Fully describe the business's activities?
A liquor store trading the business hours as allowed by the Liquor board. Open at 9am and close at 9pm Monay to Saterdays. Sundays close at 4pm.
How long has the business been established?
The business was started in 2016 and is still growing from month to month.
How long has the owner had the business?
The owner started the business in June 2016
How does the business operate on a daily basis?
Open 9am . Do stock taking of fast moving items, place orders if necessary. Do merchandising and manage the Point of Sale and assist customers.
How are the clients attracted to the business?
This liquor store is situated in a small shopping center in the middle of a large residential area. This liquor store is also a member of the Blue Bottle group ( A mass buying Group) which offers continuous special deals, promotions and distribution of pamphlets.
What Advertising/Marketing is carried out?
A member of the Blue Bottle Group which continually arrange promotions, discount deals and distribute pamphlets in neighborhood.
Does the business have any contract work?
No contact work but preferred supplier to licenced clubs in the area.
What competition exists?
No competition in the immediate area. Local residence have to exit neighborhood to find other liquor stores.
What are the seasonal trends?
Expecting a huge spike in December month over the festive period. Generally, winter months slower sales, higher in summer with peaks over Christmas/New year and Easter Week-ends.
Is the business VAT Registered?
Not yet, but application is pending.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes, up to date management accounts available.
What Balance Sheet and Income Statements are available?
Annual Financial Statements for period ending February 2017. Business was started in July 2016.
What percentage of the business is cash/credit?
Walk-in customers is 100% cash. Clubs 7 days credit.
What is the age analysis of the debtors book?
All debtors paid up.
How could the profitability of the business be improved?
The business is growing on a month to month basis and additional floor space can be made by reducing the storage and office space.
Is Seller finance available and for what amount?
What is the payback period?
36 months payback period.
What is the ROI?
At this moment 28% , but at the present growth rate this return percentage will increase dramatically.
Who is the bookkeeper/Accountant?
What is the total staff complement?
1 staff member who assists the owner with opening, closing, merchandising etc.
Give a breakdown of staff/ functions/ length of service?
She has been with the owner since the start of the business.
Do any receive special perks or incentives?
No special perks or incentives. A review will be done on the expected December trade.
Are they on contract?
She is on a permanent contract.
Do any have management potential?
She has excellent managerial skills and manages well on her own.
How involved is the Owner in running the business?
The owner is 50% involved.
When does the current lease end?
At present the Lease is a year to year lease but a longer period can be negotiated with the landlord.
Is there an option of renewal & what period?
Yes, an option to renew for one year.
What is the annual escalation %?
To be negotiated with the Landlord.
What are the trading hours?
From 9am to 9pm Monday to Saterday. Sundays 9am to 4pm
What is the square meters of the business?
To be advised.
Who is the Owner/Landlord?
Sidewell Investments CC
Is a copy of the lease available?
Yes, a copy of the Lease is available.
Do you require a licence?
You require a Liquor licence. The present licence is registered in the name of the (Pty) Ltd, but if the buyer wishes to buy the business as a going concern and use a different entity, he may use the existing license until transferred to his name/entity.
What lease deposit and/or other surety is required?
One months rental deposit required.
What are the main assets of the business?
The main Assets of the business is Stock, equpment (shelving, counters and coldroom) and electronic equipment (CCTV cameras, Point of Sale, computers)
Are any items not included in the sale?
All items on the list are included in the sale.
What is their overall condition?
Everything ( Except the Vehicle) was purchased new and in excellent working condition.
Do any require repairing?
No repairs required at this stage.
How have they been valued ?
Have been valued at replacement value.
Which assets are on lease/HP and with whom?
The motor vehicle is still on HP
What are their settlement amounts?
Approximately R 140 000
Will Seller settle or Buyer to take over?
Seller will settle.
Are copies of agreements available?
Yes, a copy is available.
A proper due diligence was done to justify the opening of a Liquor store in this area! It's well situated in a residential area with no other competitive liquor store nearby. The Sales of this liquor store is growing from month to month and the potential of expanding is huge.
VERY limited competition from other liquor stores. Long working hours especially during festive seasons.
Great opportunity for growth in this business. No immediate competitors and no other business sites within nearby distance.
The business is properly zoned and compliant with all licenses required. The business does not expose any health and safety risks to the neighborhood. Thus no immediate threats to the business.
What is the reason for the sale?
The current owner is pursuing business interest in Gauteng.
Why is this a good business?
Profitable , well located and excellent growth potential.
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