How long has the business been established?
About 10 years
How long has the owner had the business?
How does the business operate on a daily basis?
The Owners manufacture to a model stock holding requirement
How are the clients attracted to the business?
Excellent site at main entrance to a popular Saturday market
What Advertising/Marketing is carried out?
Built up from market exposure and word of mouth
What competition exists?
There is no direct competition at the market venue
What are the seasonal trends?
The market is exceptionally busy over holiday periods. During the year it is well attended by locals as well as holiday makers, this is the demographic nature of the region.
How could the profitability of the business be improved?
The business assets are very under utilised, and that is where the future value lays for this business. Priced at R350,000 for an Established Business that has the ability and possibly demand to increase the size three fold plus. The replacement value of the assets exceeds R200,000. The assets include Sewing Machines, Over-locker, 2 x top quality Embroidery Machines, apart from a fully kitted out trailer and all the display equipment, name boards, hanging racks, tables and chairs, and even a portable change room. Also the site at the market has a gazebo with a netting floor. Also includes three sturdy umbrellas and strong stands that are able to withstand the weather. It takes the Owner about 15 minutes to unpack, set up and exhibit their stock at the market, and same time to break down and pack away. Assets also include a small personal computer with a POS program specifically developed for the product range and use at the point of sale
Who is the bookkeeper/Accountant?
Home based Sole Proprietor business.
What is the total staff complement?
Just the 2 Owners are sufficient to run the current business.
How involved is the Owner in running the business?
The Owners are the business and work to their own requirement and pace.
What is the square meters of the business?
The business is home based, and will require a separate work area of approximately 16 square meters and a store area of approximately 6 square meters.
What are the main assets of the business?
Sewing machine, Over-locker, 2 x embroidery machines. Cutting patters and other intellect such as software currently in use. Completed stock to carry on trading, at a discounted price. Trailer with hanging facility for the stock. Gazebo with floor, full length mirror, portable change room, table, chairs, small computer with full software package. Name boards. 3 Umbrellas with sturdy stands. Small tablet size PC with program to use at market to manage sales Raw materials as included in stock price.
What is their overall condition?
All machinery has been very well maintained and this can be vouched for by a major equipment supplier in this area.
Do any require repairing?
How have they been valued ?
At a very fair value by the Seller, which is significantly less than that of replacement value
Are they presently insured?
Brand name becoming well known Long established with a prime position at a local very well known and popular market place The product range is sought after and the quality is consistently good An ideal business for those wishing to live in the Garden Route and still remain economically active Genuine growth potential which has not been exploited as yet Strong demand for souvenir type products
The main weakness of this business is that since it is solely a Saturday market based retail outlet, the weather plays a decisive factor and the business is seasonal
There are numerous opportunities for this business, the main one being to open up more availability of the product range, rather than just keep it market based. There is an opportunity for a parallel range under a separate brand name, and use this region to sell through retail outlets. More souvenir type products are sought after. The current range of three main product descriptions could easily be further developed with range extensions many of which have been requested, such as children's sized clothing.
There are no obvious threats known of.
What is the reason for the sale?
The Owners are past normal retirement age and have carried on trading until now as they really enjoy the business and the Market environment. Unfortunately they need to plan their future, and are starting to find the business to be demanding They are receiving many more requests for purpose made product and customers wanting to shop during the week, so they are at a point where they should now consider increasing distribution and the product range, however this is not what they wish to do at this point in time Any Buyer of this business is able to increase the sales by increasing retail distribution and also the product offering, and also the offering at the Saturday market The current equipment is under utilised and can certainly meet increased demand
Why is this a good business?
The business has been established for many years and the brand name is becoming more popular with each passing season. There are customers wishing to buy during the week when in the area rather than only at the market, but developing the business further does not interest the current Owners. The Owners receive regular requests for additional products such as a children's range, more men's wear and golf jackets, but at this stage they are not interested in adding more work to their already demanding schedule The Seller undertakes to ensure a comprehensive handover and will introduce the Buyer to the suppliers, and will train the new Owners fully on all of the nuances of the business.
What is the price plus stock and the net profit?
Price is R350,000. and the completed saleable stock plus on hand is currently R80K at cost, and raw materials are around R15K at present. The monthly net profit is currently in the region R7+K pm from market proceeds only.
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