For sale is a 10-year-old Michigan company that specializes in selling proprietary mushroom-growing kits on Amazon. The mushroom kits are highly sought-after by home cooks, restaurants, hobbyists, gardeners and wellness experts who wish to grow, use and eat their own mushrooms.
The business has a decade-long track record of B2B distribution (i.e. selling mushrooms to local restaurants and farmers’ markets), but the company started to transition out of the B2B market to solely focus on Ecommerce and made the full transition in May 2022. In the past ten years, the B2B sales showed considerable growth and could be re-instituted with some capital and time investments. The new owner will have the opportunity to expand on this if they choose as the equipment and customer lists are available.
The business can be kept in Michigan but it’s not restricted to its current location, as mushrooms can be grown in a fairly small indoor space anywhere geographically. They have automated their growing and selling processes with regards to material sourcing and SOPs through years of trial and error, which allows a buyer to come into a turn-key operation even if they have no knowledge of agriculture. Additionally, the business has very strong brand recognition both online and in the Great Lakes region. The facilities utilize a large solar array to offset energy costs and use a hybridized geothermal system that makes it a very green operation. They currently have enough raw materials to create 6000 five-lb. grow bags (which retail at $24.99), which equates to around $150K in retail revenue — included with the sale of the business.
Beside the three owners, there are two W2 employees (one part-time and one full-time). However, the owners believe that it could be run smoothly without any employees and a sole owner/operator, which would add back around $38-$40K a year to the total profits.
There are three owners but their roles and responsibilities could easily be absorbed by one Owner/Operator. A new owner could run the business remotely, as long as they had an employee to oversee the growing of the mushrooms and the shipping of the packages.