Fully describe the business's activities?
A retail store that has developed a sound reputation delivering high quality household furniture and homeware.
How long has the business been established?
How long has the owner had the business?
The owner established the business.
How does the business operate on a daily basis?
The business is run by a full time manager. The owner spends 1 to 2 days per week in the business attending to administration. The products are sourced from an exclusive group of suppliers.
How are the clients attracted to the business?
Word of mouth referrals, good association with architects and interior designers, website, social media and walk-in customers. While the business is based in a popular coastal town, the client base is spread across the Western Cape.
What Advertising/Marketing is carried out?
The business has a website, Facebook page and has very prominent billboard signage.
What competition exists?
There are other retailers in the area but they are not focussed on the high end market.
What are the seasonal trends?
Consistent business throughout the year with the Easter and December holidays being the busiest.
Is the business VAT Registered?
Yes. All VAT documentation is up to date and available.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Annual financial statements for the year ended February 2018.
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
Expand with more homeware ranges.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Combined 20 years' experience.
Do any receive special perks or incentives?
There is an incentive scheme in place.
Are they on contract?
Do any have management potential?
Yes. The current General Manager runs the business on a day to day basis.
How involved is the Owner in running the business?
1 to 2 days per week.
When does the current lease end?
Is there an option of renewal & what period?
Yes, for a further 3 years at an annual escalation of 10%.
What are the trading hours?
Monday to Friday 09h00 to 17h00. Saturday 09h00 to 14h30.
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
1 month's rental.
What are the main assets of the business?
Shop fittings and IT equipment.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Fair resale value.
Are they presently insured?
Well established style and brand. Serves an up-market clientele seeking inspirational, creative products that are not found in run-of-the-mill retail outlets.
Expansion of homeware product ranges. Open additional stores.
What is the reason for the sale?
The owner wants to focus on other interests.
Why is this a good business?
This is a well-established business generating healthy cash flows, with well trained and motivated staff, good systems, serving an up-market client base.
What is the price plus stock and the net profit?
The selling price is R3.3 million, including stock of R2.0 million. The business generated a net profit of R885k in the last financial year.
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