Summary

This is a Retail business on the KZN South Coast, catering for the adventurous, selling equipment for Fishing, Camping, Diving and Boating.

1. History Background

Fully describe the business's activities?

This is a Retail business selling equipment for Fishing, Camping, Diving and Boating. Limited manufacturing of products occurs.

How long has the business been established?

The business has been operating from this premises for more that 6 years.

How long has the owner had the business?

The current owner has had the business for 2 years

2. Present Market

How does the business operate on a daily basis?

This is a Retail business selling equipment for Fishing, Camping, Diving and Boating. Limited manufacturing of products occurs.

How are the clients attracted to the business?

Clients are attracted to this business by the signage, word of mouth, flyers and advertising in fishing media

What Advertising/Marketing is carried out?

The business places adverts in specialized fishing magazines and books

What competition exists?

There is some competition in this seaside town of KZN

What are the seasonal trends?

This business benefits from the season

3. Financial

Is the business VAT Registered?

They are Vat registered

What VAT documentation is on file?

Vat returns are available to serious buyers

Are there up-to-date Management Accounts available?

Financial Statements for February 2011 are on file.

What percentage of the business is cash/credit?

95% of the clients pay cash and very limited credit to loyal customers

How could the profitability of the business be improved?

One option to improve profitability would be to consider staff suitability and diversity

4. Staffing

What is the total staff complement?

There are 3 Staff members

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

2 Shop assistants with alternatively 3 and 1 years service respectively. 1 Repair/Manufacturing member with 5 years service

Do any receive special perks or incentives?

The staff get an annual bonus and overtime as per labour legislation

How involved is the Owner in running the business?

The owner is 80% involved in the business

5. Premises

When does the current lease end?

The current lease expires in April 2013

Is there an option of renewal & what period?

A renewal option is available. The renewal period to be negotiated with the landlord

What is the annual escalation %?

A 10% escalation applies

What are the trading hours?

Monday to Friday, 08h00-15h00, Saturday 08h00-14h00

What is the square meters of the business?

The area is 412 sq m.

Do you require a licence?

No licence is required

6. Assets

Is a full asset list on file?

An asset list is on file

Are they presently insured?

All assets are currently insured.

7. S.W.O.T. Analysis

Strengths?

? Established business ? Perfect position to exploit holidaymakers ? Close to the Beach front ? Turnover has increased year on year ? Premises lends itself to diversification

Weaknesses?

The business is dependant on season

Opportunities?

? Expand locksmith business to a full service ? Expand products and service to attract locals out of season

8. Reason For Sale

What is the reason for the sale?

The owner has ill health

9. Conclusion

Why is this a good business?

This is a good business as the potential is limitless with excellent location