Summary

Cell phone repair and accessories store, with potential to increase sales by adding cell phone contracts, cell phones sales new and secondhand.Only one staff and owner with huge turnover. Excellent opportunity for individual seeking a hassle free operation.Training would be provided.

1. History Background

Fully describe the business's activities?

This is a repair and cell phone accessories store

How long has the business been established?

Two and half years

How long has the owner had the business?

From inception

2. Present Market

How does the business operate on a daily basis?

Contract with dealers (stores and other company work)

How are the clients attracted to the business?

Quality workmanship even with the most difficult jobs

What Advertising/Marketing is carried out?

Flyers and website

Does the business have any contract work?

What competition exists?

None in the vicinity that is an added advantage.

What are the seasonal trends?

December and January busier

3. Financial

Is the business VAT Registered?

Yes up to date

What VAT documentation is on file?

Current

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

28 February 2011

What percentage of the business is cash/credit?

C.O.D

What is the age analysis of the debtors book?

N/A

How could the profitability of the business be improved?

P.O.S items,Sale of contracts,New and used phones

Is Seller finance available and for what amount?

up to 25%

What is the payback period?

What is the ROI?

4. Staffing

What is the total staff complement?

2

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

Quality control lady and the owner

Do any receive special perks or incentives?

N/A

Are they on contract?

No,fulltime

Do any have management potential?

Yes

How involved is the Owner in running the business?

100%

5. Premises

When does the current lease end?

2013 May

Is there an option of renewal & what period?

Yes for 2 years

What is the annual escalation %?

12%

What are the trading hours?

8:00am to 4:40pm Sat 8:30am to 1:00pm

What is the square meters of the business?

25 sqm

Is a copy of the lease available?

Yes

Do you require a licence?

NO

What lease deposit and/or other surety is required?

6. Assets

Is a full asset list on file?

To successful applicants

Are any items not included in the sale?

NO

What is their overall condition?

Good

Do any require repairing?

No

How have they been valued ?

Yes

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?

48 hour turn around time Quality workmanship.

Weaknesses?

Owner spends whole in business.

Opportunities?

Cell phones sales/second hand sales/contracts phones/Starter packs

Threats?

Theft of phones

8. Reason For Sale

What is the reason for the sale?

Owner has other interest, he is into music and currently running a Recording studio.

9. Conclusion

Why is this a good business?

Low overheads. only one staff to manage. Good industry because of many cell phones people use, there will always be repairs done.

What is the price plus stock and the net profit?

R300 000