How long has the business been established?
The business is a 22 year long established Laundromat.
How long has the owner had the business?
The current owners have had the business for the past 10 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, guest houses hospitals, restaurants, student scholars and the private public. The business has visible premises in an open air shopping complex. The business offers the service of collect and drops off of laundry to some 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 also caters for self service to the private sector whereby they bring in their own laundry wash and dry. Client s may also just make use of standalone services like, wash, only, dry only and iron only. 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 no written signed supply contracts in place but has the continuous loyal support from its existing client base .The business trades under a CC currently .There is no bad debts and no creditor claims.
Is the business VAT Registered?
Yes, the business is not VAT registered.
Are there up-to-date Management Accounts available?
The seller has supplied management accounts for the past 3 years.
How could the profitability of the business be improved?
The businesses biggest client, a guest lodge has by occupation demand begun adding additional rooms onto its current infrastructure, this once completed will increase its occupancy and volumes of linin will increase for the business. There is no advertising and marketing carried out and this will be highly beneficial to enlighten newcomers to the town of the whereabouts of the business and 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 business can also trade on Sundays as an option.
What is the total staff complement?
The staff compliment is 9 permanent and 1 casual who works 3 mornings a week doing deliveries .Staff salaries run between R 2 340 and R 3 200. The service periods range between 2005, 2012, 2014, 2016, and 2017.
When does the current lease end?
The current lease ends in November 2018.The landlord is willing to discuss a renewal. 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 and the business has pay as you go electricity and water.
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 closes its doors to the public and businesses at this time but runs a night shift.
What are the main assets of the business?
The main operational assets of the business are the roller irons, the 3x 25kg industrial and 7 kg washing machines, the 2x 25kg and 6x 7kg dryers tumble dryers, the vehicle, a 1995 Nissan 1 ton bakkies and the loose irons, tables, shelves and laundry baskets. The assets are all in a working condition with the exception of the 2 air conditioners. In most instances between lessee and lessor, the fixed assets such as air conditioners if put in by the business owner, they will revert to the landlord unless otherwise agreed in the businesses lease agreement. 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 has suffered a recent set back by losing a service contract but has massive opportunity with advertising and marketing to get this back and considerably much more business with such attention to advertising and offering promotional specials. The staff are all in place and offer on behalf of the business a good reliable service which is detrimental to the hospitality clients the business has. 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 the one wanting to retire as they are elderly and the other being a considerable distance away and not being active in the business. This is also one of the reasons they have not been too intent or focused on increasing their client base and sales. It is imperative that a potential buyer understands that this is a business which requires hands on and attention to detail when dealing with the hospitality industry .Laundry is a service which will always be in demand
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