This company is an importer and distributor of safety and decorative flags for recreational vehicles of all kinds. Approximately 75% of sales are handled via the internet while the remainder come through a variety of retailers. The process is well established with minimal daily owner involvement.
The company is largely run "from home", however they lease a 1,920 sq ft warehouse to house inventory and from which they fulfill orders.
Future growth is most likely to come from several sources: 1) Growth of the market overall as addressed within the industry segment. 2) Sales growth will stem partially from the shift in consumer behavior away from strictly “safety flags” towards customized flags in terms of lighting, art work and becoming more of a real vehicle accessory rather than just a safety requirement. 3) Increased market penetration through continued increases and segmentation of the market and segment targeting for advertising purposes. 4) Further innovation as to the products offered making them more customized, unique and exciting to the consumers always looking for a way to “trick out” their vehicles.
The recreational vehicle market is growing very rapidly due largely to two factors: 1) Baby boomers are reaching retirement age in record numbers and are in a position to afford the recreational vehicles that make up the primary market for this company’s product. 2) The younger generations are having fewer children and at a later age allowing them more disposable income and time to “play”; thus fueling the market for recreational vehicles of all types. This company caters to a particular segment of this overall market; ATVs, snowmobiles, bikes of all kinds, some watercraft, etc. It is estimated that the overall market will grow at a rate of 5% annually over the next 5 years. There are other firms offering similar products. The subject company has invested substantially in inventory allowing for faster delivery of the product to customers. A recent decision to substantially increase advertising in selected channels has returned greatly increased sales from a variety of clientele. Due to the relationships with overseas suppliers and the ability to order in large quantities, the current company maintains and will likely always retain a cost advantage over other, smaller competitors.
Other business interests.
Will train for 8 weeks @ $0 cost. This company has a large product line of flags for recreational vehicles; both for safety purposes as well as decorative purposes. They are one of the largest LED flag companies selling a wide variety of "light up poles" for UTV, ATV and off-road markets. The flags are manufactured to order in China and shipped to the United States market. They also sell a variety of ancillary parts for the display of such flags for the various vehicles they cover. There are no licenses required to operate this business other than basic city business licenses. A basic business sense in general and some understanding of or ability to relate to the customers would be beneficial in introducing new products going forward. The overseas relationships and the processes are already in place and can be taken over by a new owner.