Fully describe the business's activities?
This is an award winning advertising based business located in the northern suburbs of Johannesburg, that promotes the advertised material to a captive audience; with the result that it is very easy to sell the advertising and many of the franchises sell out their quota of adverts within the first couple of months in the year. The issue then becomes one of cashflow management and budgeting effectively for the remainder of the year. Effectively you need to sell 0.2 ads a day! Apart from selling the advertising space, the only other demand on the franchisee is to visit each site twice a month to check everything is fine and to load the latest adverts onto the system - there are a total of 7 sites. The clients may change their adverts once a month; the franchisor handles all the related artwork and the franchisee is the liaison person. As can be seen, the advertisers get a great deal as their ad is shown across 7 sites by default. PLEASE NOTE â The figures presented are based on the owner doing all the work and is a forecast of the revenue with all ads sold. All expenses are in line with the franchisor's recommendations.
How long has the business been established?
The business was established in 2011
How long has the owner had the business?
The current owner has had the business for just over a year
How does the business operate on a daily basis?
The business is owner run and there is not a great deal to be done on a daily basis
How are the clients attracted to the business?
The owner calls on local businesses to sell the ad space
What Advertising/Marketing is carried out?
There is a web site for the franchise and each site has an advertising board attracting future business.
Does the business have any contract work?
Yes, the clients all sign a 1 year agreement.
What competition exists?
Other types of advertising, but no direct competition.
What are the seasonal trends?
Depending on how the advertising space has been sold this can either be flat throughout the year or a burst of activity in the beginning and a quiet rest of the year.
Is the business VAT Registered?
No - below the threshhold
Are there up-to-date Management Accounts available?
Yes. Figures in our report are forecasts based on all slots being sold (and all income attributable to the new owner). You would be purchasing the business with some slots unavailable for the remainder of the year.
What percentage of the business is cash/credit?
EFT - paid in advance
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
All the ad slots need to be sold to maximise profitability, and once all these slots have been filled, if you keep the advertisers happy with regular feedback and they feel they are getting value, they will renew from year to year, making it that much easier for you to run the business with time to spare.
Is Seller finance available and for what amount?
Cash buyers only
What is the total staff complement?
The current owner runs the business on her own.
When does the current lease end?
This is a work from home opportunity - no premises requried
What are the trading hours?
You are free to set your own hours within the operating hours of your target market.
Do you require a licence?
No licences required
What are the main assets of the business?
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
Repairs are required from time to time, these are carried out by the franchisor.
How have they been valued ?
Franchisor's valuation - replacement cost
Which assets are on lease/HP and with whom?
All assets are fully paid up
Are they presently insured?
This business is part of an award winning franchise group and is located in a good area that is less susceptible to the economic downturn. The franchisor arranges the advertising sites. Work from home during the hours that suit you. Very easy to sell the advertising slots - as part of your training the franchisor assists with the first few sales. Excellent franchisor support.
Limited advertising slots available
Replicate your success in these two franchises with additional franchises as areas become available.
None other than economic circumstances, which can also be an opportunity, or an additional selling point, as these ad spaces are more affordable than many other options.
What is the reason for the sale?
The current owner's circumstances have changed, with emigration being likely.
Why is this a good business?
Award winning franchise that is easy to operate from home with a secure income and low overheads. The franchise is well-known in the industry with a good reputation amongst clients. Easy to sell advertising space and provides clients the exclusivity to market and advertise their business and brand on a low cost scale to a captive audience.
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