Fully describe the business's activities?
Sales and repairs of lawn mowers, ride on mowers, chain saws, generators and water pumps. 3 agencies represented.
How long has the business been established?
Over 30 years.
How long has the owner had the business?
How does the business operate on a daily basis?
The Owner oversees the General Management functions on a daily basis supported by an very experienced and structured team who have years of experience.
How are the clients attracted to the business?
Much of the business is repeat and word of mouth endorsement is very strong. The highly visible showroom on a busy street. with the latest products such as ride on mowers and new technology, attracts much interest.
Does the business have any contract work?
The business has some set clients whom they work for such as bowling clubs and schools etc, but as is the general situation in this area, contracts are hand shakes and not signed documentation.
What competition exists?
There are a few other similar businesses in the area, but each with its own customer base.
What are the seasonal trends?
The months from August through to May are extremely busy due to the the grass growing season. The months of June and July through to August are more quiet, but the workshop remains busy as many people want their mowers serviced over the quiet period.
Is the business VAT Registered?
What VAT documentation is on file?
Up to date
Are there up-to-date Management Accounts available?
Financials will be made available to a qualified Buyer.
What percentage of the business is cash/credit?
Predominately credit card sales and a small amount of cash.
How could the profitability of the business be improved?
The profitability will automatically improve if the new Owner is hands on and manages the business. The business is currently showing incremental growth. There is an opportunity to review the pricing model and margins.
What is the total staff complement?
7 Staff Members
Give a breakdown of staff/ functions/ length of service?
A structure is in place for the workshop reporting to the workshop manager, and there are sales staff on the desk as well as as a senior stock clerk. Most of the staff have been there for quite a while two senior members with over 6 years service.
Do any receive special perks or incentives?
13th Cheque at Owners discretion.
Are they on contract?
Normal conditions of employment.
Do any have management potential?
Yes, there are promote-able staff on the team.
How involved is the Owner in running the business?
On a daily basis.
When does the current lease end?
Is there an option of renewal & what period?
Yes, a further 3 years or subject to negotiation
What is the annual escalation %?
What are the trading hours?
Monday to Fridays: 08-00 to 5-00pm Saturdays: 08-00 to 1-00pm
Who is the Owner/Landlord?
Details will be made known as and when required.
Is a copy of the lease available?
Do you require a licence?
No. Legal requirements such as ear muffs and hard boots are issued to staff.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Stock is the premium asset of this business. Other items are a large trailer that can carry the ride on mowers, tools and other workshop equipment such as welders. Computer system with an excellent POS software. There is a Nashua CCTV system that allows for off site monitoring, which is on lease and insured by the Owner. Other assets are display stands and signage, display materials etc.
Are any items not included in the sale?
Yes. the Owner has personal affects within the business and a bakkie that may be negotiated. There are other items on the current site that belong to the Owner and may be removed. These will be pointed out to a prospective Buyer.
What is their overall condition?
All assets are in good working order.
Do any require repairing?
How have they been valued ?
Owners second hand value.
Which assets are on lease/HP and with whom?
CCTV System with Nashua. Phones with Nashua. Computer software is with IQ Retail computer center.
Will Seller settle or Buyer to take over?
Buyer to take over CCTV systems lease.
Are copies of agreements available?
Are they presently insured?
Long established with excellent premises in busy street, off road parking and secure environment. Brands represented are good and range comprehensive. Workshop is known for their service levels and skills. The client base includes bowling clubs, schools and golf courses, and is spread over a large geographical region.
The business will benefit from an Owner who enjoys interacting with clients and is is prepared to do more marketing and promotional activity. It will be beneficial to get the website up and running and do more work on social media which is not been done at all currently.
Set up a team and offer "on-site" servicing and repairs which will assist customers very much. Opportunity to increase product range. The current Owner has another product range that the Buyer is welcome to sell and will offer incremental earnings.
There are no known threats that may impact upon this business.
What is the reason for the sale?
The Owner relocated two years ago, and due to a family bereavement the Owner wishes to move back to her home to be close to family.
Why is this a good business?
At time of takeover the business was floundering badly, but with focused attention and remedial action, the business has become viable and is showing good growth. A new Owner who has business acumen and concentrates on the basics of business and enjoys interacting with customers will grow this business from strength to strength by simply doing the basics correctly. The location, street exposure and display are all good indicators for any successful business, and add in the loyal long standing client base and sought after products and services make this a very attractive business. The current Owner has turned this business around and it is now trading above breakeven on a consistent basis.
What is the price plus stock and the net profit?
The Owner is asking for R850,000. Stock is in region of R700,000 and is fully owned by the business. It must be noted that the Owner took over the business is January 2018, and the January 2018 to May 2018 is a growth in turnover of 78% on same period 2017.
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