MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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This Dry Cleaning/Laundromat is located on a busy road in Pretoria CBD. It does dry cleaning, steam pressing, washing, drying Ironing and shoe repair for its clients in and around Pretoria CDB. This business has a depot at Bello Ombre train station, (State Theatre, Government departments and Multi Serves) They also has a few well known business clients they drop off and collect laundry. The current client bases are mostly local residents.
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How long has the business been established?
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This business is in operation for the past 28 years.
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How long has the owner had the business?
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For the last 4 years.
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What steps are in place to solve "load shedding" problems
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They have no load shedding problems.
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2. Present Market
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How does the business operate on a daily basis
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The owner are on site every day for 6 days a week and only during business hours.
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How are the clients attracted to the business
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Word of mouth, great location in a busy road and the well known brand name attract their clients.
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What Advertising/Marketing is carried out
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No marketing is done. Business only market by word of mouth.
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Does the business have any contract work
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No but they have some longstanding businesses clients. They also do all the costumes/garments for the State Theatre and on the data base for Government departments e.g. South African Police, Home Affairs and Dept of Education.
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What competition exists
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There is competition in the area, but the location of the business and its known brand give this store a competitive advantage.
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What are the seasonal trends
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Winter months are their peak times.
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3. Financial
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Is the business VAT Registered
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No. Under min turn over as required by law
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What VAT documentation is on file?
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N/A.
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Are there up to date management accounts?
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Yes, Financials up to 2013/02/28.
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What audited financials are available, income statement and or balance sheets?
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Yes. Financials ending28 Feb 2013 is on file.
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What percentage of the business is cash/credit?
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Only cash.
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What is the age analysis of the debtor’s book?
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A cash business. No debtors book
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How could the profitability of the business be improved?
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With a new marketing plan and more pamphlet distribution the business will improve.
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Is Seller finance available and for what amount?
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No.
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4. Staffing
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What is the total staff complement?
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Total Permanent staff= 4
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Staff Breakdown and length of service
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The staffs well trained and offers a wide range client services. The staffs does the following 1x shoe repair man, 1x mending lady, 1x pressing lady and 1 x washer.
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Do any receive special perks, bonuses or incentives?
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No. Only yearly bonuses
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Are they on contract?
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All staff are contracted
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Do any have management potential?
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No
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How involved is the Owner in running the business
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The owner is there 5 to 6 days a week.
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5. Premises
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When does the current lease end?
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There is a lease in place until May 2014.
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Is there an option of renewal & what period
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Yes.
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What is the annual escalation %?
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10 % per year
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What are the trading hours?
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Mondays to Fridays from 7h00 to 18h00,
Saturdays from 9h00 to 13h00,
Sundays 9h00 to 13h00
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What is the square meter age of the business?
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51 m²
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Is a copy of the lease available?
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Yes on request
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Do you require a licence?
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Only a trading licence
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6. Assets
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Is a full asset list on file?
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Yes.
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Are any items not included in the sale?
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Yes all assets are included in sale. (Also a vehicle Toyota Avanza)
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What is their overall condition?
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Good condition
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Do any require repairing?
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No
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How have they been valued?
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Replacement value, valued by the Bookkeeper
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Which assets are on lease/HP and with whom?
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None
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What are their settlement amounts?
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None to be settled
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Will Seller settle or Buyer to take over?
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All are settled
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Are copies of agreements available?
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n/a
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Are they presently insured?
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Yes
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7. S.W.O.T. Analysis
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Strengths
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This Dry cleaner offers the owner a very good location and a good working client base as well as a well-known brand.
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Weaknesses
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Not enough marketing. With a good local store marketing plan, this store will show growth
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Opportunities
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There are a lot of well known businesses in the area. The access road is very busy road. The location is very active because of the supporting shops in and around the site. It offers the clientele a one shopper environment.
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Threats
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None perceived
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8. Reason For Sale
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What is the reason for the sale?
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The owner wants to retire and look for other business opportunities.
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9. Conclusion
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Why is this good business to buy?
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Well known brand, good staff, well positioned. It offers the owner a good recurring income in a fast growing industries
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