MANDATE REPORT

1. History Background

Fully describe the business's activities

 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.

How long has the business been established?

This business is in operation for the past 28 years.

How long has the owner had the business?

For the last 4 years.

What steps are in place to solve "load shedding" problems

They have no load shedding problems.

2. Present Market

How does the business operate on  a daily basis

The owner are on site every day for 6 days a week and only during business hours.

How are the clients attracted to the business

Word of mouth, great location in a busy road and the well known brand name attract their clients.

What Advertising/Marketing is carried out

No marketing is done. Business only market by word of mouth.

Does the business have any contract work

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.

What competition exists

There is competition in the area, but the location of the business and its known brand give this store a competitive advantage.

What are the seasonal trends

Winter months are their peak times.

3. Financial

Is the business VAT Registered

No. Under min turn over as required by law

What VAT documentation is on file?

N/A.

Are there up to date management accounts?

Yes, Financials up to 2013/02/28.

What audited financials are available, income statement and or balance sheets?

Yes. Financials ending28 Feb 2013 is on file.

What percentage of the business is cash/credit?

Only cash.

What is the age analysis of the debtor’s book?

A cash business. No debtors book

How could the profitability of the business be improved?

With a new marketing plan and more pamphlet distribution the business will improve.

Is Seller finance available and for what amount?

No.

4. Staffing

What is the total staff complement?

Total Permanent staff= 4

Staff Breakdown and length of service

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.

Do any receive special perks, bonuses or incentives?

No. Only yearly bonuses

Are they on contract?

All staff are contracted

Do any have management potential?

No

How involved  is the Owner in running the business

The owner is there 5 to 6 days a week.

5. Premises

When does the current lease end?

There is a lease in place until May 2014.

Is there an option of renewal & what period

Yes.

What is the annual escalation %?

10 % per year

What are the trading hours?

Mondays to Fridays from 7h00 to 18h00,

Saturdays from 9h00 to 13h00,

Sundays 9h00 to 13h00

What is the square meter age of the business?

51 m²

Is a copy of the lease available?

Yes on request

Do you require a licence?

Only a trading licence

6. Assets

Is a full asset list on file?

Yes.

Are any items not included in the sale?

Yes all assets are included in sale. (Also a vehicle Toyota Avanza)

What is their overall condition?

Good condition

Do any require repairing?

No

How have they been valued?

Replacement value, valued by the Bookkeeper

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

None to be settled

Will Seller settle or Buyer to take over?

All are settled

Are copies of agreements available?

n/a

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths

This Dry cleaner offers the owner a very good location and a good working client base as well as a well-known brand.

Weaknesses

Not enough marketing.  With a good local store marketing plan, this store will show growth

Opportunities

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.

Threats

None perceived

8. Reason For Sale

What is the reason for the sale?

The owner wants to retire and look for other business opportunities.

9. Conclusion

Why is this good business to buy?

Well known brand, good staff, well positioned. It offers the owner a good recurring income in a fast growing industries