Summary

Great opportunity in this price bracket. Great return on investment with even greater potential to increase current turnover with a more involved owner.

1. History Background

Fully describe the business's activities?

Deli selling Sandwiches

How long has the business been established?

+- 17 years

How long has the owner had the business?

1.5 years

2. Present Market

How does the business operate on a daily basis?

Selling Sandwiches to mainly walk-in clientele, catering occasionally

How are the clients attracted to the business?

walk-ins, advertising, word-of-mouth

What Advertising/Marketing is carried out?

Boards, CCID Community & Tourist Magazine

Does the business have any contract work?

No

What competition exists?

Other coffee shops/delis in area

What are the seasonal trends?

Dec & Jan Holiday Time

3. Financial

Is the business VAT Registered?

No

Are there up-to-date Management Accounts available?

Yes

What percentage of the business is cash/credit?

100% Cash

How could the profitability of the business be improved?

Increased marketing, Improve Venue, increase product offering

Is Seller finance available and for what amount?

No

What is the payback period?

30 months

What is the ROI?

40%

4. Staffing

What is the total staff complement?

1 kitchen, 1 front of house

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

Preparing sandwiches, 10-12 years of service

Do any receive special perks or incentives?

No

Are they on contract?

Yes

Do any have management potential?

Possibly

How involved is the Owner in running the business?

Cash up, orders and deliveries

5. Premises

When does the current lease end?

1 May 2013

Is there an option of renewal & what period?

2 years renewal option

What is the annual escalation %?

9%

What are the trading hours?

07:00-16:00

What is the square meters of the business?

+-60m2

Is a copy of the lease available?

Yes

Do you require a licence?

No

What lease deposit and/or other surety is required?

1 month rental

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

No

What is their overall condition?

Fair

Do any require repairing?

No

How have they been valued ?

replacement value of similar aged assets

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?

Long established, Loyal Customer Base, Catering Opportunities, Flexibility

Weaknesses?

Seasonal Trends, Lack of variety of products

Opportunities?

Catering Opportunities, Variation in Menu

Threats?

Similar Businesses in Area

8. Reason For Sale

What is the reason for the sale?

Owner is moving overseas

9. Conclusion

Why is this a good business?

Long Established, good return

What is the price plus stock and the net profit?

R100,000 selling, incl. Stock R39,600 profit