History and Overview Of The Business
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| Fully describe the business's activities |
Sales and rental of wedding dress and wedding accessories plus alteration services.
With the businesses focus and expertise on rentals it is uniquely positioned in this market, something the competition has tried to emulate but not been successful. This also means that the stock is not strictly stock but an asset of the business as it is rented multiple time and its cost is very quickly recovered. In order to cater for the variety of brides fairly large stock inventory is held which may be seen as a negative, there is however no risk as all these items can also be sold and are sold before showing too much wear and tear; therefore there is no wastage or write off.
The business also has various rights to different brands they rent and sell. They are the sole importer for a well-known brand. The second brand, which is also a well-established brand in South Africa, they have regional exclusivity. The third brand is a very well known and sought after international brand with a 50km exclusivity radius.
Coupled with supplier terms and standing contracts, this makes for a very attractive business proposition. |
| When was the business established? |
One year |
| How long has the owner had the business? |
The owner started the business |
How Does The Business Operate
|
| How does the business operate on a daily basis |
Owner is involved on a daily basis in the running of the business |
| How are the clients attracted to the business? |
This is a very well known business, Word of mouth, Facebook (promotions), Google Webpage, Instagram (promotions), Real bride photographs |
| What Advertising/Marketing is carried out? |
Facebook, Instagram and Website |
| What competition exists? |
There are various other competing businesses in this space, however, they cannot compete on the same level against the business. Some of the competitors do not hire dresses and only sell dresses. Other competitors also do not have the same quality product as the business.
The business has consumed the more and more clientele of other bridal businesses each consecutive year and is still attracting more clients from other bridal stores. |
| Seasonal Trends? |
The business caters for the highest demand being rental dresses from the most popular designers which are contracted to the business and as a result are busy for around eight months of the year and on the other four months where it is less busy promotions are run to attract business. |
Financial Information
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| Vat Registered? |
No |
| Management Accounts? |
Yes available |
| Audited Financials? |
All are available |
| What as Cash/Credit Split? |
80% - EFT
20% - Cash |
| Debtors Book Age Analisys |
50% deposit on order
25% within 30 days
25% within 60 Days |
| How can you improve the profitability? |
Open more stores as the time and effort to get everything up to the current high standards has been done and the benefit of this can now be reaped.
Expanding current business premises to accommodate growing clientele numbers with bookings. |
Staffing Of the Business
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| What is the total number of Staff? |
6 Staff Members |
| Staff Breakdown |
1 Permanent
2 Contract - Seamstresses
3 Casuals - Most weekends |
| Staff Special Perks and Bonuses? |
Salary and Commission for the two permanent
Seamstresses are paid per day
Casuals are paid a flat rate per fitting plus 10% |
| Are the staff on Contract? |
The permanent staff – yes
Seamstresses contracted out to business-work for themselves on-premises. Always on hand. |
| Does any of the staff have management potential? |
Yes |
| How involved is the Owner in running the business? |
Owner is 100% involved in the running of the business |
Premises Of the Business
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| When Does the Current Lease ends? |
28 February 2023 |
| Is there an option to renew? |
Yes for two years |
| What is the annual escalation % |
±8% |
| What are the Trading Hours? |
08:30-17:00 Monday to Friday
08:30-15:00 Saturday
09:00-13:00 Sunday on request |
| What is the square meters? |
±195m² |
| Is a copy of the lease available? |
Yes |
| Do You require a license? |
No, non alcoholic champagne is served during fittings |
Assets Of The Business
|
| Full Asset List available? |
Stock - Dresses for Rentals (Are actually assets of the businesses as they are rented multiple times and finally sold)
Store Equipment
Furniture and fittings |
| Anything not included in the sale? |
All owners Laptops |
| What is condition of the assets |
Good |
| Any Assets on Lease/HP that Buyer needs to take over? |
Water cooling system is from Oasis at R120 per month
Dresses on order - Currently R290,000 on dresses being settled at R35,000 per month |
| Are they insured at the moment? |
For fire and theft |
SWOT Of The Business
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| STRENGHTS |
Well known and established - Going Concern sale
Word of mouth, 60% of clients are from happy bride referrals
Very good Facebook and Instagram reviews
Hire and Purchase options for brides
Cater for almost all budgets
Cater for almost all sizes
Established website, Accounting system, Social media, Daily Operating system in place, Accountant
A very high number of Facebook and Instagram followers
Reliable Suppliers who are also very helpful with guidance and support
Contracts with suppliers with exclusivity in areas
Alterations department
Importer and Exporter Registered - Customs Client number with SARS
All dresses can be available in the showroom if needed.
The business still showed profit during the lockdown stages, which is proof of a good business plan.
Economic of scale to negotiate with suppliers.
Can stock more variety of brands |
| WEAKNESSES |
The competition which is healthy and not seen as a threat
Owners working in the business daily, this can be managed by a manager
Seven days work week as weekends are mostly fully booked |
| OPPORTUNITIES |
Additional branches can be opened
Add more collections
Add bridesmaid and Mother of bride dresses
Expand online sales
Combine efforts (promotions) with hair stylists, jewelry, photographer and make-up artists
Add more accessories for sale & hire: garters, shoes, hair, jewelry, winter jackets or stoles |
| THREATS |
Covid19 -Business hours, increase in Admin and the unpredictable circumstances
Possible competition from existing and new bridal stores |
Summary
|
| Why is this a good business |
Even through lockdowns the business has shown good profits and has adapted to the new circumstances
Showroom was able to go through lockdown without any debt and paid all salaries and suppliers
Profit share was paid out to partners after lockdown and profit is good for the business
There are many opportunities to increase profit
Brides will always want their dream dress
Opportunity to go to Bridal events internationally and locally to buy the newest bridal collections from the suppliers
The business is well known and one of the supplier's flagship stores in Gauteng
The business is also the only importer of a specific European dress in Southern Africa without any middleman |
| Why is the owner selling it? |
Due to relocation and some to retire and others have small children and cannot be in the business full time going forward. |