Fully describe the business's activities?
This business specialises in African Art and Curios, game and Nguni skins. Products are sourced from many Sub-Saharan countries as well as from local artists and craftsmen and women. The business is situated in a prime position on the popular R62 tourist route and is recommended by tour guides as a "must do".
How long has the business been established?
The owner started the business in 2004.
How does the business operate on a daily basis?
The owner opens and closes the business daily. He is responsible for purchasing new stock. He and his wife are involved in the shop, assisted by a small team of shop assistants.
How are the clients attracted to the business?
The business is a landmark on the R62 tourist route and is a destination shop for tour groups, particularly those from Europe and the USA. The business offers a shipping service to any destination world-wide which is particularly attractive to the many foreign visitors.
What Advertising/Marketing is carried out?
The business does not advertise or market actively. Customers are encouraged to take photographs of themselves in and around the shop as these inevitably get posted on Facebook. As a result there are very many word-of-mouth referrals. The business also has its own Facebook page and has very high ratings on TripAdvisor.
What competition exists?
There is no competition in the immediate area and the business has a reputation among tour guides of being one of the best of its type in the country - both in terms of the quality of goods and pricing.
What are the seasonal trends?
The summer months are generally busier as European and American tourists visit the area.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation is up to date.
What Balance Sheet and Income Statements are available?
An independent accountant prepares financial statements every six months and annual financial statements at February of each year.
What percentage of the business is cash/credit?
The business is entirely cash and credit card.
Is Seller finance available and for what amount?
What is the total staff complement?
Owner and his wife plus 3 shop assistants.
Are they on contract?
As per normal labour law regulations.
How involved is the Owner in running the business?
The owner is involved on a full time basis.
When does the current lease end?
The property belongs to the business owner. He will negotiate a market related rental agreement with a buyer. The premises include a three bedroom flat which could be suitable for a new owner to live in. A rental charge for the accommodation has been included in the rental expense, but this is open to negotiation.
What are the trading hours?
Monday to Saturday, 09h00 to 17h00.
What is the square meters of the business?
289sqm of retail space. 124sqm of residential space.
Do you require a licence?
General trading licence.
What lease deposit and/or other surety is required?
To be negotiated.
What are the main assets of the business?
Retail display equipment.
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owner's fair market valuation.
Landmark destination on one of the most popular tourist routes in the country. Reputation among local tour guides and tour operators. Word-of-mouth referral among international tourists.
No active marketing.
Open on Sundays. Develop a marketing plan.
What is the reason for the sale?
The owner wishes to retire. He is willing to stay on in an unpaid position for up to six months to assist a new owner with the day to day operations and in particular the sourcing of products.
What is the price plus stock and the net profit?
The business is for sale for R4.8m, inclusive of stock of R1.0m. The business made a net profit of R969 000 in the last year.
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