History and Overview Of The Business
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| Fully describe the business's activities |
Showcasing Advertisers' products and services to hotel guests/tourists in more than 200 hotels/tourist outlets in Gauteng, Western Cape and KZN. This involves the regular replenishing of credit card sized mini brochures and providing some advertisers with reports of card take-up, so they can measure response. |
| When was the business established? |
Initially established in 1993 |
| How long has the owner had the business? |
Since 2013 |
How Does The Business Operate
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| How does the business operate on a daily basis |
Agents in each area visit 20 - 25 venues each week and replenish cards, recording how many have been taken. Seller responds on a daily basis to emails and phone calls from new or existing advertisers. |
| How are the clients attracted to the business? |
Either via the website or from the display cases prominently displayed with company name in all the hotels and venues serviced. Agents also bring in new advertisers for which they receive a commission. |
| What Advertising/Marketing is carried out? |
Website and targeted marketing by agents and seller to specific clients for whom we think this service would be beneficial. Numbers are restricted for the same category of service, so there are not more than three service providers for one type of business |
| Does the business have any contract work? |
No |
| What competition exists? |
Nobody providing this specific service |
| Seasonal Trends? |
Normal tourist and school holiday peak periods, make demand for replenishment greater, but it does not significantly affect sales. |
Financial Information
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| Vat Registered? |
No |
| Vat Documentation on File? |
Not registered |
| Management Accounts? |
Yes |
| Audited Financials? |
No |
| What as Cash/Credit Split? |
Terms are normally 30 days from invoice, but some clients pay up-front for 12 months |
| Debtors Book Age Analisys |
Mostly 30 days. A few in 90 days but they always pay (e.g. major corporate clients). |
| How can you improve the profitability? |
Expand the client base now that tourism is once again improving. Buyer could choose to service a geographical location themselves and thus reduce agent replenishment costs. |
| 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? |
No staff, only agents paid as contract workers. |
| Staff Breakdown |
Western Cape agents responsible for new sales and contract renewals and overseas person responsible for replenishing of cards at hotels. Has been with the company for 10 years. KZN agent only replenishes cards at weekends and is otherwise employed. Gauteng agent folds cards and replenishes cards at hotels. |
| Staff Special Perks and Bonuses? |
No |
| Are the staff on Contract? |
Yes |
| Does any of the staff have management potential? |
W.Cape agent but he also has full time job |
| How involved is the Owner in running the business? |
Daily time just to answer emails and phone calls. Two days at month end for invoicing and admin duties. In total, maybe five days a month. |
Premises Of the Business
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| When Does the Current Lease ends? |
Currently working from home. Space required to store cards for replenishment. Currently using part of garage. |
| What are the Trading Hours? |
Flexible during normal business hours |
| What is the square meters? |
Requires spare bedroom, garage or office space to store cards and extra display cases. |
| Do You require a license? |
No |
Assets Of The Business
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| Full Asset List available? |
Wooden display cases located in over 200 locations, plus a number of extra used units in need of refurbishment before re-using. |
| Anything not included in the sale? |
No |
| What is condition of the assets |
Good |
| Any Assets on Lease/HP that Buyer needs to take over? |
None |
| Are they insured at the moment? |
No |
SWOT Of The Business
|
| STRENGHTS |
Work from home. Excellent reputation build up over nearly 20 years with hotels and tourist destinations, advertisers and repeat clients. Regular interaction with hotels by agents replenishing cards, ensures goodwill. |
| WEAKNESSES |
Printed matter may be seen as not Eco friendly, but when tourists are looking for something to do, a small card which fits into the wallet, is better than a folding brochure which will soon be discarded. |
| OPPORTUNITIES |
Tourism is once again increasing with the weaker rand and the the relaxation of the strict tourist visa requirements. Further marketing in the Gauteng area to increase sales and expansion in to other areas. |
| THREATS |
Any threat to tourism can affect the business, but as tourism is seen as a prime growth area, this is unlikely. Complacency and neglecting to control agent performance in relation to replenishment of cards, could diminish the effectiveness of the platform and result in loss of advertisers. |
Summary
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| Why is this a good business |
Well established, easy to operate from home, with flexible hours. Good return on investment and good client base. Most of the routine work is subcontracted out but could be carried out personally in one province, if buyer is located in the right area. |
| Why is the owner selling it? |
Retirement looms and the desire to travel the country before settling in the Cape to be near family. |