Fully describe the business's activities?
Retail store offering domestic and commercial security products such as gate motors, garage motors, electric fencing, safes, security lighting, remote controls and personal safety items such as shocker devices and pepper sprays.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
There is a staff structure in place, inclusive of casuals over busy periods and weekends. The Owner handles the General Management responsibility.
How are the clients attracted to the business?
Long established as destination stores. Flyers, business cards and brochures. Marketing initiatives undertaken by the mall.
What Advertising/Marketing is carried out?
Mall marketing predominately.
Does the business have any contract work?
The business has no written contract agreements in place, but businesses of this nature tend to have regular clientele who rely upon the stores for their general security requirements and the store staff for security advice.
What competition exists?
There are competitive products offered by some other stores, but not the full range under one roof.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes, as required
What percentage of the business is cash/credit?
Approximately 30% credit card sales.
How could the profitability of the business be improved?
The opportunity to develop the category of Hi-Tech electronic CCTV systems such as Android, Wi-Fi and electronic cameras exists. More emphasis on social media advertising. Opportunity to implement the businesses own installation teams.
Who is the bookkeeper/Accountant?
To Be Advised
What is the total staff complement?
7 including Owner.
Give a breakdown of staff/ functions/ length of service?
Owner 18 years experience. 1 assistant over 10 years. 1 assistant 5 years. Remainder over 1 year.
Do any receive special perks or incentives?
Staff enjoy an incentive on all leads that are generated and successfully completed. Christmas bonus' are paid at Owners discretion.
Are they on contract?
Normal conditions of employment.
How involved is the Owner in running the business?
On a daily basis in a General Management role.
When does the current lease end?
Northern Suburb store ends September 2019....renewable 3 or 5 years. Southern Suburbs store ends November 2018....renewable 3 or 5 years.
Is there an option of renewal & what period?
Yes, 3 or 5 years
What are the trading hours?
Normal Mall hours Late trading over Christmas period
What is the square meters of the business?
The one store is an upmarket Mall makes use of a small kiosk or "Footprint" as it is termed...approximately 12 square meters. The other store is 29 square meters. Retail outlets of this nature do not require large display areas.
Who is the Owner/Landlord?
Metropolitan Life Old Mutual Properties
Is a copy of the lease available?
Yes, as and when required
Do you require a licence?
No, no licenses are required.
What are the main assets of the business?
Shop Fittings and store signage. Electronic Equipment and key cutting machines. Point of sales and computer systems.
Are any items not included in the sale?
There is one computer that remains the property of the Seller.
What is their overall condition?
The assets are in good condition and no repairs are necessary at this stage.
How have they been valued ?
Owners second hand value.
Are they presently insured?
These stores remain interesting and informative as they are used by suppliers to promote new technology such as cell phone and lap-top viewing of security camera systems and warning systems. A "Toys-for-Boys" type of store with a high Male following especially with new technological products and knives, two-way radios etc. The profile of customers ranges from farm security issues to domestic homes and smaller dwellings all looking for security needs. Business security requirements are also a part of the profile. Well established Security Stores, one 16 years and one 7 years. Many suppliers offer consignment stock which assists with cash flow. A destination store, where customers go for security advise and solutions.
Customers often cannot afford the security systems that they truly require.
This is the same with online shopping which will give the stores incremental sales with low cost requirements. The new Owner may well like to implement their own security installation teams in the Northern and Southern Suburbs. This will add to the profitability of the business since leads now generated by the stores are handed out to 3rd party installers.
Keeping up with the galloping new technology is necessary in this type of business. The use of 3rd party installers impacts negatively upon the store who endorsed them, and can be detrimental to customer service quite often, when work is not completed to required standard.
What is the reason for the sale?
After almost 18 years in the business, the Owners feel that they need to move on and hand over to a younger person. The Owners son was being groomed to take over the business at this stage, but has subsequently accepted an overseas offer that is extremely lucrative, hence the business being placed on the market.
Why is this a good business?
This business offers a younger person excellent opportunities in learning and further developing the security offers that are available. It has two long established and profitable outlets in key malls in Southern and Northern Suburbs of Cape Town and has, after trading for so many years, a loyal customer base in both outlets, Southern and Northern suburbs. A new Owner will be able to bring in new technology and possibly an installation team and this will boost store sales and profitability. This is an exceptional business opportunity for a dynamic person looking to grow the business.
What is the price plus stock and the net profit?
The price is R1,900,000. Average stock holding is around R280,000. Net profit in region of R580K per annum.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million