Fully describe the business's activities?
The business supplies carefully selected imported quality golf equipment (carts, clubs, bags, etc) plus accessories at affordable prices. They provide services such as club repairs, re-grips and re-shafts and also rent out golf sets to visitors. The business uses freelance agents elsewhere in South Africa. PLEASE NOTE : The manager will leave the business after a 2-month hand-over period.
How long has the business been established?
The business was established in the early 90's.
How long has the owner had the business?
How does the business operate on a daily basis?
The business is run by a manager and a technician who does the repairs. The manager is the customer-face and does the accounts, supplier- and client liaison and other administration. The owner (not on site) does the product selection, order compilation and negotiation.
Does the business have any contract work?
Recurring business from satisfied customers.
What competition exists?
There is no wholesale competition in the Western Cape area.
What are the seasonal trends?
The trends are directly linked to golf, seasonal weather and, to a lesser extent, tourism. October to April is a good period for business.
What marketing / advertising is done and how are clients attracted to the business?
Apart from national branding, the business has an interactive website, Facebook page and alliance with Takealot. There are referrals from clubs and their pros and also participation in golf days and events.
Is the business VAT Registered?
Yes and all VAT documentation is up-to-date.
Are there up-to-date Management Accounts available?
Management accounts will be made available.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Apart from the Take-a-lot & clubs arrangements, all business is cash.
What is the age analysis of the debtors book?
30- to 60-day arrangements with clubs and pros. Takealot works on a consignment stock basis and forms a smaller part of the business.
How could the profitability of the business be improved?
Become more involved in golf days and such events. Contract more freelance agents in other provinces.
Is Seller finance available and for what amount?
Seller finance is limited to a favourable arrangement on stock reduction.
What is the total staff complement?
1x manager and 1x repair person on site with the owner doing work on stock acquisition.
Give a breakdown of staff/ functions/ length of service?
The manager is responsible for day-to-day running of the shop, customer handling, assists with product sourcing / importing of goods (mainly from the East) and associated administration . The technician does all the repairs etc. There is a freelance agent deployed in the Eastern Cape.
Are they on contract?
Normal labour legislation applies.
Do any have management potential?
The manager will leave after the hand-over period.
How involved is the Owner in running the business?
A small percentage of his time and mainly with supplier arrangements, product importing and financial management.
When does the current lease end?
Is there an option of renewal & what period?
Lease can be renewed at 3-year intervals for another 3 years.
What is the annual escalation %?
What are the trading hours?
Monday to Thursday 08h30 to 17h00 Friday 08h00 to 16h00
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
The import licence is linked to the cc and, should the cc be bought, is transferable. Alternatively, the new owner will apply for a licence whilst trading on the Seller's licence until such time as a licence is issued. The period and conditions will be agreed on in the sales contract.
What lease deposit and/or other surety is required?
2 month's rental is required.
What are the main assets of the business?
Fixtures and fittings.
Are any items not included in the sale?
All assets are included in the sale and will be specified on the asset list.
What is their overall condition?
Good operational condition.
Do any require repairing?
Routine maintenance apply.
How have they been valued ?
Are they presently insured?
All assets are insured.
This can be regarded as an easy-to-run business. Small staff complement, no major competition and not much owner involvement required should a manager be appointed. The business is well-known and -supported. 5-day work-week.
Whilst the owner involvement may be minimal in terms of time, it is a vital aspect of the business. The stock value forms a large part of the purchase price of the business, however, excluding the stock would put the ROI in the region of 55% AND with the additional income brought into the equation, 125%.
Good expansion possibilities especially with the contracting of freelance agents in other provinces / regions. There is the option to appoint a sales person to improve the retail sales.
No threats perceived.
What is the reason for the sale?
The owner will be focusing on his other business interests.
Why is this a good business?
This is a relatively simple business to run with good returns. It is semi-relocatable should a new owner wish to do so.
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