Fully describe the business's activities?
Sports and recreation facilities including fully licensed bar. Hosting of national tournaments, team building, private functions and entertainment. Pre-booked matches during regular intervals each day at allocated time slots. Fixed pricing per game contributes to the income generated to the business. Experienced local umpires are hired to officiate all the games. The facilities include 3 courts designed to accommodate various sports, fully equipped bar with ample seating for spectators.
How long has the business been established?
How long has the owner had the business?
12 years and currently operating.
Does the business own a generator?
Yes, the generator is operated during electricity down times. It has the capacity to fully continue business operations.
How does the business operate on a daily basis?
Attracts all age groups, male and female, who have a passion for sports. This business operates mainly in the evenings from 17:30 to midnight. 6 days per week. This is a dynamic business which combines sport and social networking amongst the team members. There is an aura of a healthy competitive spirit which livens up the sports arena. The teams book and are allocated time slots, payments are made per game or per season in advance.
How are the clients attracted to the business?
The facilities are unique and caters to a wide variety of sports people with diversified needs. The venue is fully equipped to satisfy requests made for special functions. Fast foods, including hot dogs, toasted sandwiches etc are prepared and sold on competition days. This indoor sports venue is ideal for busy individuals who prefer to engage in evening sports activities.
What Advertising/Marketing is carried out?
Apart from some social media, there is very little advertising at this stage.
Does the business have any contract work?
These facilities are used on regular, monthly and annual basis by various corporate companies as well as various sports clubs.
What competition exists?
This is a unique facility and there is no competition in the area. The buildings structure has been designed for this activity . Space is needed for the courts to be comfortable and spacious With any building some renovations to facilities and structure should be considered positively .
What are the seasonal trends?
The business is busy throughout the year. It is closed over Christmas but hosts New Year's Eve functions every year. Award ceremonies are held during April and July, and are managed by the owner.
Is the business VAT Registered?
to be discussed
What VAT documentation is on file?
to be discussed
Are there up-to-date Management Accounts available?
Yes. The business operates on a excel spreadsheet designed by the owner, which records income generated from daily matches, leagues, tournaments as well as income generated by the bar.
What Balance Sheet and Income Statements are available?
Pending February 2017.
What percentage of the business is cash/credit?
80% is cash and 20% card transactions.
What is the age analysis of the debtors book?
There is one reputable corporate debtor.
How could the profitability of the business be improved?
There is an opportunity for a kiosk providing chips, chocolates, ice-cream and the like within the premises, additional forms of entertainment, such as V-Slots and live music.
Is Seller finance available and for what amount?
Who is the bookkeeper/Accountant?
What is the total staff complement?
4 staff members.
Give a breakdown of staff/ functions/ length of service?
2 Barmen - Earning R700 per week each plus tips 1 cleaner - during the day earning R830 per week. 1 cleaner - evening cleaner earning R700 per week.
Do any receive special perks or incentives?
Incentive bonus paid at the discretion of management.
Are they on contract?
How involved is the Owner in running the business?
Owner is fully involved in the business. He manages all the financial matters, supervision of staff, marketing and management of the venue, procurement of all necessary trophies, sports equipment and securing tournament bids. Even though the current owner is fully involved, this business can be manager operated.
When does the current lease end?
The property is owned by the current business owner. The option to purchase the property is available which can only benefit the buyer. A further asset to the business. A recent property valuation has been prepared on the property . March 2018 Currently the buyer can rent the property from the seller with first option to purchase.
Is there an option of renewal & what period?
To be discussed with the Seller/Landlord
What is the annual escalation %?
To be discussed with the Seller/Landlord
What are the trading hours?
Monday to Saturdays from 17:30 to 22:00 for the sporting activities and the bar operates until midnight or when the last client leaves. Sundays are closed unless by special arrangement only between 12 noon to 14h00.
What is the square meters of the business?
The ERF size is 1998m2, the building itself occupies 1600m2 and the parking is 4457m2. Total squares is 8055m2
Who is the Owner/Landlord?
The property is owned by the Seller.
Do you require a licence?
The business operates with a full liquor license from 10am to midnight. SAMRO (music license) annual fee. DSTV Subscription fees.
What lease deposit and/or other surety is required?
to be discussed with Landlord/ Seller
What are the main assets of the business?
We have a full asset register on file.
Are any items not included in the sale?
Any items of sentimental value to the owner will be excluded.
What is their overall condition?
All assets are in a satisfactory condition.
Do any require repairing?
Fridges and fryers require regular maintenance, in order to keep the business operational. The courts also need to be regularly maintained.
How have they been valued ?
Insurance and owner valued.
Which assets are on lease/HP and with whom?
There are no HP agreements.
Are they presently insured?
Mutual and Federal.
1.Highly profitable business. 2.This is a unique sporting and recreation facility. 3.Safe and secure. 4.Attracts a diversity of sports men and women. 5.Fully licensed function venue. 6.FREE WI-FI
1. One main opportunity identified is making room for a Sport treatment practitioner on premises. 2. Introduce different types of sporting activities. 3. A kiosk providing chips, chocolates, ice-cream and the like within the premises would also provide a good opportunity for additional income during events. 4. Additional forms of entertainment such as V-Slots and live music.
What is the reason for the sale?
The owner is pursuing other business ventures.
Why is this a good business?
Sporting activity which contributes to health and social happiness .
What is the price plus stock and the net profit?
R2.3 million for the Business as a going concern including business assets Business Assets value : R1 million Stock to be determined on handover day - this will include dry stock & Liquor on hand Property optional and available to purchase at an agreed offer presented to the Broker & accepted by the Seller
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