Summary

This business is located in a lovely seaside village appoximately one hour from Cape Town on the Whale Coast Route.The property is also for sale for R2,150,000, current rent income R12700 pm.

1. History Background

Fully describe the business's activities?

The business operates as a cafe and mini supermarket,catering for all the necessaries for locals,holiday makers and day visitors.The nearest family supermarket is +- 35 km away.

How long has the business been established?

The business has been established for 11 years.

How long has the owner had the business?

The current owner established the business.

2. Present Market

How does the business operate on a daily basis?

The business sells newspapers,magazines,basic groceries,cold drinks,water,gas,wood,bread,sigarrettes ,ice cream,ice, pies and sweets etc.The owners wife bake homemade bread which are very popular with locals and holiday makers.

How are the clients attracted to the business?

The premises is very visible when entering the village and the sign writing on the roof can not be missed by new visitors.

What Advertising/Marketing is carried out?

No advertising is done at the moment.

Does the business have any contract work?

N/A

What competition exists?

There are another cafe and deli in the village.

What are the seasonal trends?

The turnovers do peak during the holiday season,school holidays and during long weekends.

3. Financial

Is the business VAT Registered?

Yes the business is VAT Registered.

What VAT documentation is on file?

All VAT returns are up-to-date and available.

Are there up-to-date Management Accounts available?

Yes up-to-date Management Accounts are available.

What Balance Sheet and Income Statements are available?

Financial Statements for 28 February2011 is available.

What percentage of the business is cash/credit?

100% Cash business.

What is the age analysis of the debtors book?

N/A

How could the profitability of the business be improved?

The profitability can be improved by selling Lotto tickets,electricity,cell phone airtime, more homemade products,take aways and offer home delivery of groceries.

Is Seller finance available and for what amount?

No Seller finance is available.

What is the payback period?

37 Months.

What is the ROI?

Return ON Investment 33%.

4. Staffing

What is the total staff complement?

The owner and his wife manage the business on there own but do make use of casual workers during the peak season.

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

N/A

Do any receive special perks or incentives?

N/A

Are they on contract?

N/A

Do any have management potential?

N/A

How involved is the Owner in running the business?

The owner and his wife are full time involved.

5. Premises

When does the current lease end?

The owner of the shop is also the owner of the property,the rent for the shop is R7500 pm.The property is for sale for R2,150,000.The double volume building(375sqm) also houses 2 other shops(bookshop & wine blending and tasting)Rent R2620 each pm.The 50sqm room on top of the shop can easily be used as a flat as there is a kitchen,toilets and shower in the shop.

Is there an option of renewal & what period?

5 year lease is available.

What is the annual escalation %?

To be negotiated with owner.

What are the trading hours?

Monday-Sunday 07H00-18H00. During the peak season the shop sometimes do close later.

What is the square meters of the business?

225 sqm including room on top of shop.

Is a copy of the lease available?

N/A

Do you require a licence?

No special licence is required.

What lease deposit and/or other surety is required?

One months rent.

6. Assets

Is a full asset list on file?

Yes full asset list is on file.

Are any items not included in the sale?

All assets are included in the sale.

What is their overall condition?

All assets are in a good condition.

Do any require repairing?

No repairing is needed,just normal maintenance.

How have they been valued ?

Assets are valued by owner.

Which assets are on lease/HP and with whom?

N/A

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?

All assets are insured.

7. S.W.O.T. Analysis

Strengths?

This well-known business is established for 11 years and very visible for new visitors and is known for good service and fresh products.

Weaknesses?

No obvious weaknesses are known.

Opportunities?

To increase sales during the winter months by attracting more customers with Lotto sales,prepaid electricity sales and cell phone airtime sales.To establish a good take away service.

Threats?

No obvious threats are known.

8. Reason For Sale

What is the reason for the sale?

The owner is retiring.

9. Conclusion

Why is this a good business?

This business is ideal for people who seek a lifestyle change in a lovely seaside village.

What is the price plus stock and the net profit?

Price including stock R450,000(stock+-R140,000) Monthly net Profit R12,200 Property R2,150,000