Fully describe the business's activities?
The business is a long established garden service business with signed contacts with the bigger clients.
How long has the business been established?
The business has been established since 2006.
How long has the owner had the business?
The current owner has had the business for 4 years.
How does the business operate on a daily basis?
The businesses activities revolve around the maintenance, upkeep of private individuals gardenâs , plots, small holdings and also gardens and lawns on commercial premises, as part of its services the business offers brush cutting on plots and farms as well The business has a long established ongoing client base whose gardens are serviced on a regular basis. The clients contact the business and sign up for either a weekly, fortnightly or monthly garden service with the company. There are various options available, depending on the size of the garden and the density of the shrubbery. There are 2 separate teams of workers comprising of 3 members each. The teams are allocated their respective jobs daily. There are 2 company kia vehicle which are loaded each morning with the staff and equipment and travel to their various jobs for the day . It is the responsibility of the staff to manage and complete the garden within a certain time frame appropriate to the specific of each garden size. Each team is capable of attending to 13 gardens a day . Once they have completed the jobs allocated for the day the jobs are inspected by the owner .The vehicles and staff return to the storage garages .At the storage garages which the owner has rented the , 2 vehicles and tools are stored . The owners keep stock of the spare fuel and equipment at their home and each day the drums holding the fuel are refilled for the next days work and loaded onto the Bakkie. The owners keep the equipment maintained themselves. This maintenance is done every Saturday when the business is not operational. The business has several big clients which it services and from which they generate the most income. They have service contract in place with most of these. The business also has service arrangements with housing estates .
How are the clients attracted to the business?
The clients are attracted to the business by word of mouth. The owner is comfortable with the amount of clients she has and has not marketed the businesses services as she feels the current size it is, is manageable for her .
What Advertising/Marketing is carried out?
There is currently no advertising or marketing currently carried out. The business has the enjoyed benefit of referral of word of mouth. The business markets itself with the viability of its work in progress presence at its clients premises.
Does the business have any contract work?
Yes, the business has written contract work with some of its bigger clients and has continued over the years to enjoy the continuous support of 80% of its bigger clients.
What competition exists?
There are various other same such garden service providers in the surrounding Lowveld area, which have not in the past or currently interfered or had any financial impact or influence on with the business income or client base.
What are the seasonal trends?
The winter months tend to be quieter for the business this is slightly compensated by the fact that the Lowveld enjoys a much warmer winter than its neighbors.
Is the business VAT Registered?
No, the business is not VAT registered.
What VAT documentation is on file?
There is no VAT documentation on file.
Are there up-to-date Management Accounts available?
Yes, there are up to date management accounts available for perusal to a serious buyer.
What Balance Sheet and Income Statements are available?
The current balance sheets and income statements are available independently for the past 7 month due to the reason that previously the business and its operational expenses and income were encumbered in the sellers other (Pty) enterprise and it only now for the past 7 months has been operating in its own CC.
What percentage of the business is cash/credit?
The business trades on a 15% cash basis and 85% account, of which such facility is selectively only available to certain of its long standing clients.
What is the age analysis of the debtors book?
The age analysis on the books of the 85% account clients is between 7 days and maxi mum of 30.
How could the profitability of the business be improved?
The profitability of the business can be improved by expanding the business client base through means of marketing and advertising , adding add on like tree cutting, pool cleaning, roof cleaning, driveway pressure washing and if the new owner is handy then the services of handy man. Target the smaller public residential homes and guest houses more aggressively. The business can also due to having 2x Kia Trucks offer the services of garden rubble removal and furniture removal. It can also trade on Saturdays.
Is Seller finance available and for what amount?
No, seller finance is not available.
What is the total staff complement?
The total staff compliment comprises of 6 people which number excludes the 2 owners.
Give a breakdown of staff/ functions/ length of service?
The staff comprise 2 teams of 3 and they are general all purpose operators who know how to use all the equipment the business has. 3 of the staff have been with the business for 4 years.
Do any receive special perks or incentives?
Yes, the staff receive a 2 Lt cold drink each day and R 400.00 for transport. They are paid R 205, 00 each per day. On a Friday in winter and if they have managed to complete the full weeks roster in 4 days then they have Friday off and it is taken as part of their overall leave days leave. They do not take leave in December, except on religious or public holidays. Their salaries are paid fortnightly.
How involved is the Owner in running the business?
The owner is very involved in the daily running and overall management of the business.
When does the current lease end?
The business has no fixed lease on premises it hires on a monthly basis 2 garage storage units. Ideally if the new owner had a plot or suitable place at their home the business could operate from there and this would alleviate rental expenses.
What are the trading hours?
The trading hours are from Monday to Friday 7:00 to 17:00 and is closed on Saturdays and Sundays unless there is a specific job allocated on a weekend day.
What is the square meters of the business?
The business operates from secure storage facility of approximately 36 square meters.
Is a copy of the lease available?
There is no lease on the current businesses premises as it operates on a monthly arrangement with rental lock up garages in a secure storage facility.
Do you require a licence?
No, there is no license required.
What lease deposit and/or other surety is required?
The business has to pay its rental upfront on the first day of each new month.
What are the main assets of the business?
The main assets of the business are 2 x 2016 KIa Trucks , 1 X Trailer to transport the 42 Zero Turn ride on mover bought in 2015, 1 x hustler 1500, 4 x Husquavarna 153 brush cutter, 1 x Echo hedge trimmer 2 push mowers, loose gardening tools and hand equipment.
Are any items not included in the sale?
No, all the items on the asset register are included in the sale of the business. The seller is willing to let the CC go with the business and will supply a tax clearance certificate.
What is their overall condition?
The overall condition of the assets is very good and they are regularly maintained.
Do any require repairing?
No, there are no assets that currently require repairing.
How have they been valued ?
The assets have been valued at second hand replacement value.
Which assets are on lease/HP and with whom?
There are no assets on leas or H.P all the assets are fully paid for and the unencumbered property of the sellers.
Are they presently insured?
Yes, the assets are insured.
The strength of the business lies in its establishment of delivery of its provision of professional service and existing huge client base. The bulk overheads without expansion are established and levels of income and expenses are in accordance with the production and dictated by performance.
The weakness of the business is its, dependence and reliance on its existing client base and its lack of advertising and marketing.
There is definitely an opportunity to expand the client base and grow the business by marketing the services of the business to domestic dwelling, secure residential complexes and shopping malls and to offer service of attending to the maintenance of companyâs office plants. The possibility of landscaping is also available. The existing working base lends itself to the introduction of additional services, like cleaning services, whilst the workers are at a client they may also wash the clientâs car, boat, caravan, power pressure wash driveways and face brick wall, and clean gutters and roofs. The opportunities are there. The business is well established and has good solid paying client. The owner is selling to help her husband in his business as it is expanding rapidly.
There are no immediate threats.
Why is this a good business?
This is a good business as it presents itself open to expansion and diversifying of its present activities and within its current frame of clients and service.
What is the price plus stock and the net profit?
The price of the business is R900 000 .The business does not operate with a stock holding however any pool chemicals or such which may be deemed as stock that is hand at the time of the takeover will be included in the agreed sale price of the business.
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