Fully describe the business's activities?
This is a well known National Franchise that deals with the retail of printing cartridges in original, compatable and refill ranges. The compatable range is supplied by the franchisor, whilst the originals can be purchased from a variety of other suppliers. Refilling of cartridges is carried out by the staff at the shop.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The shop deals with regular customers who bring in "used" cartridges for refilling, or for purchasing of original new cartridges.The compatables are also retailed from the shop. Deliveries are carried out by the owner to local clients, within the Upper Highway area.
How are the clients attracted to the business?
Word of mouth referrals is the main source of developing new clients, and there is limited advertising placed in the local press. The website generates new clients, as well as the use of social media (which is growing every month.)
What Advertising/Marketing is carried out?
Facebook has recently become the preferred advertising strategy and it is growing every month by contacts being made with new clients.
Does the business have any contract work?
No, but there are a few new SMME outlets that are starting to order on a regular basis, which is encouraging.
What competition exists?
There are a few other suppliers of ink cartridges, but only carry a smaller stock holding, and do not have the same high esteem reputation, as this Franchise outlet has.
What are the seasonal trends?
The business has no real seasonal trends although there is a slight escalation at the start of school terms.
Is the business VAT Registered?
What VAT documentation is on file?
All documentation is with the owner and the accountant.
Are there up-to-date Management Accounts available?
There is a pastel POS system that can generate management accounts for serious and qualified buyers.
What Balance Sheet and Income Statements are available?
February 2017 AFS s' are with the owner.
What percentage of the business is cash/credit?
75% credit card and 25% cash transactions are the norm. Occasional EFT terms are structured for well known and regular clients.
What is the age analysis of the debtors book?
Nil as there are no accounts with corporate or commercial clients.
How could the profitability of the business be improved?
Business can be developed by marketing to the many new businesses that are being established in the Upper Highway area. New shopping malls and new outlets are "mushrooming" in the area, which offer an opportunity.
Is Seller finance available and for what amount?
What is the payback period?
What is the ROI?
Who is the bookkeeper/Accountant?
Team Tax and Accounting
What is the total staff complement?
The owner plus one assistant
Give a breakdown of staff/ functions/ length of service?
The assistant has just started as the previous lady relocated.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
The assistant manages the shop when the owner is out marketing, or is away.
How involved is the Owner in running the business?
The owner is in the shop every day to ensure that transactions are being handled correctly and she banks all the cash sales.
When does the current lease end?
Is there an option of renewal & what period?
Yes The lease is on a 1 year term with a 1 year option.
What is the annual escalation %?
What are the trading hours?
Shop opens at 0900 hrs and closes at 1700 hrs Monday to Friday and closes at 1230 hrs on a Saturday.
What is the square meters of the business?
25 square meters
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
The franchisor will need to meet with and interview a potential new owner. Franchise agreement is in place.
What lease deposit and/or other surety is required?
I month's rent depsoit is required
What are the main assets of the business?
There is an asset list on file. The current owner has recently renovated the shop and created a fresh ambience in the outlet. All asets are free standing and are in good working order.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
By the owner and the landlord
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The outlet is in a very popular "village" with food/craft and entertainment outlets that attracts a large number of clients to the market.There are regular clients who have supported this outlet for many years and continue to refer their friends and business clients to the shop. Staff are well trained and offer quality service to all customers.
No real weakness as the business has grown this year to 3 x the previous year's turnover and profitability.
The area is "mushrooming" and offers new opportunities in the expansion that is taking place.
What is the reason for the sale?
The owner wishes to take up a new challenge.
Why is this a good business?
Well situated in a unique "village" that attracts many visitors. Regular clients support the small business enterprises.
What is the price plus stock and the net profit?
Selling Price is R400000 with a stock holding of R65000. The net profit is approximately R250000 p.a.
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