History and Overview Of The Business
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| Fully describe the business's activities |
Retailer of School Clothing and sole supplier of sport uniforms to the school. The business operates one hour in the mornings and two hours in the afternoons and one Saturday a month, the current owner is there in the mornings and the staff member in the afternoons, however if you have the time you could dispense with the staff member and retain the cost of R100 per hour, two hours per day for yourself.
This is a fantastic opportunity to acquire a nice low risk business as there is a contract in place with the school that should the uniform change the business has six months to sell old stock and any stock left at the end of the period will be bought by the school at cost. A similar agreement is in place should the school terminate the agreement that they will buy the stock from the business at cost!
Please note that the seller is registered for VAT and if the Purchaser of this business is not VAT registered and does not wish to voluntarily register for VAT then VAT will have to be charged on the purchase price! |
| When was the business established? |
Since 2012 |
| How long has the owner had the business? |
The owner started the business |
How Does The Business Operate
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| How does the business operate on a daily basis |
The business is staff run with owner oversight |
| How are the clients attracted to the business? |
The shop is on the school premises |
| What Advertising/Marketing is carried out? |
Placement of an advert in the school diary
In October and November a 15% discount is offered to new scholars (i.e. grade 8) |
| Does the business have any contract work? |
No, but the shop has a contract with the school to operate on the premises as well as being the sole supplier of sports uniforms |
| What competition exists? |
On the school uniform side there are various competitors such as Pep, Ackermans, Woolworths, etc. especially for the normal Grey and White boys clothes. |
| Seasonal Trends? |
Depending on the season it will be Summer Uniforms and Sports clothing or Winter Uniforms and Sports Clothing |
Financial Information
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| Vat Registered? |
Yes, as part of a group but the only this shop is available as part of the offer. |
| Vat Documentation on File? |
Is part of the group and incorporated in the group. |
| Management Accounts? |
Yes specifically for this business |
| Audited Financials? |
Incorporated into the larger group |
| What as Cash/Credit Split? |
Only sell on credit to the school (coaches) |
| Debtors Book Age Analisys |
N/A |
| How can you improve the profitability? |
Additional hours, adding additional services such as embroidery and selling of 2nd hand clothing, etc. |
| Is Seller Finance available and if so what is it? |
No |
Staffing Of the Business
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| What is the total number of Staff? |
One staff member |
| Staff Breakdown |
Started Aug 2017, on contract and paid hourly, cashier and shop assistant |
| Staff Special Perks and Bonuses? |
No |
| Are the staff on Contract? |
Yes, hourly paid for hours worked only |
| How involved is the Owner in running the business? |
Overview only |
Premises Of the Business
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| When Does the Current Lease ends? |
No lease |
| Is there an option to renew? |
Contract with the school in place |
| What are the Trading Hours? |
07:00 to 08:00 and 14:00 to 16:00 Monday to Friday
One Saturday a month |
Assets Of The Business
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| Full Asset List available? |
Full asset list is on file |
| Anything not included in the sale? |
Yes, only as per the asset list |
| What is condition of the assets |
Fine as mostly consists of shelving, ongoing repairs and maintenance performed as required |
| Any Assets on Lease/HP that Buyer needs to take over? |
None |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
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| STRENGHTS |
Shop is based on the school premises and has a captive market
Only three hours per day
Closed during the school holidays |
| WEAKNESSES |
Closed during the school holidays |
| OPPORTUNITIES |
Additional services and products can be offered, e.g embroidery which is currently outsourced |
| THREATS |
None identified |
Summary
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| Why is this a good business |
Are the sole supplier of the schools sports uniforms and would ideally suit a parent as they would then also have the school holidays off when the children are on holiday. |
| Why is the owner selling it? |
Seller wishes to concentrate on a private school they are also currently servicing |