18 Year Old Hosting and Web Design Business with 80% Recurring Revenue and 50% Annual Growth
This tech company has been operating for two decades in the web hosting, design, and site building marketplace. With subscription-based revenue over 80% of its gross income, this business has low overheads and is adaptable for immediate scale to continue its current industry growth trend.
OPERATIONS
The hosting business is massively automated with above-average 73% margins and low churn. It offers not just hosting packages, SSL certificates, and domain registrations but also design and consultation services to meet every customer’s need, up to and including complete site design and build-out from the ground up. The company’s clients run the gamut from home users, to enterprise-level, and everything in between.
The business is primarily cloud-based, delivering web services to customers worldwide, with no specific supply and logistics-related activities. The hosting servers are maintained and secured in a remote data center.
MARKETING AND KEY METRICS
This online business almost zero marketing expenditure due to its excellent reputation and large repeat clientele. It has a gamut of website services on offer, including website design, web hosting and SSL certification, attracting large volumes of website users.
This business primarily operates through the online channels, providing web-based services to its customers. Online marketing, website promotion, and referral programs are the primary sales channels for acquiring new customers.
This business has a proven record of profitability of cash flow $192,734 and gross income $238,441. It has a 50% year-over-year growth, resulting in steadily increasing revenue and 22% increase in repeat orders, which is a positive indication in the web-building industry.
The company has a diverse customer base, spanning from home users to enterprise-level clients, providing them with website design, hosting, and a full suite of website services to meet their diverse web-building requirements.
BUSINESS MODEL & RESOURCES NEEDED
This business has only two employees due to its high level of automation, with minimal oversight needed to maintain its recurring revenue stream.
THE INDUSTRY
This business belongs to the tech and internet industry, web hosting, design, and site building marketplaces. Some other similar companies in this industry include Bluehost, SiteGround, and GoDaddy.
OPPORTUNITIES TO SCALE
In the hands of the right tech-savvy entrepreneur, this business would scale rapidly and easily. The opportunities for growth include localizing its infrastructure, expanding its team, and enhancing its referral programs.
Asking Price: $599,000
Gross Income: $238,441
Cash Flow: $192,734
Year Established: 1997
Employees: 2
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