Fully describe the business's activities?
This international franchised tutoring centre offers maths, English & Afrikaans tutoring to grade 0-12 children. Centre trades Tuesday to Sat and with around 130 student lessons. Study skills classes are also offered. Business has been operational for 10 years with franchise being around since 1974. Children are assessed then a specifical plan is developed for each child which results in significant improvements in marks. Tutors do the oversite of tutition as activities are pc driven.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Classes are run from 2-6.30 week days and from 8-1 Saturdays. Closed over December holidays.
How are the clients attracted to the business?
Marketing is done through website, facebook & Google ads. there is occassional franchisor advertising. Close relationships exist with schools in the area who refer children needing help. Phamplet drops are also used.
Does the business have any contract work?
Each child is secured via an agreement. payments made monthly in advance with a months notice.
What competition exists?
There are a few private tutoring centres in the broader area.
What are the seasonal trends?
At the start of the year is when students typically start. The last part of the year prior to exams sees an increase.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
How could the profitability of the business be improved?
More direct marketing to schools in the area. Online tutoring could also be an option.
What is the payback period?
What is the total staff complement?
9 with 7 tutors, receptionist and owner
How involved is the Owner in running the business?
Owner is invloved daily. It is key that the owner is involved.
When does the current lease end?
Business operates from a portion of a house. Premises belong to the previous franchisee.
Is there an option of renewal & what period?
Yes, open for nehotiation
What is the annual escalation %?
What are the trading hours?
M-F 2-6.30 Sat 8-1
What are the main assets of the business?
Pc work stations, computers, desks, chairs office equipment, filling cabnets etc.
What is their overall condition?
Are they presently insured?
Position- located opposite a school which makes for easy access. there are other schools close by, global franchise, well established.
Owners have other focuses
Online teaching, direct approach to more schools and build these relationships, there is spare capacity
What is the reason for the sale?
Owners want to focus on other business interests
Why is this a good business?
Great business in sector that is always in demand.
What is the price plus stock and the net profit?
R1,450,000 all in
Annual Turnover Amount between R 500 thousand and R 6 million