Fully describe the business's activities?
The shop sells second hand books, some as good as new at a fraction of the price. A monthly average of 646 clients buy books from this store.
How long has the business been established?
The business was started 9 years ago.
How long has the owner had the business?
The owner started the business.
How does the business operate on a daily basis?
Clients come in to buy books. Others donate books or bring books in where they get credit to buy other books. Credit of 40% of the gross selling price of the books are given to a client where they can utilize their credit to buy other books. The shop keeps accurate records of all their clients.
How are the clients attracted to the business?
The shop has regular clients. For the last 12 months the shop had 7.752 clients who came in to buy books, which is an average of 21 clients per day.
What Advertising/Marketing is carried out?
The shop distribute pamphlets at robots.
Does the business have any contract work?
The shop has a regular client base which was built up over the years.
What competition exists?
This is the largest second hand book shop. Due to the growth and large number of books the owner opened a second book shop which he might also sell.
What are the seasonal trends?
School holidays are busier, especially the period November to January.
Is the business VAT Registered?
The business is not VAT registered.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
There are management accounts for the period November 2016 to October 2017 on file, with daily and monthly figures.
What Balance Sheet and Income Statements are available?
No balance sheet and income statements are available. This is a sole proprietorship and the shop keeps accurate records.
What percentage of the business is cash/credit?
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
A hands on owner who wishes to run the business.
Is Seller finance available and for what amount?
The seller wish to sell the business at the asking price to enable him to concentrate on his charity business.
Who is the bookkeeper/Accountant?
to be discussed
What is the total staff complement?
A full time manager is in the store. The owner makes use of a casual worker to assist in this shop and also his other business.
Give a breakdown of staff/ functions/ length of service?
The manager has been with the business for 6 years. The casual worker assist from time to time in the shop and also at the owners other businesses.
Do any receive special perks or incentives?
The staff does not receive special perks or incentives.
Are they on contract?
The staff are only on temporary contracts.
Do any have management potential?
The manager is running the shop on his own.
How involved is the Owner in running the business?
The owner has another bookshop and also a charity organisation which takes up most of his time.
When does the current lease end?
The owner has been letting the shop for the past 9 years and no formal lease agreement is signed.
Is there an option of renewal & what period?
A new owner may negotiate a lease up to 5 years with the landlord.
What is the annual escalation %?
The business pays a flat R8,500 per month which includes water and electricity.
What are the trading hours?
Monday to Friday 9am to 5pm Saturday and Sunday 9am to 3pm
What is the square meters of the business?
60m2 with an outside area for a tent to sell specials. There is also ample parking for clients.
Who is the Owner/Landlord?
To be discussed.
Is a copy of the lease available?
Do you require a licence?
No licence is required.
What lease deposit and/or other surety is required?
To be negotiated.
What are the main assets of the business?
Furniture and shelving.
Are any items not included in the sale?
All assets as seen in the business are included in the sale.
What is their overall condition?
The assets are in good condition.
Do any require repairing?
No repairing needed.
How have they been valued ?
The owner valued the replacement of shelving and furniture at a minimum of R60,000
Which assets are on lease/HP and with whom?
The assets are unencumbered.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The business is insured.
Longstanding customer base. Unique concept which no other bookshop has. Volume selling
More owner involvement needed
WIth the increase growth and stock a new owner could open a new bookshop every year.
No threats are identified.
What is the reason for the sale?
The owner has other business interest which needs his full attention.
Why is this a good business?
The business has been established for 9 years with longstanding clients and growth. Easy to manage and good cash income.
What is the price plus stock and the net profit?
R880,000 which includes stock of R312,500. Average net profit of +/-R30,000 per month.
Annual Turnover Amount between R 500 thousand and R 6 million