How long has the business been established?
This business was established in 1992
How long has the owner had the business?
The owner had this business since inception.
How does the business operate on a daily basis?
The Owner/ Manager receives requests for quotations and orders on a daily basis for washing powder and liquid cleaning products. The business manufacturers most products in advance. On receipt of the order, they prepare the products for delivery or collection by the client at the factory.
How are the clients attracted to the business?
Clients are mainly attracted to the business by word of mouth.
What Advertising/Marketing is carried out?
Marketing is done by the Owner by visiting his customers on a regular basis and by advertising on the web.
Does the business have any contract work?
The business does not have specific contract work, but have long standing relationships with industrial laundries, dry cleaners and other industries in this market.
What competition exists?
There is plenty of competition on the same products, but this business supply a niche product to the Dry Cleaners.
What are the seasonal trends?
There are no significant seasonal trends in this industry.
Is the business VAT Registered?
The business is a registered VAT Vendor.
What VAT documentation is on file?
VAT returns are filed by the accountant. Information will be made available on request to qualified buyers.
Are there up-to-date Management Accounts available?
The Sept 17 up-to-date Management Accounts will be available to a serious buyer.
What Balance Sheet and Income Statements are available?
31 May 2017 Balance Sheet and Income Statements are available and on file.
What percentage of the business is cash/credit?
The business normally does requires a 20% cash deposit on order and balance to be paid in 30 days.
How could the profitability of the business be improved?
The profitability of the business can be improved by; - Better marketing. - Increasing the product range. - Open sales shop at the business for sales direct to the public.
What is the total staff complement?
The staff complement is 6.
Give a breakdown of staff/ functions/ length of service?
1 x Manager 1 yr. 1 x Office assistant & Internal sales 9yrs. 1 x Driver & factory assistant 15yrs. 1 x Factory worker 10yrs. 1 x Factory worker 1yr 6mnths. 1 x Factory worker 4mnths.
Do any receive special perks or incentives?
Pro-Rata bonuses 2 x per annum in April and December.
Are they on contract?
All staff is permanently employed.
How involved is the Owner in running the business?
The owner is 100% involved in running the business, but is mainly on the road to keep up the relationship with the customers.
When does the current lease end?
The property belongs to the Seller and a lease agreement will have to be negotiated between buyer and Seller.
Is there an option of renewal & what period?
The renewal period will be negotiate between Seller and Buyer.
What is the annual escalation %?
To be negotiated.
What are the trading hours?
Trading hours from 7h30am to 16h30pm, Mon to Friday.
What is the square meters of the business?
The square meters of the business is 800m2.
Do you require a licence?
The business requires certificates of approval of the products that on the manufactured products.
What lease deposit and/or other surety is required?
To be negotiated.
What are the main assets of the business?
The main assets of the business is plant and equipment and vehicles.
Are any items not included in the sale?
All items as per list on file are included in the sale.
What is their overall condition?
All items are in a good working condition.
Do any require repairing?
None of the assets require repairing.
How have they been valued ?
The assets are valued at current market value by the owner.
Which assets are on lease/HP and with whom?
None of the items are on lease/HP.
Are they presently insured?
All assets are comprehensively insured.
- The business supply a niche product to Industrial Dry Cleaners. - The business have a strong customer base build up over the past 24 years.
- The business need marketing staff. - Electronic marketing must be upgraded. - The business has to improve on its BEE level.
- Additional Marketing staff can improve sales. - In house shop can be open to the public. - Increase in the product range. - Business must deal more with end users.
-The economy can force customers to purchase cheaper but lower quality products.
What is the reason for the sale?
After 24 years in this business the owner wants to move on with his property development business at the coast.
Why is this a good business?
This is a good business with a proven track record and longstanding customer base. The business operates in an active consumer item.
What is the price plus stock and the net profit?
The selling price of the business is R4,450 000 plus stock at R700 000, (debtors and cash of R2,300 000 in the business retained by the seller) with an average net profit of R155 864 per month.
Annual Turnover Amount between R 500 thousand and R 6 million