Fully describe the business's activities?
The business has three clear income streams: 1) Sales of new goods in line with Franchisor required range. 2) Buying and selling of second hand goods. 3) Buying of gold and pawn broking The operator is also permitted to buy contents of homes and also from auctions if they chose to do so.
How long has the business been established?
The business has been established for 17 years.
How long has the owner had the business?
How are the clients attracted to the business?
This business is well established and a destination store in town.
What Advertising/Marketing is carried out?
Regular advertising by Franchisor on a national basis.
What competition exists?
There are other operators in the town, but none with the high profile that this one enjoys.
What are the seasonal trends?
Very strong sales over the summer festive season.
Is the business VAT Registered?
What VAT documentation is on file?
Vat returns are all on record.
Are there up-to-date Management Accounts available?
Yes, up to date records as per point of sale and Franchisor requirement.
What Balance Sheet and Income Statements are available?
All the information is available on the business dashboard which is fully integrated and live with the Franchise Head Office.
What percentage of the business is cash/credit?
Up to 40% Credit Card at an extremely low commission rate. Goods also sold on a lay-by basis.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
There is an opportunity to open a separate shop within town selling second hand lounge suits and furniture as space does not permit in current location.
Is Seller finance available and for what amount?
What is the payback period?
What is the ROI?
Who is the bookkeeper/Accountant?
What is the total staff complement?
There are 9 staff members inclusive of the Owner
Give a breakdown of staff/ functions/ length of service?
Owner: All general Management functions. Manager/Buyer: 7 years experience. Buyers and Sales x 2: 1 x 7 years and 1 x 3 years experience. Sales persons. Cleaner.
Do any receive special perks or incentives?
A commission structure and staff incentive system is in place.
Are they on contract?
Normal conditions of employment.
Do any have management potential?
The staff structure has been very stable and the staff all receive ongoing training. This type of business is best when Owner managed, and this is a requirement of the Franchisor.
How involved is the Owner in running the business?
The Owner handles all the General Management requirements such as staff issues, payroll, cash and banking, reports, admin etc
Give a breakdown of staff/functions/length of service?
Admin Manager....3 years Trained Buyer....3 years Salesman...4 years Cashiers and Cleaner
When does the current lease end?
Is there an option of renewal & what period?
Yes, a further 5 years till 2025.
What is the annual escalation %?
8% negotiable at time of increase.
What are the trading hours?
Monday to Thursday: 09-00 to 5pm. Friday: 09-00 to 5-30pm. Saturday: 09-00 to 1pm. Sundays closed.
What is the square meters of the business?
198 sq meters. An offsite storage facility is also rented on a monthly basis.
Who is the Owner/Landlord?
Geo Parkes 0443822003
Is a copy of the lease available?
Do you require a licence?
Yes, various licenses are held: National Credit Regulator, Second Hand Traders, Sampro, SABC, plus others as required.
What lease deposit and/or other surety is required?
1 Months rental.
What are the main assets of the business?
Stock. Fixtures and Fittings.
Are any items not included in the sale?
Yes, the sale excludes the Toyota Bakkie which the Buyer may take over if they wish to.
What is their overall condition?
Good generally....no replacements required at present.
Do any require repairing?
How have they been valued ?
At replacement value.
Which assets are on lease/HP and with whom?
A contract exists with Steiner to clean / replace two doormats at the entrance
Are they presently insured?
Is a full asset list on file?
Location within the town. Buy second hand goods and licensed to buy and sell gold which is very viable. Pawnbroking a lucrative income stream. Part of a national franchise and the market leader contributes greatly to the success of the business (Now over 200 stores in the group). Staff are very well trained and long serving. 3 Head Office trained Buyers in place. Trades consistently profitably with above organic growth year on year.
Ongoing attention to cash flow since this is the backbone to a successful operation in this type of business.
Buying contents of homes could contribute substantially to turnover. The purchase and resale of second hand goods is lower than the national average and can be further developed. An opportunity to open a second store handling only furniture exists in this town.
No obvious threats exist.
What is the reason for the sale?
The Owners personal conditions have changed recently and he may be looking to relocate. He has managed the business well and shown growth consistently for many years, but now wishes to pursue other interests.
Why is this a good business?
Being part of a National Franchise Group, with clearly defined income streams: Selling new goods; Selling second-hand goods; Pawnbroking as well as Purchase and Sale of Gold. The historic information as well as current are all on the system for the potential Buyer to see, with all supporting documentation and integrated with Head Office. The financials prove the consistent growth and profitability of the business. Further growth opportunities that offer incremental income and profitability are available to an entrepreneurial Buyer of the business.
What is the price plus stock and the net profit?
The price of the business is R3 Mill and stock is in the region of R900K will be included in the price. A joining fee of R60,000 is required by the Franchisor. Current profit is in the region of R459K for previous financial year.
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