Niche Seed Business

Building a vertically integrated gardening business by acquiring key parts of the supply chain, particularly a seed company. This strategy allows for better control over product quality, higher margins, and the ability to leverage existing distribution networks.

Key points:

• Started with a gardening blog and YouTube channel.
• Transitioned into selling gardening products.
• Acquired a seed company (Botanical Interests) to control a crucial part of the supply chain.
• Leveraged existing wholesale distribution network of the seed company.

Benefits of the Acquisition:

• Access to 600-650 varieties of vegetable, flower, and herb seeds.
• Established brand with high reputation in the gardening community.
• Existing relationships with 4,500-5,000 retail stores.
• Opportunity to introduce new products into established distribution channels.

Strategy for Growth:

• Improve online sales of seeds (increased 60-70% in the first year after acquisition).
• Introduce new gardening products to existing retail partners.
• Leverage media presence (YouTube, blog) to promote products.
• Continue to acquire complementary businesses in the gardening niche.

Outcome:

• Grew from $450/month in 2016 to projected $40-45 million in revenue for the current year.
• Team expanded from 5 people to about 90.
• Potential to exceed $100 million in revenue within 5 years.