Fully describe the business's activities?
The business is a long established and internationally recognized crafter of handmade fashion accessories made from copper and brass.
How long has the business been established?
The business has been established since 1988.
How long has the owner had the business?
The current owners have had the business since 1999.
Short overview of the business.
The business has unique authentically African hand crafted product securing it a niche market space. It attracts clientele internationally due to its uniqueness of creativity and the materials used to produce them. The creativity on the product lines is endless which provides continuous growth if applied creatively correctly, aggressively marketed and supported. The business manufactures luxury items and in times of recession as was recently experienced is amongst the first to experience sales losses .The business is 50% reliant on overseas support which in any terms is threatening .The business needs to encourage more local support and awareness to its fantastic products Overall the business present a massive opportunity for expansion and growth given the correct focus and implementations of marketing and advertising locally and abroad. The business can benefit from the introduction of some youthful fresh ideas and energies.
How does the business operate on a daily basis?
The business was inspired by the sights, sounds and ancient beliefs of Africa and its traditions which are re-laid in communication through unique craftsmanship. By the burnishing, heat treating, remodeling and refining of the copper and brass with loving hand crated workmanship the material is crafted into the most beautiful earthy colorful jewelry capturing the spirit Africa. Copper and brass has been used throughout Africa and its population for self-adornment since 500 years B.C .The jewelry is simple yet complex, ancient yet modern and culturally inspired. The business aspirations and operations subsequently extended beyond jewelry and now boldly offer a beautiful range of unique tableware, candlesticks, and silver ware collections. There are 2 workshops, one larger one which houses the bulk of the integral skilled and crafters who are encouraged and welcomed to offer input on creativity which reflects on the products brand. There is another much smaller workshop from which 1 specialized craftsman works with the silver plating. There is a separate adjoining warehouse where the stock is kept and the administrational activities are attended to. The business exports to 41 countries throughout the world markets, it supplies wholesale to local shops by way of distributors who wholesale the product, one of them being the famous Kruger National Park. The business has won several prestigious supplies and industrial trade awards amongst them the local chamber of commerce award.
How are the clients attracted to the business?
The clients are attracted to the business by the hand crafted cosmetic jewelry and brass and copper ornaments .The business has established itself an unsurpassed reputation locally and thorough the world for its specialized hand crafted products and supplies these products worldwide. Word of mouth has been instrumental in attracting clients, however the biggest attraction for existing and prospective clients to the business is the colorful and authentic displays of hand crafted authentic product in stores .Besides the jewelry being beautiful the copper from which the jewelry is mad of has many medicinal purposes . The business also undertakes branding for companies for their corporate identities , trophies , table ware , hotel lamps, and desk apparel.
What Advertising/Marketing is carried out?
The business has agents throughout the world who wholesale the businessâs products. There is advertising on Facebook and the business own web site. The business also has amazing full color brochure displaying many of the businesses designs and creations which are annually updated.
What competition exists?
There is one other much smaller competitor who is not on the same competitive level as the business and does not create, design and sell on the scale that the business does.
What are the seasonal trends?
The business experiences slower months during the months of May June, July and August. The months of September until December are exceptionally busy for the Christmas period.
Is the business VAT Registered?
Yes, the business is vat registered and is able to provide its entire vat documentation to support the sales and trading operations of the business .The business also has its vat clearance certificate available for perusal by a qualified interested buyer. There is up to date financials and current management accounts to support information on the financial standing of the business, all vat is up to date and paid.
What percentage of the business is cash/credit?
The business operates on 80% credit and 20% cash.
What is the age analysis of the debtors book?
The business due to its exports and nature of wholesale supply provides credit to its long time clientâs .The businesses debtorâs book tracks at between 60 to 90 days.
How could the profitability of the business be improved?
The profitability of the business can be improved by personal one and one marketing, revisiting the supporting past and present supporters of the business and ascertain whether their businesses personal issue reflect their current purchases from the business or the business itself can reform, transform and conform to market related demand variances which may have impacted in product sales and their current performance situation .There is opportunity to continue, expand and increase with the creativity on the product lines.
What is the total staff complement?
The staff compliment is 45. There is on file and available for perusal by a qualified buyer of each and all the employees tabled information since their employ .All the staff are on contract and belong to a provident fund, some have funeral benefits and some contribute towards medical aid.
How involved is the Owner in running the business?
The owner of the business is very hands on and involved in the daily management and running of the business.
When does the current lease end?
The owners of the business owner the premises in which the business operates from. The business operates from 2 of the 3 adjoining warehouses and a smaller room where the slier plating is undertaken. The seller is the owner of both of the premises .Both the premises wherein the business operates from can be rented from the seller by a prospective buyer. A acceptable market related rental per square will be afforded thew business as well as an acceptable lease agreement with both the landlords. The average rental per square meter is R35 ,00.exc VAT
What is the annual escalation %?
The annual escalation will be between 8 and 10%
What are the trading hours?
The trading hours are Monday to Thursday 7:00 to 16.30 and Friday 7:00 to 15:00.
Who is the Owner/Landlord?
The owner / landlord is the seller
Is a copy of the lease available?
Yes there will be available to a serious approved buyer for his perusal ,a copy of the lease
Do you require a licence?
Yes, an export license is required and the business has this in place.
What are the main assets of the business?
Among the main assets of the business is the machinery to press the designs. The staff is considered to be one of the main assets as the products are hand crafted
Are any items not included in the sale?
Yes the owners private paintings adorning the walls of the offices are not included , but can be purchased separately is so desired
What is their overall condition?
The overall condition of the machinery is good
Are they presently insured?
Yes the machinery and office equipment is insured
Is a full asset list on file?
Yes, there is a full asset list on file .The assets of the business comprise of workshop tools and machinery and office equipment .All the assets as listed on the asset inventory are included in the sale and purchase price of the business. The assets listed on the inventory are fully paid for and the unencumbered property of the seller and the business and are insured .There are certain works of hanging art and pieces of furniture that are the personal property of the seller and will not be included in the sale and are not on the asset inventory. The assets are in good working order and a good presentable condition. Currently none of the assets are in need of repairing and in the even that they do require any repairs the owner attends to it immediately as the businesses production is dependent and reliant on them being so. The intellectual property the businessâs designs has a value attached and will be included in the sale and of which such design will become the property of the new owner once the business is sold and reverts to them.
What is the reason for the sale?
The reason for the sale is the one owner the wishes to exit the business and semi retires.
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