Fully describe the business's activities?
Originally set up together with one of South Africa's most successful professional boxing managers and promoters, this business operates as a boxing gym with sessions of 60 minutes each with professional boxers as the trainer. This is unique and the upmarket clientele love the concept. The clients are from the surrounding upmarket areas of Sandton and the gym is within a stones throw of all the big corporate head offices in Sandton central where many of the clients work.
How long has the owner had the business?
The owner has been in the business since inception in 2011.
How does the business operate on a daily basis?
The managers open the business at 6am (there are 2 of them). They close at 7pm Monday to Thursday and 6pm on a Friday. On Saturdays they are open from 8-12.
How are the clients attracted to the business?
They advertise on the internet and word of mouth is also effective.
Does the business have any contract work?
The clients attend on a month-to-month basis. This is attractive to most of the clients and as a result the gym has a loyal client base.
What competition exists?
Other traditional gyms but there are no boxing gyms nearby. None of the other so-called "fight" gyms have the equipment and model that this has been successfully based on.
What are the seasonal trends?
From 15th December to January the 7th is quieter as many people go away for the Christmas holidays and June/July is quieter than the other months.
What Balance Sheet and Income Statements are available?
February 2018 Annual Financial Statements are available.
What percentage of the business is cash/credit?
About a quarter of the business is cash. The rest is EFT and credit card payments which are made in advance.
How could the profitability of the business be improved?
By increasing advertising which is largely word-of-mouth at the moment . Also approaching schools and corporate head offices nearby to get their staff onto wellness programmes could increase turnover significantly.
Is Seller finance available and for what amount?
No. The seller would prefer a cash deal.
What is the total staff complement?
There are 2 managers, 8 trainers and the cleaner to make a staff complement of 11.
Do any receive special perks or incentives?
No. The trainers earn commission only.
How involved is the Owner in running the business?
The owner comes in about 4 days a week - sometimes less - usually from 3-6pm. Usually does not come in on Fridays and Saturdays.
When does the current lease end?
The current lease ends in October 2021.
Is there an option of renewal & what period?
Yes there is a 3-5 year option for renewal. The owner is currently on a 5 year renewal.
What is the annual escalation %?
10% per annum.
What are the trading hours?
Monday to Thursday 6am to 7pm. Fridays 6am to 6pm. Saturdays 8am-12pm.
What is the square meters of the business?
260 metres squared.
Is a copy of the lease available?
Yes, a copy of the lease is available.
Do you require a licence?
No licence is required to operate this business.
What lease deposit and/or other surety is required?
Two months deposit is normally required but can be negotiated with the landlord.
What are the main assets of the business?
2 x proper Boxing rings, treadmills, punch bags, sound system, gym equipment, water coolers etc
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
No nothing needs to be repaired. The maintenance is good and ongoing.
How have they been valued ?
Net realisable value.
Which assets are on lease/HP and with whom?
There are no assets on lease. Everything is paid for.
Are they presently insured?
Yes, comprehensively insured.
Is a full asset list on file?
Ideally situated for the Sandton CBD market. Niche market and different from other gyms because they train with professional boxers. Equipment is proper boxing equipment with real boxing rings etc.
Haven't tapped into the corporate and schools market at all. Could motivate and train the trainers to up-sell more.
There is capacity for more clients to train on a daily basis. So it is positioned for scalability.
Other gyms in the market but this one is niche because of the professional boxers doing the training sessions. Also the look and feel of a proper boxing gym which other "fight" gyms struggle to emulate. The clients love this about this gym.
What is the reason for the sale?
The owner wishes to relocate outside of Gauteng.
Why is this a good business?
Scalability. Profitability and niche market. No other boxing gym as authentic as this.
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