How long has the business been established?
The business itself was established before 2012 and was operated under a different name.
How long has the owner had the business?
The current owner established this business 2012.
Describe the business and its activities.
This is a 9 bed roomed guesthouse. It is located in an up market area, servicing mostly business people from out of town. Short and long term stay options are available. There are 2 triple rooms with spacious en-suite bathrooms, 4 double rooms with en-suite bathrooms and one family suite which is separate from the rest of the guesthouse which consists of 2 bedrooms and a spacious bathroom. There is a 9th bedroom with a en-suite bathroom which is the managerâs accommodation. There is a large office for the manager to make use of in the day. The guests have a lounge, dining room, breakfast room and 2 beautiful covered outside areas to relax in. Guesthouse offers breakfast, lunch boxes and dinner. Free Wi-If and DSTV is available in all the rooms. They are registered with all the big travel agencies. Preferred member of Rennies Redstamp Club as well as Nightsbridge. It also offers a laundry service and will also arrange transport for guests. Manager is very hands on and the staff are competent in their roles.
How does the business operate on a daily basis?
The manager sees to the running of the business. The manager checks and confirms bookings that have been received. Manager ensures staff are doing their duties and that guests are comfortable. Guesthouse offers a laundry service and will also help with arrangements for transportation for guests. Guesthouse offers breakfast, lunch boxes and dinner.
How are the clients attracted to the business?
The guests are attracted to the business by strong word of mouth referrals, it is listed by major travel agencies as preferred accommodation. There is continued support from a loyal client base. The attractive website of the guest house offers exposure to local and overseas travelers and enjoys positive comments and guest reviews. The business enjoys frequent support from business people traveling in the area. The guesthouses accommodation is fairly priced and affordable. Additional attractions encouraging visitors in the geographical are; a popular waterfront comprising of a mini golf course, 10 pin bowling arena, children's play areas and popular restaurants. The area has a new shopping Mall and new restaurants attracting visitors from neighbouring areas seeking overnight accommodation. The popular Graceland Casino is nearby with loads of live entertainment and an 18 hole Gary Player Golf course.
What Advertising/Marketing is carried out?
The marketing is done mostly on the Internet with the website being listed on various prominent platforms. The guesthouse is also linked to various national guest house accommodation directories. The word of mouth referrals play a strong role.
What competition exists?
There are numerous competitors in the surrounding geographical area, some enjoy similar support to this business. Most guesthouses in the area do not have the benefit of this guesthouses historical trading, continued support and excellent reputation.
What are the seasonal trends?
The business has regular consistent clients throughout the year, many being regular clients and business people frequenting the region.
Is the business VAT Registered?
No, the business is not VAT registered.
Are there up-to-date Management Accounts available?
Yes there are up to date management accounts on file.
What Balance Sheet and Income Statements are available?
February 2015 February 2016
What percentage of the business is cash/credit?
The business operates on 100% cash or by way of EFT deposits payments.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
4 staff members with the manager.
Give a breakdown of staff/ functions/ length of service?
The staff compliment comprises of 4 employees including the owner. There is a supervisor who has been with the business since 2013 and her duties including assisting with the cleaning, ensuring the standards of cleanliness of the laundry and rooms and property is maintained, ensuring the high standards are upheld. She is also the staff supervisor and assists with the serving of meals. There is a General all-purpose cleaner who has been with the business since 2014. There is a newly employed all-purpose employee who assists with the cleaning. The owner herself is the manager and cook and is 100% hands on, oversees and manages the business in its entirety on a 24/7 daily basis.
Do any receive special perks or incentives?
The staff may at the owners discretion receive bonuses depending on their personal performance and that of the business.
Are they on contract?
The staff are on contract.
How involved is the Owner in running the business?
The manager/owner is very involved in the running of the business and she sees to the following daily duties: administration and bookings, reconciliation of bank statements, purchasing of fresh produce, meals are cooked for confirmed bookings, she is involved in the preparing of set menus for breakfast and dinner, staff duties are given in the mornings after breakfast is served and manager ensures that they are carried out. The managers involvement also includes serving dinner in the evenings and preparing lunch boxes for the following morning. The orders to the suppliers are placed and delivered weekly. Inspection of rooms are done randomly.The marketing of the business is done weekly. Maintenance or repairs to the guesthouse are done immediately. The manager is on standby to cater to guests needs and to assist wherever possible.
When does the current lease end?
There is no lease as business is being sold with the property.
What are the trading hours?
The business is a hospitality service which accommodates visitors arriving and leaving at different hours. It is therefore a requirement that the owners make themselves or a responsible manager available during the day and in early mornings or late evenings if necessary.
Do you require a licence?
A general health and safety license is required. Insurance is also required for public liability. The current licenses and registrations required for the business are all active and in place. The property is registered on its municipal utility billing as business and commercial. The business currently operates under a Pty.
What are the main assets of the business?
The assets of the business comprise of the property itself, the building improvements on the property, the fixed and loose assets on the property all of which will be listed on an asset inventory and are utilized on a day to day basis to facilitate the operations of the business. Only the assets as listed on the inventory, the property and the building improvements will be included in the sale and purchase price of the business. The assets are insured and are in a good presentable working order. There are some minor pieces of furniture which are the personal property of the seller and which are not on the asset inventory list and will not be included in the sale of the business. The remaining outstanding bond on the property will be settled with the financial Institution assisted by the sellers conveyance attorneys. Acceptance of sale of the business will be agreed upon in writing and concluded in accordance with property legislation. The purchaser will have to pay for the related property transfer duties costs incurred, as with any normal property purchase.
Are any items not included in the sale?
A few small pieces of furniture, which the owner will show to the buyer on viewing the guesthouse, which are not included in the asset list.They will not effect the operating of the guesthouse.
What is their overall condition?
Good overall condition, well maintained.
Do any require repairing?
No, everything has been well maintained.
How have they been valued ?
Yes they have been valued.
Will Seller settle or Buyer to take over?
The seller to settle.
Are they presently insured?
Yes, they are insured.
The business is well established. This establishment has worked hard at acquiring a solid client base and enjoys repetitive support. It has the potential of increasing its occupancy by advertising. The property itself is well maintained. The standard of the rooms is high, with attention to detail, cleanliness and comfort. This guesthouse enjoys positive guest reviews on its website.
The weakness of the business is its lack of aggressive marketing and adverting.
The business has opportunity to increase its occupancy by adverting and marketing. Focus should be given to corporates for functions and events.
There will always be new entities entering the accommodation service and hospitality industry. This businesses survival in the industry can be attributed to the businesses long historical trading, offering high standards and customer care.
What is the reason for the sale?
The seller and her lifelong partner are looking for a change in lifestyle and are wishing to semi retire in the Western Cape
Why is this a good business?
The guest house is a well known landmark in the area with consistent support from its regular customers. It has a reputable reputation for excellent service, providing a homely comfort to guests.The business is regulated and registered to operate as a guesthouse.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million