Fully describe the business's activities?
Laundry, offering wash, dry and iron. Dry Cleaning which is outsourced. Shoe repairs and Tailoring is done on the premises.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Either the owner or the one senior staff member opens the business. Clients come in to drop of laundry, dry cleaning or to have shoe repairs and tailoring done.
How are the clients attracted to the business?
The business is well known and repeat business.
What Advertising/Marketing is carried out?
The owner is doing no advertising at the moment.
Does the business have any contract work?
No, the clients are private individuals. There is an opportunity for a new owner to market restaurants, guest houses and other corporate clients in the area to do the laundry.
What competition exists?
The closest dry cleaner is 10 km away.
What are the seasonal trends?
December, January and winter months are busier. However, looking at the trends the business has steady turnover throughout the year.
Is the business VAT Registered?
No, the business is not VAT registered. Therefore a non VAT MOA should be used for a sale.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Monthly management accounts are available, dating back to 2014. Latest figures on file for the month ended June 2018. The owner keeps accurate records with daily figures which is consolidated in a monthly report.
What Balance Sheet and Income Statements are available?
no balance sheets are available
Give a breakdown of staff/ functions/ length of service?
The one staff member has been with the owner since inception, 3 years ago. She earns a salary of R3,000 pm and is able to run the shop in the absence of the owner. The other staff member is a temp and is earning
Do any receive special perks or incentives?
no perks are paid.
Are they on contract?
The one staff member is on a contract and the temp is not on contract.
Do any have management potential?
The one staff member can do shoe repairs, tailoring and all the operational duties and is able to run the business in the absence of the owner.
How involved is the Owner in running the business?
The owner is fully involved in the business as it is a cash business and pop in once a day to do the cash up and banking.
When does the current lease end?
The 3 year lease has expired and the owner is on good standing with the landlord and is currently on a month to month basis.
Is there an option of renewal & what period?
A new 3 year lease will be negotiated with the landlord.
What is the annual escalation %?
What are the trading hours?
Monday to Friday 7am to 6pm Saturday and Sunday 8am to 5pm
What is the square meters of the business?
+/- 65 m2
Who is the Owner/Landlord?
Kollana Properties cc
Is a copy of the lease available?
The lease will be made available during due dilligence.
Do you require a licence?
No license is required.
What lease deposit and/or other surety is required?
2 months rental +/- R30,000 to be negotiated with the landlord.
What are the main assets of the business?
7 Speed Queen Machines, and other machines and shopfitting.
Are any items not included in the sale?
All assets as seen on the asset list are included in the sale.
What is their overall condition?
The assets are in good condition. The owner service the machines himself.
Do any require repairing?
General maintenance is done by the owner.
How have they been valued ?
The replacement value is +/- R350,000 but the owner said the depreciated value is a minimum of R200,000.
Which assets are on lease/HP and with whom?
All 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 and the cost thereof including the telephone and other small operational cost are all included under cost of sales as indicated on the financial report.
The business has been in operation for more than 5 years. Easy to manage. Repeat clients. Steady turnover month by month for the past 3 years (the owner has comprehensive accurate daily record since 2014)
Long hours, 7 days a week. Owner alternate with the staff member over weekends and they make turns during the week to open and close.
Marketing Pamflets Buy a dry cleaning machine which will increase the gross profit. They are currently outsourcing the dry cleaning.
No threats are identified.
What is the reason for the sale?
The owner is getting married and wish to return to his country.
Why is this a good business?
Well established business. Very steady turnover.
What is the price plus stock and the net profit?
Price is R550,000 with an average monthly profit of R33,300.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million