History and Overview Of The Business
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| Fully describe the business's activities |
Laundromat and dry cleaning shops with shoe repairs and tailors at each premises. 3 x branches in high-end Northern Suburbs of Johannesburg. |
| When was the business established? |
Branch 1 - Twenty years; Branch 2 - Eight years and Branch 3 - Seven years. |
How Does The Business Operate
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| How does the business operate on a daily basis |
3 x Shop assistants open and close the stores. Staff accept laundry, dry cleaning, tailoring and shoe repairs from customers and issue them with a typical dry cleaning slip which is to be handed in at collection and payment made before goods are released. |
| How are the clients attracted to the business? |
Foot traffic, word of mouth, historical clients who have used them for years. |
| What Advertising/Marketing is carried out? |
Bulk SMS's are occasionally sent to announce specials . e.g. Blankets and coats and jackets in winter, curtains in spring. They have the cell number of every client as these have to be given when checking laundry and dry cleaning in. |
| Does the business have any contract work? |
No but the business is the preferred supplier to a very large banking Head Office in Sandton as well as the largest law firm in Sandton. Other corporate work includes smaller and boutique hotels and guest lodges. |
| What competition exists? |
Other dry cleaners are around but none in the 3 centres that this business operates from. |
| Seasonal Trends? |
December to January is very busy. June, July also busy as the dry cleaning side picks up for the winter coats and jackets etc. |
Financial Information
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| Management Accounts? |
Yes, there are management accounts available. |
| Audited Financials? |
February 2019. |
| What as Cash/Credit Split? |
About 21% of the sales are cash sales. The balance is debit and credit card sales and payment by EFT from the corporate clients. |
| Debtors Book Age Analysis |
Paid by customers by card or cash on collection. On the corporate clients side the major law firm pays 30 days, all the rest pay with 7 days. |
| How can you improve the profitability? |
More depots which add more new business. More contracts will also add to profitability. |
Staffing Of the Business
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| What is the total number of Staff? |
Branch 1: 6 x Staff. Some Laundry and ironing gets done in this branch + tailoring. Branch 2: 6 x Staff + a tailor who rents space - this branch is the main factory of the business and some laundry and all the the dry cleaning and all the shoe repairs gets brought here by the driver in the company delivery vehicle on a daily basis. Branch 3: 2 x Staff. Operates as a depot only with tailor in site. |
| Staff Breakdown |
Branch 1: 1 x Shop Assistant, 3 x Ironers, 1 x Packer, 1 x Tailor. Branch 2: 1 x Shop Assistant, 1 x Ironer, 1 x Dry Cleaner, 1 x Assistant to Dry Cleaner, 1 x person dedicated to corporate work, 1 x Driver, 1 x Tailor who rents space. Branch 3: 1 x Shop Assistant, 1 x Tailor. |
| Are the staff on Contract? |
Yes, the staff have letters of appointment. |
| Does any of the staff have management potential? |
Yes, the one shop assistant has definite potential and can be relied upon. |
| How involved is the Owner in running the business? |
The business runs itself. The owner spends about 30% to 40% of her time at the business. |
Premises Of the Business
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| When Does the Current Lease ends? |
Various dates. The business and it's branches are longstanding clients of the landlords. |
| Is there an option to renew? |
Yes, 5 year renewal. |
| What are the Trading Hours? |
Monday to Friday: 7.00 am to 6.00 pm. Saturday: 8.00 am to 1.00 pm. |
| Is a copy of the lease available? |
Copies of the leases are available. |
Assets Of The Business
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| Full Asset List available? |
Washing machines, dry cleaning machine, tumble dryers, shoe repair machine, key cutting machine , shop fittings, Ford Bantam bakkie. |
| What is condition of the assets |
All well-maintained - good to excellent. |
| Any Assets on Lease/HP that Buyer needs to take over? |
None. Everything is fully paid for. |
SWOT Of The Business
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| STRENGTHS |
Nicely profitable, well-established, all branches have been operating for many years, potential for growth, knowledgable staff, known in the ares in which they operate. The business really runs itself. |
| WEAKNESSES |
Lack of advertising. |
| OPPORTUNITIES |
More depots means more business. More corporate work. Domestic help is also becoming more and more of a luxury making the laundry and ironing services of this business essential to customers in the area. |
| THREATS |
Normal economic conditions but these stores operate in areas where the residents are well-paid and so can afford these services. |
Summary
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| Why is this a good business |
Very good cash flow, profitable, very well-established branches, basically runs itself, growth potential if new depots are added. |
| Why is the owner selling it? |
Owner has invested in a new business - a bakery and coffee shop - and together with being a mom with a young child just needs a bit more time on her hands. |