Sectors / Category

Annual turnover

  • Mandate: 29596
  • Added: 06 Jun 2018
  • AFS
  • 750

Franchise Commercial Services long established and recently revamped, in popular Garden Route town.

Western Cape, Garden Route
Mandate 29596
Added 06 Jun 2018
R 420,000* ZAR
Stock: R 10,000
Assets: R 420,000
R 38,289 ZAR
Noel Heath
Aldes Triumph
Western Cape
Western Cape

Based in popular holiday destination and large local community, this town enjoys high summer tourism esp Gauteng visitors, as well as many winter initiatives to attract visitors. This business offers commercial services to the public as well as to local businesses in the form of printing, photocopying, binding, printing plans and large documents, media services, Internet Cafe, IT assistance, printing (design) of Point of Sale requirements business to business, courier, postage etc.

R 420,000* ZAR
Stock: R10,000
Assets: R420,000
R 38,289 ZAR

Based in popular holiday destination and large local community, this town enjoys high summer tourism esp Gauteng visitors, as well as many winter initiatives to attract visitors. This business offers commercial services to the public as well as to local businesses in the form of printing, photocopying, binding, printing plans and large documents, media services, Internet Cafe, IT assistance, printing (design) of Point of Sale requirements business to business, courier, postage etc.

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Fully describe the business's activities?
Digital Printing Internet Services Worldwide Courier Digital Printing Large Format Printing Photocopying Photo Printing Graphic & Web Design Internet Postal Laminating & Binding Custom Rubber Stamps Faxing

How long has the business been established?

How long has the owner had the business?
Since January 2015

How does the business operate on a daily basis?
The Owner and his wife handle the full management function of the business supported by staff member on the front desk. The Owner also handles media requirements as well as IT assistance. It must be pointed out that this business is a franchise, and as such the Buyer needs to pay a joining fee and be approved and trained by the Franchisor. The fee is included in the price asked.

How are the clients attracted to the business?
High visibility through corporate above the line advertising. Strong local Social Media component. Action Ads on weekly basis....local initiative. In house mailing list of over 2000 local clients used for promotional activities.

What Advertising/Marketing is carried out?
Above the line Marketing and Promotional initiatives by Franchisor.

Does the business have any contract work?
This business is the chosen service provider for a number of local companies as well as the branches of many national retailers. Like most businesses in this region, there are no formal contracts but solid relationships exist.

What competition exists?
This business is unique as it offers all the office services under one roof.

What are the seasonal trends?
The town itself holds many promotional initiatives throughout the quiet periods to encourage visitors which assists in reducing the high seasonal variance experienced by many businesses such as restaurants.

Is the business VAT Registered?
No, but limit has been reached and the new Owner will need to register for Vat

Are there up-to-date Management Accounts available?
Yes, will be made available, as and when required.

What percentage of the business is cash/credit?
There are a number of COD clients, so very seldom is extended credit offered. Mainly cash and card or EFT. Cash to card ratio about 50/50. Credit Card fees 3.5% ; Debit Card 2.5%.

How could the profitability of the business be improved?
1) A new Owner should be prepared to get out and meet business clients at their premises as this will solicit more work. 2) If the new Owner is a "hands-on" type person, and enjoys interacting with clients, the business will show growth. 3) Register with Government/ Municipal date base and increase work through the allied departments such as SAN Parks etc

What is the payback period?
under 2 years

What is the total staff complement?
3 with the owners.

Do any receive special perks or incentives?
No, and bonus's will be at managements discretion and subject to business performance.

Are they on contract?
Normal conditions of employment.

How involved is the Owner in running the business?
Both the owner and his wife are involved in the business on a daily basis, but each with different job functions. He has strong IT skills which has brought a new dimension to this business in the form of IT support and media design. The owners wife handles many of the other general management requirements of this business.

Is there an option of renewal & what period?
Yes, currently year on year.

What is the annual escalation %?
7% Negotiable.

What are the trading hours?
Monday to Friday: 08-00 to 5-00pm. Saturdays and Public Holidays 09-00 to 1-00pm.

What is the square meters of the business?
100 square meters.

Who is the Owner/Landlord?
Sandrao Delmeer Properties

Is a copy of the lease available?
Yes, as and when required.

Do you require a licence?
Yes, a Publication Media Public Board for Internet Cafe'....approx R500 per annum.

What lease deposit and/or other surety is required?
One Month rental deposit.

What are the main assets of the business?
Shop fittings, computers and point of sale, desks and furniture, as well as other office type equipment. A CCTV monitoring system is in place which can be viewed off site on a smart phone or computer.

Are any items not included in the sale?
Yes, owners laptop not part of the business.

What is their overall condition?

Which assets are on lease/HP and with whom?
There are 3 printers which are on lease.

Will Seller settle or Buyer to take over?
Buyer to take over leases.

Are copies of agreements available?

Are they presently insured?

National brand Franchise, with strong above the line marketing. Offer niche market services not readily found under one roof. Have strong repeat business and referral component. Business offers many niche market components that contribute to the total, so not dependent upon one route to market.

The main weakness of this type of business is that the town is affected by seasonality, but a large part of this is offset by all the local promotional initiatives that they have in the town to draw visitors, especially during the quiet winter months.

Excellent opportunity exists within the media aspect of this business for creative design and printing. IT support opportunities also if Buyer has those skills as sought after in this business.

The uniqueness of this business with its various product offering help alleviate dependency on one product channel.

What is the reason for the sale?
The Owner has settled into the business and managed it well over the past few years, but it is not his first choice and he would like to mover back into an IT environment. His wife does not wish to take over the business on a full time basis and wishes to pursue her own interests, however she is prepared to assist with a comprehensive hand over to the new owner.

Why is this a good business?
This business already has regular feet, and offers comprehensive services, but development of other services such as Media Design and print, as well as IT services are still relatively low. The new Owner should be prepared to interact with local business Owners with the intent of developing these services, as well as supply of competitively priced stock, and further develop the courier services which as viable and already trading solidly. Full financials are available, and itemise all income by category, which indicates the viability of the various income streams.

What is the price plus stock and the net profit?
The owner is asking R430,000. Stock is in the region of R15,000, and the average monthly profit is R38,000. New owner cannot take over the revamp loan – will have to settle either cash or via own loan. The advantage is that the store will not require an upgrade for at least 5 years. The store has now been fully revamped as per the Franchisors requirements. Over the past year it has shown very strong growth, and will be a valuable source of income to a "hands-on" operator.

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Aldes Triumph

1 members
24 active mandates
Western Cape
8A Loerie Street, Bergsig

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