Summary

URGENT SALE!! This butchery with good growth potential is situated in the Centurion area. It is a cash business with good staff that has management potential. Lots of regular clients, supply various restaurants, Wimpy and Mug & Bean.

1. History Background

Fully describe the business's activities?

The business operates as a butchery selling directly to the public. The business also have a large amount of regular customers and supply various restaurants, Wimpy and Mug & Bean.

How long has the business been established?

The business has been established as a butchery for 13 years.

How long has the owner had the business?

The owner took over the business in June 2011.

2. Present Market

How does the business operate on a daily basis?

The owner only opens and closes the business and his staff runs it for the rest of the day. All kinds of meat products, cheese and snacks are sold to the public.

How are the clients attracted to the business?

There are big signs advertising the business and then word of mouth also contributes to advertising.

What Advertising/Marketing is carried out?

No other form of advertising is done.

Does the business have any contract work?

No contract work but do have longstanding relationships with various restaurants, Wimpy and Mug & Bean.

What competition exists?

There is a Spar in the center that also sells meat.

What are the seasonal trends?

The owner has not had the business long enough to notice any seasonal trends.

3. Financial

Is the business VAT Registered?

Yes.

What VAT documentation is on file?

All VAT documentation is on file with bookkeeper.

Are there up-to-date Management Accounts available?

Trial balances from July 2011 are available.

What percentage of the business is cash/credit?

Only one client is on a 30day account the rest is all cash. MOST CASH SALES ARE NOT REFLECTED IN THE TURNOVER! PURCHASES FOR OWNER'S OTHER BUSINESS IS ALSO SHOWN IN COS - he can prove this to prospective buyers.

What is the age analysis of the debtors book?

N/A

How could the profitability of the business be improved?

A rep can be employed to approach restaurants. More advertising can be done.

Is Seller finance available and for what amount?

SELLER IS VERY NEGOTIABLE ON THE PRICE BUT WILL HAVE TO BE A CASH OFFER

4. Staffing

What is the total staff complement?

6 Staff members excluding the owner and his daughter who currently acts as cashier.

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

1 x block woman, 1 x cutter, 1 x Biltong maker, 1 x Take care of orders, 2 x Cleaners

Do any receive special perks or incentives?

Only salaries and bonus's per owners discretion.

Are they on contract?

No.

Do any have management potential?

Yes, the block woman.

How involved is the Owner in running the business?

Owner only opens and closes the business and take care of managerial duties.

5. Premises

When does the current lease end?

Currently on a month to month basis.

Is there an option of renewal & what period?

A two or three year lease is negotiable.

What is the annual escalation %?

10%

What are the trading hours?

Monday to Friday 8:00 - 17:30, Saturday and Public Holidays 9:00 - 14:00, no Sundays

What is the square meters of the business?

Approximately 170 sq/m

Is a copy of the lease available?

A new lease will have to be negotiated.

What lease deposit and/or other surety is required?

One months security deposit and one month payment in advance.

6. Assets

Is a full asset list on file?

Owner will draw one up.

Are any items not included in the sale?

Hi-fi, 1x vacuum machine, 1x griller

What is their overall condition?

All assets are in a good and working condition.

Do any require repairing?

None.

How have they been valued ?

Owners valuation

Which assets are on lease/HP and with whom?

None.

Are they presently insured?

No.

7. S.W.O.T. Analysis

Strengths?

The business has steadily grown the last five months. Big developments are planned in the area. Good quality and service.

Weaknesses?

Owner does not have time to spend at the business.

Opportunities?

More advertising can be done and a rep can be employed to promote the products to restaurants and pubs.

Threats?

None were identified by the owner.

8. Reason For Sale

What is the reason for the sale?

The seller does not have the time to run this business.

9. Conclusion

Why is this a good business?

It is a cash business that is easy to manage.

What is the price plus stock and the net profit?

R350 000 including stock of R60 000.