Fully describe the business's activities?
Is a retail jewellery store (non-manufacturing) in a busy mall. Sells gold & silver jewellery, rings, branded watches, pendants, lockets etc They also provide a repairs and spares services for their products.
How long has the business been established?
How long has the owner had the business?
The current owners have owned since inception - 1986
How does the business operate on a daily basis?
Clients either walk in or phone in for specials/discounts which have been offered on their Facebook page.
How are the clients attracted to the business?
Generally by word of mouth or referrals. The Mall does it's own advertising, where periodically the store is featured. The store has it's own active Facebook page.
What Advertising/Marketing is carried out?
Some is done by the Mall itself, otherwise direct marketing I done via their Sellers' Facebook page. No other printed advertising is undertaken.
What competition exists?
Various jewellery stores in the Mall and town co-exist. Certain specific range of watches/jewellery are only carried by this store in town, as has exclusive arrangements with those Suppliers...
What are the seasonal trends?
The peak month is definitely December, however Jan/Feb are also fairly good months due to Holiday/Valentines Day.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT records are on file
Are there up-to-date Management Accounts available?
Yes to April 2018
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
99% is Cash (cash/card)
How could the profitability of the business be improved?
By expanding the current range of products offered. The possibility of bringing in a qualified goldsmith, to begin manufacturing of custom made gold/silver jewellery is an opportunity,
What is the total staff complement?
3 (Including the Owner)
Give a breakdown of staff/ functions/ length of service?
All staff members have been there for over 5 years and are well acquainted with the Store and it's products.
Do any receive special perks or incentives?
Specified commissions on sale of certain products (excl. discounted sale items).
Are they on contract?
Yes, all are permanently employed with contracts.
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
31 October 2018.
Is there an option of renewal & what period?
Option to renew for further period of up to three years. Current negotiations are underway with the landlord t extend the Lease by another 12 months.
What is the annual escalation %?
What are the trading hours?
Mon - Fri : 9am - 6pm / Sat : 9am - 2pm / Sun + public holidays : 9am - 1pm
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
No licence required
What lease deposit and/or other surety is required?
Lease deposit is in the form of a bank guarantee.
What are the main assets of the business?
Shopfront Signage / Numerous Jewellery display boxes + cabinets / Computer equipment + software / Safe
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
None require repairing
How have they been valued ?
Market depreciated value
Are they presently insured?
All Assets are insured with a reputable insurer
Very well established retail store - been around since 1986 in different malls to capture best target audience. Other jewellery stores have opened next to the store and closed over the years. Good branded watch ranges which appeal to the younger corporate buyers.
Jewellery range is probably a bit limited due to non manufacturing on-site.
To bring in a qualified goldsmith to manufacture custom made jewellery on site. This would entail possibly seeking larger premises due to space required for workshop.
Other similar national jewellery stores opening up in the vicinity thereof.
What is the reason for the sale?
Owner is reaching retirement age ad wishes to retire from the industry.
Why is this a good business?
Been around for over 30 years - Stood the test of Time!! Well known for delivering good quality products with efficient backup service...
What is the price plus stock and the net profit?
Selling price = R 1.55m (Including stock of R 1.3m) Net Profit = R 393k per annum
Annual Turnover Amount between R 500 thousand and R 6 million