Fully describe the business's activities?
The business is a 9 year established Laundromat.
How long has the owner had the business?
The current owners have had the business since 2009 years.
How does the business operate on a daily basis?
The business operates on a daily basis by supplying the services of cleaning of laundry / washing, dry and ironing laundry for hotels, lodges and hospitals. The business has premises with no visibility to the general public. The business offers the service of collect and drops off of laundry to its clients. The business has been operational for many years and has an established ongoing client base. The businesses staff is well trained and provides an efficient wash and iron service to its clients. The business has 5 major big clients. The business due to its long establishment does not advertise and is reliant on word of mouth referral and its current client base .The business has 1 written signed supply contracts in place but has the others continuous loyal support from this existing client base .The business trades under a CC currently .There are no bad debts and no creditor claims as the seller has been selective to whom she offers the businesses service to.
Is the business VAT Registered?
Yes, the business is not VAT registered.
What Balance Sheet and Income Statements are available?
The seller has supplied financial stamens for 2018.
How could the profitability of the business be improved?
The businesses biggest clients are hotels and hospitals and it could benefit from attracting other market sectors requiring launderette services such as guest houses, lodges, schools, sports clubs and old age homes There is no advertising and marketing carried out and this will be highly beneficial to enlighten the local community of the whereabouts of the business and of its services it offers. The area in which the business is located has over 300 guest houses which lends opportunity to market the businesses services to. The owner has elected to keep her focus on the bigger clients so there is room for extra earning potential.
What is the total staff complement?
The staff compliment is 10 permanent. Comprising driver, intake collect and drop off operators and supervisors. The staff is well trained launderette operators who are skilled within the industry. The owner is not active on a daily basis in the business.
When does the current lease end?
The current lease is on a month to month. The landlord is willing to discuss an option of lease. The landlord requires 2 months rental as a deposit and the first months rental is payable upfront. There is 3 phase electricity on the premises.
What are the trading hours?
The trading hours are Monday to Friday 07:00 to 17:00 and Saturday 07:00 to 13:00 and is closed on Sundays. The business runs a night shift.
What are the main assets of the business?
The main operational assets of the business are the roller irons, the industrial washing machines, tumble dryers, a 2012 Quantum panel van, loose irons, tables, shelves and laundry bins. The assets are all in a working condition .There is one washing machine that requires repairs but is not one which is in daily use. All the assets are fully paid for and are the unencumbered property of the seller and are included in the sale and purchase price of the seller .The assets have been value at a second hand replacement value.
Overview of the business.
The business is a long reputable laundry service provider and has a historically good service track record. The business could benefit from attracting various other sectors of the available market and not just focusing on the larger hospitality clients. The staff are all in place and offer on behalf of the business a good reliable service which is detrimental to the industry wherein it operates There are several competitors within the same industry but each is just as busy as the next as there is massive demand for laundry services in the area with several new colleges and dormitories opening to accommodate the students who will need the services the business has to offer. The sellers are selling due to her vested interest in other businesses she has. By applying good basic advertising and marketing principals it will have an immediate positive influence as on the business as the business has the infrastructure and platform and is capable of expanding greatly on its current client base and generating additional income. Despite the sales being good any potential buyer understanding the industry will see this launderette as an opportunity which can be greatly expanded upon. This is a service related industry which wherein there will always be a demand.
Annual Turnover Amount between R 500 thousand and R 6 million