Fully describe the business's activities?
Showcasing Advertisers' products and services to hotel guests/tourists in more than 200 hotels/tourist outlets in Gauteng, Western Cape and KZN. This involves the regular replenishing of credit card sized mini brochures and providing some advertisers with reports of card take-up, so they can measure response.
How long has the business been established?
Initially established in 1993
How long has the owner had the business?
How does the business operate on a daily basis?
Agents in each area visit 20 - 25 venues each week and replenish cards, recording how many have been taken. Seller responds on a daily basis to emails and phone calls from new or existing advertisers.
How are the clients attracted to the business?
Either via the website or from the display cases prominently displayed with company name in all the hotels and venues serviced. Agents also bring in new advertisers for which they receive a commission.
What Advertising/Marketing is carried out?
Website and targeted marketing by agents and seller to specific clients for whom we think this service would be beneficial. Numbers are restricted for the same category of service, so there are not more than three service providers for one type of business
Does the business have any contract work?
What competition exists?
Nobody providing this specific service
What are the seasonal trends?
Normal tourist and school holiday peak periods, make demand for replenishment greater, but it does not significantly affect sales.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
Terms are normally 30 days from invoice, but some clients pay up-front for 12 months
What is the age analysis of the debtors book?
Mostly 30 days. A few in 90 days but they always pay (e.g. major corporate clients).
How could the profitability of the business be improved?
Expand the client base now that tourism is once again improving. Buyer could choose to service a geographical location themselves and thus reduce agent replenishment costs.
Is Seller finance available and for what amount?
What is the total staff complement?
No staff, only agents paid as contract workers.
Give a breakdown of staff/ functions/ length of service?
Western Cape agents responsible for new sales and contract renewals and overseas person responsible for replenishing of cards at hotels. Has been with the company for 10 years. KZN agent only replenishes cards at weekends and is otherwise employed. Gauteng agent folds cards and replenishes cards at hotels.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
W.Cape agent but he also has full time job
How involved is the Owner in running the business?
Daily time just to answer emails and phone calls. Two days at month end for invoicing and admin duties. In total, maybe five days a month.
When does the current lease end?
Currently working from home. Space required to store cards for replenishment. Currently using part of garage.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
Flexible during normal business hours
What is the square meters of the business?
Requires spare bedroom, garage or office space to store cards and extra display cases.
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
Wooden display cases located in over 200 locations, plus a number of extra used units in need of refurbishment before re-using.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Work from home. Excellent reputation build up over nearly 20 years with hotels and tourist destinations, advertisers and repeat clients. Regular interaction with hotels by agents replenishing cards, ensures goodwill.
Printed matter may be seen as not Eco friendly, but when tourists are looking for something to do, a small card which fits into the wallet, is better than a folding brochure which will soon be discarded.
Tourism is once again increasing with the weaker rand and the the relaxation of the strict tourist visa requirements. Further marketing in the Gauteng area to increase sales and expnasion in to other areas.
Any threat to tourism can affect the business, but as tourism is seen as a prime growth area, this is unlikely. Complacency and neglecting to control agent performance in relation to replenishment of cards, could diminish the effectiveness of the platform and reslu in loss of advertsisers.
What is the reason for the sale?
Retirement looms and the desire to travel the country before settling in the Cape to be near family.
Why is this a good business?
Well established, easy to operate from home, with flexible hours. Good return on investment and good client base. Most of the routine work is subcontracted out but could be carried out personally in one province, if buyer is located in the right area.
What is the price plus stock and the net profit?
Price is R355,000 and includes all stock of cases and printed cards. Net profit is approximately R21,000k/month but includes some expenses, not necessary to run the business.
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