How does the business operate on a daily basis?
The owner oversees the business on a day to day basis, which consists of: receiving calls for new products/services or issues at hand; either dealing therewith or assigning an external contractor (2 on call); issuing invoices/statements once a month and tracking payment thereof. The owner spends 2-3 hours a day on this business (max).
How are the clients attracted to the business?
Clients (some 55, with none over 25% of turnover) are attracted to the business by word of mouth only. Unless one really wants to grow this stable business a sales team s not required.
What Advertising/Marketing is carried out?
The business has corporate brochures with details on their services and a website.
Does the business have any contract work?
60% of the GP was based on contracts that are for a period longer than 12 months up to 60 months, with 10% being through technical assistance and the rest (30%) being hardware/business centres etc sales. However, since the seller has being putting his energies into his new business, the hardware sales have fallen off completely reducing his GP by 30% and similarly his NP to some R50 000pm vs the R78 000pm shown in the Report. Since a new owner can get such re-started easily or just push VOIP/DATA sales the Seller will not be reducing his Sale Price.
The turnover pa is very stable even with exiting and entering clientele.
What competition exists?
There are competitors however this is a growing market and demand is sufficient for further growth in the business.
What are the seasonal trends?
The business is busy throughout the year.