Fully describe the business's activities?
A home away from home . Established more than 10 years ago. Situated in a residential area with easy access to the CBD. Supermarket and other amenities located within walking distance . The guest house is supported by corporate & business people from Jhb and Pta , tourists en-route to other destinations.
How long has the business been established?
Established in 2006
How long has the owner had the business?
The Owner initiated the guest house with section by section improvements. Due to the demand for accommodation , the Owner improved and extended the guest house with additional rooms. Currently 8 rooms with shower facilities & bathroom ensuites . Bar Fridge, TV, DSTV, breakfast included. Dinner on request. Lunch packs on request.
How does the business operate on a daily basis?
Regular clients call in for a booking via telephone or email. Each guest has their own entrance , remote and keys. TV , lounge and home cooked meals are a winner. The owner stays on the premises for easy management. This however can be converted into more rooms for guests if so desired.
How are the clients attracted to the business?
The location , service and the affordability .
What Advertising/Marketing is carried out?
Social Media Web Adverts Travel Ground Safari word of mouth
Does the business have any contract work?
None. It could be a rewarding possibility for the buyer .
What competition exists?
Competition is all around. With the diversity and range of guesthouses , there is a place for every individual depending on the type of accommodation and price required.
What are the seasonal trends?
The business occupancy is stable throughout the year with the exception of December and January including Easter holiday season. The guest house is mainly occupied by business representatives , corporate institutions , contractors and regular clientele.
Is the business VAT Registered?
NOT VAT Registered
Are there up-to-date Management Accounts available?
The business operates on a guest house booking system.
What Balance Sheet and Income Statements are available?
Financial Statements for 2015/2016
What percentage of the business is cash/credit?
Most payments are made via EFT & Cards
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Yes . Most certainly . Possibility of Retirement Village development or regular accomodation.
What is the total staff complement?
2 Staff plus Owner
Give a breakdown of staff/ functions/ length of service?
Domestic to clean guesthouse - R2800 + taxi fare + 1 meal per day Gardener - R150 per day. I meal per day
Are they on contract?
Yes on contract
How involved is the Owner in running the business?
Owner is very involved in the business . The bookings , accounts , purchases , supervision, marketing and making of breakfast .The owner feels that a personal touch is needed to keep guests coming back. After a long day guests want to enjoy a relaxed homely atmosphere , friendly conversation and quiet time.
When does the current lease end?
Owner of the property
What are the trading hours?
Trading hours are : Monday to Sunday 6:30am to 9pm 6:30am to 8pm 7 pm supper is served
What is the square meters of the business?
1900m2 - no room for further expansion
Do you require a licence?
Guest House license registered by the Local municipality No Grading . Listed Guesthouse .
What are the main assets of the business?
See Asset list on file including the property
Are any items not included in the sale?
Only sentimental items are excluded.
What is their overall condition?
Do any require repairing?
Regular maintenance is required to keep the buildings and rooms in top form condition
How have they been valued ?
Are they presently insured?
Yes with Outsurance
Strengths : 1. Atmosphere relaxing and homely 2. Food of good quality and sizable food portion size 3. Affordable
Weakness : 1. Economy 2. Advertising "board " visibility to attract more clients from the main road
Opportunities: 1. Senior lodging - retirement village
What is the reason for the sale?
Owner would like to retire & spend quality time with family
What is the price plus stock and the net profit?
R2.7 million including property
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