Fully describe the business's activities?
This franchise liquor store is 1 of only 2 in this limpopo town, the business sells to Retail and Wholesale customers.
How long has the business been established?
This business was established in 2003.
How long has the owner had the business?
The current owner has owned the business since 2015.
How does the business operate on a daily basis?
This manager run business operates 6 days per week, situated in the busiest road in town.
How are the clients attracted to the business?
Most clients are walk in, as the liquor store is 1 of only 2 in town , it is well known in the local community.
What Advertising/Marketing is carried out?
Currently no marketing is being carried out.
Does the business have any contract work?
The business has no contract work , but does have several long term wholesale customers.
What competition exists?
Only 1 other liquor store operates in town.
What are the seasonal trends?
Holiday periods tend to be busier.
Is the business VAT Registered?
Yes, the business is vat registered.
What VAT documentation is on file?
Vat 201 returns are available.
Are there up-to-date Management Accounts available?
Detailed management accounts are available.
What Balance Sheet and Income Statements are available?
Financial statements are available for several previous years.
What percentage of the business is cash/credit?
No credit is transactions are carried out , only cash sales are done.
How could the profitability of the business be improved?
Effective marketing will increase the profits. a Sales Rep can market the business to wholesale clients in the area surrounding the town, as many shebeens and informal settlements exist in the area. Some suppliers to the business give discounts on purchases if the outstanding account is settled on the day of delivery, by investing approximately R 300 000-00 the new owner can take advantage of these Settlement Discounts from suppliers.
Is Seller finance available and for what amount?
Yes, the current owner would be willing to negotiate the terms of the sale.
What is the total staff complement?
The business has a staff of 4 , including the manager.
Give a breakdown of staff/ functions/ length of service?
2 employees have worked at the business for 10 years. 1 employee has worked at the business for 1 year.
Do any receive special perks or incentives?
Some employees are paid a cash bonus over the holiday period, but this is not a contracted bonus and is paid at the owners discretion.
Are they on contract?
Yes , all employees have employment contracts.
Do any have management potential?
Yes , 1 employee has management potential.
How involved is the Owner in running the business?
The owner is involved in the daily management of the business , but an employee can be promoted to a management position.
When does the current lease end?
The current lease ends in May 2018.
Is there an option of renewal & what period?
Yes , the lease can be renewed for a period of 3 years .
What is the annual escalation %?
The annual escalation is 6 %.
What are the trading hours?
Monday to Thursday : 8 am to 6 pm. Friday : 8 am to 7 pm. Saterday : 8 am to3 pm.
What is the square meters of the business?
Approximately 260 sqm.
Is a copy of the lease available?
Yes , copy of the lease is available.
Do you require a licence?
Yes , a liquor license is required. The liquor license is upto date and will be transfered to the buyer.
What lease deposit and/or other surety is required?
a Deposit equal to 1 months rent will be needed as deposit by the landlord.
What are the main assets of the business?
A full asset list is available. Assets include, but not limited to, the following: Fridges,Shelving,Cigarette displays,Computer equipment and a generator.
Are any items not included in the sale?
Several Display fridges belong to suppliers to the business ,the use of these fridges by the business will continue when the business is sold.
What is their overall condition?
All equipment is in fair working condition.
Do any require repairing?
No repairs are needed to equipment at present.
How have they been valued ?
The assets have not been valued at present.
Which assets are on lease/HP and with whom?
No outstanding lease or HP agreements on any of the assets.
The business has only 1 competitor in town. The business has been established for 14 years. Has made consistent good profits.
The business needs additional capital to make effective use of Same day payment discounts from Suppliers. ( approx R 300 000-00)
By employing a Sales Rep ( on commission basis) and doing effective marketing , sales can be improved.
No threats exist at present.
What is the reason for the sale?
The owner has several other business interests that he would like to focus on.
Why is this a good business?
This business has only 1 competitor, and has potential to increase sales in the Wholesale market.
What is the price plus stock and the net profit?
Selling price : R 1 500 000-00 (Excluding vat and stock) Approximately R 500 000-00 stock.
Annual Turnover Amount between R 500 thousand and R 6 million