Summary

The business currently manufactures Queue Management Systems, with LED messaging and illuminated flashing teller indicators at each till, and is either voice or tone activated to indicate the next customer. The system is simple to install as it uses radio frequencies to communicate between till points and a computer and is also available with colour screens. The market is huge with excellent margins. Turnover has increased every year, this business can make the asking price in a year

1. History Background

Fully describe the business's activities

The business currently manufactures Queue Management Systems, with LED messaging and illuminated flashing teller indicators at each till, and is either voice or tone activated to indicate the next customer. The system is simple to install as it uses radio frequencies to communicate between points and a computer

How long has the business been established

3 years

How long has the owner had the business

Since inception

2. Present Market

How does the business operate on a daily basis

The business is basically a one man operation, with some of the components and installation outsourced, he operates from home and tests the systems before installation

How are the clients attracted to the business

Clients have been approached by the seller and orders received and repeat orders in most cases

What Advertising/Marketing is carried out

None

Does the business have any contract work

Regular clients

What competition exists

There are two other competitors in the SA Market

What are the seasonal trends

None

3. Financial

Is the business VAT Registered

Yes

What VAT documentation is on file.

All will be available

What Balance Sheet and Income Statements are available

To Feb 2010

What percentage of of the business is cash/credit

Operates on the basis of 50% deposit and balance prior to shipping

How could the profitability of the business be improved

The clients of this business are numerous and the market huge, as a one man business it is difficult to grow the business beyond where it is, this is an ideal add-on business to a company with infrastructure and a larger and perhaps national footprint in the IT market,

Is Seller finance available and for what amount

No but seller will stay and train staff

4. Staffing

What is the total staff complement

One man business

How involved is the Owner in running the business

Fully involved

5. Premises

When does the current lease end

Run from Home at present

Do you require a licence

No

6. Assets

Is a full asset list on file

Yes

What is their overall condition

Good working order

7. S.W.O.T. Analysis

Strengths

Systems very popular and can be sold into government, chain stores, pharmacies, basically anywhere people congregate

Weaknesses

One man business

Opportunities

The business turned over R540 000 in sales last year netting over R240 000 before drawings and interest. This is the tip of the iceberg with proper marketing and infrastructure this can grow into a very substantial business

Threats

None Known

8. Reason For Sale

What is the reason for the sale

Seller is 74 years old and would prefer moving onto other projects

9. Conclusion

Why is this a good business

Huge untapped markets, can be sold into retail, municipal or government environment - wherever people are waiting to be served

What is the price plus stock and the net profit

Selling at R1 200 000 including equipment and stock, from figures given profits in 2010/2011 should be at least 20-30% higher and with some marketing can really take off