History and Overview Of The Business
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Fully describe the business's activities |
The business operates as a Laundry/Laundrette of many years standing . Drop-Off and Self-Service + Dry Cleaning. |
When was the business established? |
The business was established in 1990 and has therefore been operating in the area for 30 years. |
How long has the owner had the business? |
The current owner has owned the business since 2005 - 15 years. |
How Does The Business Operate
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How does the business operate on a daily basis |
The security guard of the building opens at 7.00 am. 3 x Staff arrive at 7.30 am. Owner comes in at about 8.00 am. Owner oversees during the day but need not be there full time. |
How are the clients attracted to the business? |
A number of the clients are long-standing customers so word-of-mouth plays a part and also because the business has been in the area for 30 years it is well-known. |
What Advertising/Marketing is carried out? |
None. This is an area that can make an immediate impact to both top- and bottom-line. There are nice residential areas on either side of the business, there are also numerous restaurants and fast-food places as well as guest houses in the area which can all be lobbied for business. |
Does the business have any contract work? |
Although not formal contracts, they have some guest houses, hairdressers, beauty parlours and nail bars who use their services every daily/weekly and are billed monthly. |
What competition exists? |
There are two other laundries but they are about 5 kms away and do not affect this business. |
Seasonal Trends? |
December and January is busier and school holidays in general are also busy but generally spread nicely over the year |
Financial Information
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Vat Registered? |
No |
Management Accounts? |
Yes, there are management accounts to February 2020. |
Audited Financials? |
These are available to February 2019. |
What as Cash/Credit Split? |
80% of the business is cash and about 20% is EFT. |
Debtors Book Age Analysis |
There is one 30-day account. All the rest are at current on the debtors list. |
How can you improve the profitability? |
More contract work from Guest Houses, Hairdressers, Beauty Parlours and Nail Bars etc in the area. A tailor/garment alterations, shoe repair service and a key bar/key cutting service will all add to the attraction of people to the store. |
Staffing Of the Business
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What is the total number of Staff? |
There 3 x members of staff plus the owner. |
Staff Breakdown |
Each staff member has their own customers and they service those clients. All 3 do washing and ironing. Average of about 10 years service by staff members. |
Are the staff on Contract? |
Yes, they have letters of appointment. |
How involved is the Owner in running the business? |
Owner comes in everyday but the business and staff operates on its own. |
Premises Of the Business
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When Does the Current Lease ends? |
Month-to-month lease currently but landlords are happy to negotiate a new lease with new owners. |
Is there an option to renew? |
To be negotiated with the landlord but normally 3 to 5 years. |
What is the annual escalation % |
10% |
What are the Trading Hours? |
Mon - Fri: 7.30 am (Self-service 7.00 am) to 5.30 pm (Self-service to 8.30 pm) - Security guard of building locks up. |
What is the square meters? |
Approximately 300 square meters. |
Do You require a license? |
No licence is required to run this business. |
Assets Of The Business
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Full Asset List available? |
10 x Washing Machines, 3 x Big Dryers, 2 x Small Dryers, Irons, Ironing Boards, Office Desk and Chairs, Shelving and Racking. |
What is condition of the assets |
10 x Washing Machines and the Dryers are in good order. Serviced regularly and as needed. |
Any Assets on Lease/HP that Buyer needs to take over? |
No assets are on lease or HP. |
Are they insured at the moment? |
Yes, business and assets are insured. |
SWOT Of The Business
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STRENGTHS |
History of 30 years in the area, well known, knowledgeable staff. Known for exellent service. Long-standing customers. |
WEAKNESSES |
Lack of marketing. This would make an immediate difference to the business at very little cost initially. |
OPPORTUNITIES |
Bringing in a tailor/alterations person, shoe repairs section, key bar and key cutting service. Drop-off and collection to clients as an added-value service will attract more business. |
THREATS |
None really. |
Summary
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Why is this a good business |
This business need not take up every hour of your day - you can run this business whilst running other businesses. Has a good reputation for service. Has excellent growth potential with some decent marketing and addition of tailor/alterations service, shoe repairs and key bar and key-cutting service. Offering more guest houses, restaurants, fast food places and beauty parlours and nail bars their services will see quick increases to top- and bottom-line. |
Why is the owner selling it? |
The owner wishes to retire. |