Summary

This is a high traffic bar-cum-cafe that serves light meals during the day and in the evenings and enjoys a strong following from the young and up coming working class. On weekends and during holidays the business is a hive of activity. The business makes US$5,000.00 every month (high in the festive period) and is correctly priced. No franchise fees.

1. History Background

Fully describe the business's activities

The cafe-cum-bar is situation in the heart of Bulawayo CBD and attracts a young vibrant clientele. Patrons can enjoy light meals as well as non-alcoholic and alcoholic beverages.

How long has the business been established

The owner started the business 4 years ago

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

There is a generator in place

What is the average KW usage

12Kva is more than adequate

2. Present Market

How does the business operate on a daily basis

Word of mouth

How are the clients attracted to the business

The bar-cum-cafe is very visible and attracts people driving along the road.

What Advertising/Marketing is carried out

No advertising

What competition exists

Other bars in the CBD but there are very few bars that are in this niche. The Watering Hole is a perhaps the nearest competition but does not offer meals.

What are the seasonal trends

Holidays and month ends are peak periods

3. Financial

Is the business VAT Registered

The business is Vat registered.

What VAT documentation is on file.

Documentation is on file

Are there up-to-date Management Accounts available

Management Accounts are available

What Balance Sheet and Income Statements are available

As at 31 December 2009

What percentage of of the business is cash/credit

100% cash

How could the profitability of the business be improved

Advertising specials in the press

What is the payback period

24 months

What is the ROI

50%

4. Staffing

What is the total staff complement

There are 7 staff members

Give a breakdown of staff/functions/length of service

Most of them have been with the business for 4 years

Do any receive special perks or incentives

No staff receives perks or incentives

Are they on contract

They are on contract

Do any have management potential

Yes

How involved is the Owner in running the business

The owner runs the business

5. Premises

When does the current lease end

The lease is currently on a monthly basis as other tenants are disputing rentals

What is the annual escalation %

10%

What are the trading hours

11am to 11.30pm

What is the square meterage of the business

100 square metres

Is a copy of the lease available

A copy is available

Do you require a licence

Yes. A liquor licence.

6. Assets

Is a full asset list on file

An asset list is on file

Are any items not included in the sale

No items are excluded

What is their overall condition

Good

Do any require repairing

No assets require repairs

How have they been valued.

Owner's valuation

Are they presently insured

The assets are insured

7. S.W.O.T. Analysis

Strengths

(1) Well known name in Bulawayo (2) Visible location (3) Profitable

Weaknesses

(1) No heavy advertising and no live music

Opportunities

(1) Advertising and live music and guest appearances

Threats

The Watering Hole is an informal establishment that comes alive after hours

8. Reason For Sale

What is the reason for the sale

The seller has other business and wants to focus on running them

9. Conclusion

Why is this a good business

It is profitable

What is the price plus stock and the net profit

US$120,000.00 (price + stock) US$5,000.00 (net profit)