Fully describe the business's activities?
Retailers and suppliers of furniture via e-commerce nationally and through a branch in George Cape.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The Owner and his wife are supported by an extremely efficient saleslady in this Main Road retail store. The Owner handles the General Management functions and business development project, and his wife the Accounting responsibility
How are the clients attracted to the business?
Through 2 x trading web sites as well as the high visibility of the store itself and high impact signage and branding.
What Advertising/Marketing is carried out?
Internet, but since well established showroom much word of mouth and repeat business Centre Court promotions are held in local malls
What competition exists?
There are numerous other retailers within this industry, but this business has its own competitive advantage through productivity, style, pricing and service
What are the seasonal trends?
There is a slight dip during the cooler months
Is the business VAT Registered?
What VAT documentation is on file?
Up to date as and when required
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Up to date as and when required
What percentage of the business is cash/credit?
Turnover is predominately through EFT, with Credit Cards comprising about 30% and cash about 20%
Profitability and Projected viability
Please note that the profit as indicated on this document is as per the projected cash flow for the next financial year. The owner is prepared to release the current financial status to any qualified buyers who have completed a Non-Disclosure document.
What is the total staff complement?
3 Staff inclusive of the owners
Give a breakdown of staff/ functions/ length of service?
The Manager has had previous experience.
Do any receive special perks or incentives?
The Manager is on a fixed salary as well as an incentive bonus based on performance
How involved is the Owner in running the business?
On a daily hands on basis
When does the current lease end?
Is there an option of renewal & what period?
Yes 1 year
What is the annual escalation %?
What are the trading hours?
Monday to Fridays: 09-00 to 5-00pm Saturdays: 08-30 to 1-00pm
What is the square meters of the business?
Approximately 100 square meters
Is a copy of the lease available?
What lease deposit and/or other surety is required?
Subject to negotiation
Are any items not included in the sale?
Yes, the owners private cell phones and the one IPad
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owners second hand value
Are they presently insured?
This business is a little different from an average retail furniture outlet as it offers a sought after range of furniture, with very strong on-line sales supported by an extremely efficient delivery system nationally. Added to that they also have items of interest from fine artwork by recognised artists, to antique items that are offered to them or acquired by the Owner at auctions, sales etc. They also have ranges of items from cooking pots to table lamps etc, which are sold directly from the store, or advertised and sold via the web.
There are no known weaknesses to an Owner who stays involved in the business and has a passion for product and sales, and enjoys interacting with customers.
There are numerous opportunities for the Buyer to pursue, but initially it would be advisable to make use of the product and routes to market that are currently in place and ensure that they are fully utilised.
The Buyer should follow the tried and trusted systems and methods that are currently in place and not make changes until they fully understand the nuances of the business.
What is the reason for the sale?
The Owner needs to sell as he has serious health issues which have been going on for a few years and which show no sign of improving in the near future, and he needs to focus on his own well-being.
Why is this a good business?
Well established business with sought after product range in high profile area, and supported with a very good inventory availability and swift delivery service recognized and operating countrywide. Strong web based sales nationally, and the Buyer will be entitled to retain the web based sales for the Cap region. The in place development strategy has not commenced, due predominately to the health setbacks that the Seller has experienced
What is the price plus stock and the net profit?
The asking price of the business inclusive of R200K worth of stock at retail price is R320,000. The assets are in the region of R70,000. The monthly profit is in the region of R35K
What is the profile of the ideal buyer of this business?
The ideal buyer should be an entreprenuer and enjoy retail trading. They should also wish to further develop the many opportunities that this business offers, and if the aquire the total entity, they should see themselves in the role of franchisor, and as such be prepared to travel nationally as required. Note that the current owner retains the right to qualify potential buyers in line with the business development strategy in place
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