Job Management, Customer Reviews & Reputation Management and Reception & Call Centre Systems
Reason For Sale
The owner has committed a great deal of time, energy and resources into the development of this business. They now wish to focus on other projects.
Next Steps
The business is now for sale by Expression of Interest with offers due 4pm Wednesday 16th October.
Further detailed information can be provided to qualified parties. Please contact Michael Kerr.
