Fully describe the business's activities?
The business specializes in the custom manufacturing of picture frames to suit customers' requirements. The owner and one employee are responsible for the specific design and manufacture of the frames. Customers includes private walk-ins, the bulk of the customers however are from the surrounding mining houses and local schools. The retail section of the business features various arts and crafts. Current trading location inside/part of a lifestyle restaurant complex.
How long has the business been established?
Started in 1988, 30 years.
How long has the owner had the business?
How does the business operate on a daily basis?
Staff responsible for opening and closing of shop, owner work in the mornings. Framing manufacture proceeds in the workshop as per customer orders, owner responsible for ordering of material and marketing of the business.
How are the clients attracted to the business?
By word of mouth and established relationships with existing private and corporate customers.
What Advertising/Marketing is carried out?
local print media on occasion.
Does the business have any contract work?
Yes, with some of the local mining houses.
What competition exists?
What are the seasonal trends?
Busier from October - December (Year end functions).
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes, on request.
What Balance Sheet and Income Statements are available?
2016 and 2017.
What percentage of the business is cash/credit?
What is the age analysis of the debtors book?
30 - 60 Days.
How could the profitability of the business be improved?
By introducing the printing and processing of photo's (print from mobile phones). Targeting the local municipality, police stations and hospitals in the greater area.
Is Seller finance available and for what amount?
Wiling to negotiate deposit of 70% .
Who is the bookkeeper/Accountant?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1 x Framer since 2014. Owner who runs the business.
Do any receive special perks or incentives?
Bonus in Decembers.
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
Daily owner involvement.
When does the current lease end?
February of each year. New lease with new owner will be negotiated on the same terms as the existing lease.
Is there an option of renewal & what period?
Yes, one year renewals.
What is the annual escalation %?
What are the trading hours?
08h00 - 16h00
What is the square meters of the business?
180 meters squared.
Who is the Owner/Landlord?
Is a copy of the lease available?
To be confirmed.
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
Framing stock and special equipment.
Are any items not included in the sale?
Shop fittings, display shelves/boards and office station (counter top) not included (property of landlord).
What is their overall condition?
Fair to good.
How have they been valued ?
Which assets are on lease/HP and with whom?
Company vehicle on HP.
Will Seller settle or Buyer to take over?
Seller to settle.
Are they presently insured?
Long established business with a loyal customer base.
Single specialized / skilled staff member might have a negative impact on capacity for business expansion in future.
Possible marketing to segments not currently served (government agencies). Expanding of the arts and craft section of retail business. Expanding to the processing/printing of digital photo's.
With no local competition and not addressing future opportunities could result in the establishment of a competitor.
What is the reason for the sale?
Owner wants to investigate opportunities in a different sector.
Why is this a good business?
Long established, specialized business with a loyal customer base. Perfect for an entrepreneur willing to explore opportunities up and downstream in the value chain.
What is the price plus stock and the net profit?
R275 000 all included.
Annual Turnover Amount between R 500 thousand and R 6 million