Fully describe the business's activities?
This is a home industry supplies shop that sells the best cakes and baked goods in Rustenburg. The shop also stocks party goods, presents and much more.
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 does all the baking from her home and delivers to the shop on a daily basis.
How are the clients attracted to the business?
The shop is located in a very busy and popular shopping center. The business is extremely well established and has an excellent track record.
What Advertising/Marketing is carried out?
The owner advertises in the schools news letters, she also has a facebook page for the business and it's own website.
Does the business have any contract work?
What competition exists?
No immediate competition.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT201's are available.
Are there up-to-date Management Accounts available?
Yes. Management statements as at 31 August 2016.
What Balance Sheet and Income Statements are available?
Financial statements for the year ended 28 February 2016 as well as Management statements for the period ended 31 August 2016.
What percentage of the business is cash/credit?
50% Cash and 50% Card. No credit.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
By providing a bigger variety of products.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1x Manager (7 years) 1x Packer (7 years) 2x Assistants (1 year)
Do any receive special perks or incentives?
A monthly performance bonus forms part of their salary agreement.
Are they on contract?
Do any have management potential?
A manager is already in place.
How involved is the Owner in running the business?
The owner is always available and works mostly from home.
When does the current lease end?
31 August 2019.
Is there an option of renewal & what period?
Yes, 5 years.
What is the annual escalation %?
What are the trading hours?
09:00 - 17:00
What is the square meters of the business?
196 square meters.
Is a copy of the lease available?
Do you require a licence?
What are the main assets of the business?
Shop equipment and stock.
Are any items not included in the sale?
All assests are included except for 1 fridge that belongs to Coca Cola.
What is their overall condition?
Do any require repairing?
How have they been valued ?
The values were provided by the owner and her accountant.
Which assets are on lease/HP and with whom?
Are they presently insured?
The business has been established for 21 years and has an excellent track record. The location is favourable in a busy strip mall and the shop is highly popular. The Current owner is also willing to supply the shop with baked goods after the sale.
The owner is not present at the shop 100% of the time and losses can be occurred from time to time.
If the new owner could start providing contract work the profitability could be increased. Better marketing and maybe delivery services could also help this business to grow.
No immediate threats are perceived.
What is the reason for the sale?
The owner would like to retire, but would be willing to keep providing baked goods to the new owner.
Why is this a good business?
The business is known by everyone in Rustenburg and provides the best quality cakes and snacks in town.
What is the price plus stock and the net profit?
R 2,500,000.00 with a net profit of R1,130,000 per year.
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