Fully describe the business's activities?
This business specializes in the installation of High Definition CCTV, Premium ADSL, Domain, Email and Website Hosting, Website Designs , IT Support, Data Back-up and Recovery, Wired and Wi-Fi Network Solutions, Software and Hardware sales, Virus and Spyware Removal.
How long has the business been established?
Established since 2010
How long has the owner had the business?
The owner started the business.
How does the business operate on a daily basis?
4 staff members arrive for work just before 8 am and customer requests are discussed with staff. The team then execute the requests of customers and mostly accompanied by the owner. Email answering and quotes are supplied to customers on an on going basis. Staff can keep in touch with owner telephonically and per watsapp workgroup.
How are the clients attracted to the business?
By means of Website Advertising, Banners, Flyers and Word of Mouth Advertising from satisfied clients. This business is also very active on Social Media ( face Book, Twitter)
Does the business have any contract work?
Web site and email hosting contracts, ADSL, Cloud back-ups and IT Maintenance Contracts with customers.
What competition exists?
Numerous other IT business in the area.
Is the business VAT Registered?
YES, the business is VAT Registered
What VAT documentation is on file?
Each bi-monthly returns as requested by SARS
Are there up-to-date Management Accounts available?
Yes, Management Accounts are available.
What Balance Sheet and Income Statements are available?
Annual Financial Statements for the period ending February 2018
What percentage of the business is cash/credit?
All purchases is done on cash basis. Invoice to customers is payable on presentation.
What is the age analysis of the debtors book?
Strictly 30 days credit. The debtors book is well managed.
How could the profitability of the business be improved?
The profitability of the Business could be improved by displaying at Expos, Shopping Malls and media advertising.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
The owner plus 4 staff members
Give a breakdown of staff/ functions/ length of service?
1 IT Technician 4 years with the business 1 Jr Website developer has been 4 years with the business 1 Cable and CCTV technician has been with business for 1 year. 1 Trainee Cable and CCTV Technician and has been with business for 6 months.
When does the current lease end?
The owners premises is in Newton Park and hs contract is month to month.
What are the trading hours?
The owner and Staff are available Monday to Friday on an 8 am to 5pm basis.
This is a well established and profitable business, with a recurring monthly income from customers. The IT industry is in a developing phase with ever improved products on the market. The expected life span of IT hardware is 3 years which assures future sales and maintenance.
A competitive industry with low set up costs.
An opportunity to enter a well established and profitable business and strong customer base.
The business is compliant in every respect and therefore no threats to the business at present.
What is the reason for the sale?
The owner wishes to exploit other options
Why is this a good business?
This business is profitable and well established with repeat clients. This business is priced to sell!
What is the price plus stock and the net profit?
The asking price for the Business is R 1 200 000 and is generating a profit of R 318 829 for the 12 month period to 28 February 2018. Stock value is low (R 12 000-15 000) as most products are available over night. Certain stock items such as cabling is purchased in bulk.
Annual Turnover Amount between R 500 thousand and R 6 million