Fully describe the business's activities?
This is a locksmith business that also specialize in safes, remotes, keybanks and vehicles locks. The business services a wide variety of clients in the residential sector as well as commercial.
How long has the business been established?
The business has been established since 1989.
How long has the owner had the business?
The owner bought the business in 2014.
How does the business operate on a daily basis?
The owner is involved in the business on a daily basis, scheduling call-outs, handling all administrative tasks and general management of the business. One of the staff members can attend to some managerial duties when his not there.
How are the clients attracted to the business?
The business is well known in the area and has been established for almost 30 years. They provide good quality and efficient service therefor get a great deal of return clients.
What Advertising/Marketing is carried out?
The business has a website which and make use of Google Adwords to market his business.
Does the business have any contract work?
The business has a few large clients which he assists on a regular basis which includes property rental companies and other businesses which are longstanding clients with the business.
What competition exists?
There are two other locksmiths in the area. The owner does not see them as competition and they would refer work to each other when needed.
What are the seasonal trends?
None could be perceived.
Is the business VAT Registered?
Yes the business is a VAT -Vendor
What VAT documentation is on file?
All VAT documentation are available from the owner.
What Balance Sheet and Income Statements are available?
February 2018 Income Statement is available as well as monthly management accounts.
What percentage of the business is cash/credit?
20% Cash 80% Card/EFT
How could the profitability of the business be improved?
The profitability of the business can be increased by expanding their services to insurance companies, fleet management companies or motor vehicle dealerships.
Is Seller finance available and for what amount?
The Seller would require a buyer to provide at least 80% cash upfront.
What is the total staff complement?
2 permanent staff members excluding the owner.
Give a breakdown of staff/ functions/ length of service?
1 x locksmiths 1 x handyman, through the years he has also been trained to do other job functions.
Do any receive special perks or incentives?
All staff receive a basic salary including overtime pay. They do receive bonuses at the end of the year, however this is at the discretion of the owner.
Are they on contract?
Do any have management potential?
One of the locksmith can handle some managerial duties. He also opens and closes the store when the owner is not there.
How involved is the Owner in running the business?
The owner is actively involved in the business and handles the general management, finances, orders and client liaison.
When does the current lease end?
Is there an option of renewal & what period?
There is an option to renew for another 2 years.
What is the annual escalation %?
Annual escalation is 8%.
What are the trading hours?
Monday - Friday 08:00 - 17:00
Is a copy of the lease available?
Yes, this can be provided.
Do you require a licence?
SIRA license are required.
What lease deposit and/or other surety is required?
2 month lease deposit
What are the main assets of the business?
A full asset list can be provided for the business.
Are any items not included in the sale?
No, everything will be included.
What is their overall condition?
Everything is in a good and working condition and none needs repairing.
How have they been valued ?
The owner provided us with a value for the assets.
Which assets are on lease/HP and with whom?
Are they presently insured?
The business has comprehensive business insurance.
- The business is a necessity and not a luxury and therefore they have a very stable income. - Well-trained staff - Longstanding clients - Good split between residential and commercial clients - Room for growth - Good area, situated between a lot of businessesa and training colleges and campusses.
- They do installations and keys for motor vehicles. However this part of the business has not yet been actively marketed.
- Great potential to grow the businesses by contacting insurance companies and motor vehicle dealerships.
What is the reason for the sale?
The owner would like to focus on other business prospects
Why is this a good business?
Recession proof business with longstanding clients (diverse client base). The business is in a good area, with low overheads and room for growth. The owner has good processes and systems in place making it easy for a new owner to take over the business.
Annual Turnover Amount between R 500 thousand and R 6 million