Flipping an E-Commerce Business for Double the Profit
Some people were born with entrepreneurial blood flowing through their veins, and Felipe Vasconcelos is one of them. While just eight years old and living in Brazil, Felipe started his own business, making kites for the other kids in the neighborhood and selling them at a profit.
Fast-forward to the present, and Felipe now has formal business knowledge to add to his real-world experience. He went to business school and, armed with the confidence of a degree, was ready to start a new venture. “I came across Empire Flippers, and I decided that it was the right time to bet on myself.”
It turned out that betting on himself meant building an online business, but should he start from scratch or acquire one that was already established and up and running? That wasn’t the only question Felipe needed to figure out. As a recent college graduate, he also had other avenues available to him. With both an education and some experience under his belt, he had a seemingly endless array of possibilities.
Felipe could have used what he learned in his finance classes to invest in the stock market. Historically, the stock market returns an average of about 10% annually, with some years fatter or leaner than others.
Alternatively, he could have easily secured a high-paying corporate job with a big firm in New York in any number of fields, including business management, finance, marketing, or accounting.
Felipe had other plans. He wanted to work for himself and create something that was his own. He says, “I would not trade being an entrepreneur for corporate life. Not in a million years.”
What Felipe and other business school graduates already knew was that there’s a scarcity of college-accredited programs on how to purchase an asset like a website and grow it to massively profitable levels. The digital landscape changes so frequently that any book-based learning in a university setting is bound to be obsolete by the time someone graduates.
Also, given that this was the first time Felipe was starting a business as an adult, he wanted to make sure that he was making the right move. He determined that the smartest course of action would be to acquire something that fit his skill set, rather than starting from scratch.
All of this is easier said than done. For example, like anyone making an important decision, Felipe naturally wondered if the business he was considering acquiring was legitimate and had a chance of remaining profitable after he took ownership. By having access to our curated marketplace that features only carefully vetted business, as well as a team of expert business analysts who help match buyers and sellers, he was able to find a fit almost immediately.
Before deciding to buy from our marketplace, Felipe did his due diligence and explored other brokers. He ultimately chose to work with us during his acquisition, and he had this to say about the process: “Right away, my experience with them was fantastic. They blew everyone else out of the water.”
Felipe was also pleasantly surprised by how seamless and simple the process was, from start to finish. He explains, “The process was talking to the seller, going through the contract, putting down a deposit, and receiving the business. That’s it.”
The best part of the story was what happened after Felipe acquired the business. “After two years, we more than doubled the valuation,” he says with pride. When he first purchased the company from us in 2016, it was valued at $175,000, but the value nearly doubled to $345,000 in just over two years.
Still, Felipe was at a crossroads. Should he continue to run this immensely profitable business or sell it? Should he pocket the cash, keep running the cash cow, or acquire a new venture?
Ultimately, Felipe decided to sell the business, and the first place he turned to was our marketplace. “I didn’t think of anyone else but Empire Flippers. I knew that they were gonna do right by me.”
Today, Felipe has a lot to be proud of, and he’s grateful that he was able to maximize his opportunities while maintaining his freedom. “Not only do I get to live in New York City, I also get to travel, at any point, whenever I want.” It’s no surprise that many of his excursions bring him back to his first home, Brazil.
So, what’s next for Felipe? With a laugh, he says, “My short-term dream right now is buying another business. That’s what I want to do next.”
What about after that? Felipe’s longer-term plans are to “keep buying and selling businesses. Empire Flippers changed my life.” You can learn more about Felipe’s current venture by visiting two of his current brands: Secret Beauty Club and Atomic Makeup.
Are you ready to see what kinds of returns you can achieve? Get in touch with our team of business analysts for a complimentary consultation.