Fully describe the business's activities?
Retail outlet selling gifts, decor and deli products for all ages. Known for Christmas decor and gifting.
How long has the business been established?
Two & half years
How does the business operate on a daily basis?
The sales assistant manages and runs the shop on a day-to-day basis. The Owner does all the ordering and merchandising.
How are the clients attracted to the business?
Locally advertised promotions. Social media. Passing and tourist trade.
Does the business have any contract work?
What competition exists?
A few local shops selling similar products.
What are the seasonal trends?
Easter holidays, Christmas holidays and Public holidays are busy periods.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
There are no annual financial statements as the business is a partnership and annual financial statements are not a legal requirement.
What percentage of the business is cash/credit?
100% cash/credit card
How could the profitability of the business be improved?
Keep up to date fashionable retro products in stock.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Sales assistant - works 6 days/week - length of service - 1 year Sales assistant - works 1 day/week - length of service - less than 6 months
Do any receive special perks or incentives?
Discount on products
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
Checks on the shop during the week and spends a few hours in the shop on weekends and holidays.
When does the current lease end?
31st May 2019.
Is there an option of renewal & what period?
Yes, one year.
What is the annual escalation %?
What are the trading hours?
Mondays to Fridays 8.30am - 4.30pm. Weekends 9am - 4.30pm.
What is the square meters of the business?
42 sq mts
Is a copy of the lease available?
Do you require a licence?
What are the main assets of the business?
Display cabinets, tables and shelving
Are any items not included in the sale?
A couple of display cabinets that will be pointed out to the Buyer.
What is their overall condition?
Do any require repairing?
How have they been valued ?
By the Owner
Which assets are on lease/HP and with whom?
Are they presently insured?
Well located in a popular centre in the KZN Midlands. The variety of retro products and deli items.
The Owner spends very little time in the business.
Increase the variety of products. By spending more time in the shop the Owner could increase sales and profits.
What is the reason for the sale?
Break up in partnership.
Why is this a good business?
Simple to manage and run business. Good local interest in the shop's products. Huge passing holiday trade. Owner can establish own footprint/fashion
What is the price plus stock and the net profit?
Price is R110,000 plus stock of R140,000 = R250,000. Profit R10,000 per month.
Annual Turnover Amount between R 500 thousand and R 6 million