Summary

Take away for sale in business area, with steady customer base and ready to be improved upon.

1. History Background

Fully describe the business's activities?

Fast food take away in retail area in Pretoria.

How long has the business been established?

The business has been established for 12 years.

How long has the owner had the business?

The current owner has been in the business now for 1 year and 3 months

What steps are in place to solve 'load shedding' problems?

None but one of the neighboring shops has a generator available

What is the average KW usage?

N/A

2. Present Market

How does the business operate on a daily basis?

The owner operates the shop himself with the help of his wife and an assistant. They sell over the counter takeaway's and allied products, all freshly produced in store.

How are the clients attracted to the business?

The business has been established for many years and the businesses in the area supports the take away. Word of mouth and old customers keep the sales running. Menus are also handed out to businesses in area.

What Advertising/Marketing is carried out?

No other marketing is done

Does the business have any contract work?

No

What competition exists?

Not any nearby

What are the seasonal trends?

None

3. Financial

Is the business VAT Registered?

No

What VAT documentation is on file?

N/A

Are there up-to-date Management Accounts available?

Yes, Bookkeeper to prepare

What Balance Sheet and Income Statements are available?

Owners books

What percentage of the business is cash/credit?

All cash

What is the age analysis of the debtors book?

N/A

How could the profitability of the business be improved?

By improving sales. Owner and wife does not have the energy to do serious marketing. Just ticking over.

Is Seller finance available and for what amount?

No

What is the payback period?

25 Months

What is the ROI?

49%

4. Staffing

What is the total staff complement?

2 Assistants handling the food preparation, and owner and wife at front desk.

Give a breakdown of staff/functions/length of service?

Staff at back handles food preparation and owner and wife deals with customers.

Do any receive special perks or incentives?

No

Are they on contract?

No

Do any have management potential?

No

How involved is the Owner in running the business?

Owner is 100% involved in running the business.

5. Premises

When does the current lease end?

Current lease ends Feb 2013

Is there an option of renewal & what period?

3 year contract and there is option to renew

What is the annual escalation %?

10%

What are the trading hours?

Mon - Fri 8am to 4.30pm Sat 8.30am to 1.00pm

What is the square meterage of the business?

+- 60 sqm

Is a copy of the lease available?

Yes

Do you require a licence?

Certificate of acceptability for food premises

What lease deposit and/or other surety is required?

2 X Rent

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

Small KIC freezer, small portable TV, russel hobbs microwave on sales counter

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued. ?

Fair Value

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

N/A

Will Seller settle or Buyer to take over?

N/A

Are copies of agreements available?

N/A

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

Trading hours not as long as normal type take away due to trading done mostly to businesses in area. Well known in area and situated next to sanctuary which draws people over weekend.

Weaknesses?

Working hours should be extended slightly, weekends the store should stay open later on Saturday to capitalize on the customers visiting the sanctuary. Advertising and marketing is non existent and needs to be vastly improved upon.

Opportunities?

Turnover can easily be improved by doing the above plus additions is currently underway in extending the number of shops in the area, which will bring even more customers.

Threats?

No real threats

8. Reason For Sale

What is the reason for the sale?

Owner and wife are both over seventy years old and does not have the enthusiasm and energy to improve the business in any way. They just want to retire.

9. Conclusion

Why is this a good business?

This is a good business for someone enthusiastic and younger at heart that want to improve a solid business even more.

What is the price plus stock and the net profit?

The price of the business is R 221,000.00 and the Nett Profit is R 8793.00 pm