History and Overview Of The Business
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| Fully describe the business's activities |
Group of biltong stores based in major Gauteng shopping Malls. These stores have staff, systems and procedures in place.
The group is made up of two stores and one kiosk and all the stores are profitable contributors to the groups income.
It’s the seller’s focus on quality and service which draws the customers and he does not compete with price |
| When was the business established? |
The initial stores are over six and half years old, the current owner acquired them around one and a half years ago. |
| How long has the owner had the business? |
The current owner bought them April 2015 |
How Does The Business Operate
|
| How does the business operate on a daily basis |
The owner runs the stores hands on and spends 100% of his time looking after the business. |
| How are the clients attracted to the business? |
This is all word of mouth and passing trade. Again the focus on quality and service is what brings the clients back again. |
| What Advertising/Marketing is carried out? |
In Mall and Pamphlets and vouchers and loyalty programs
Signs in Mall, web site an don Google Maps |
| Does the business have any contract work? |
No |
| What competition exists? |
The normal competition in the malls |
| Seasonal Trends? |
Being retail the business peaks in December other than the normal slow start in January and February shows a nice consistency throughout the year. |
Financial Information
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| Vat Registered? |
Yes |
| Vat Documentation on File? |
All vat returns are available |
| Management Accounts? |
Yes |
| Audited Financials? |
Yes to April 2016 |
| What as Cash/Credit Split? |
±55% Cash and ±45% Credit Card |
| Debtors Book Age Analisys |
None |
| How can you improve the profitability? |
More advertising and marketing as well as potentially expanding the product lines. |
| 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? |
Five Staff Members |
| Staff Breakdown |
3 x Staff
2 x Temps |
| Staff Special Perks and Bonuses? |
Commission based |
| Are the staff on Contract? |
No |
| Does any of the staff have management potential? |
Already in place |
| How involved is the Owner in running the business? |
The owner is 100% involved in his business |
Premises Of the Business
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| When Does the Current Lease ends? |
Leases will be disclosed to serious buyers, please note however that you will require the follow approximate deposits ±R180,000 cash or bank guarantee – negotiable with the landlords |
| Is there an option to renew? |
Yes, negotiated lease renewal terms with the landlord |
| What is the annual escalation % |
Currently 9% |
| What are the Trading Hours? |
Mall hours per mall |
| What is the square meters? |
Between 12m² and 25m² |
| Is a copy of the lease available? |
Yes with the seller |
| Do You require a license? |
Normal Health and trading certificates required by the landlords / departments |
Assets Of The Business
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| Full Asset List available? |
Yes, owner will provide |
| Anything not included in the sale? |
1. Consignment stock - Negotiable with suppliers to take over
2. POS – Negotiable with suppliers to take over
3. One Ola ice cream fridge – Negotiable with suppliers to take over |
| What is condition of the assets |
Very good |
| Any Assets on Lease/HP that Buyer needs to take over? |
No |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
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| STRENGHTS |
Great positions in the malls.
Well trained staff in place
Good product range with excellent quality
Systems and procedures
Returning customer base |
| WEAKNESSES |
Time required from the owner |
| OPPORTUNITIES |
Expand with more stores
Additional product lines and services
The normal marketing and advertising
Give permanent staff more management opportunities |
| THREATS |
None identified |
Summary
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| Why is this a good business |
The owner is involved in new business venture and the distance from where he lives is becoming too much. |
| Why is the owner selling it? |
The owner is involved in new business venture and does not have the time with the existing business. |