Fully describe the business's activities?
The business imports concentrated fragrance oils directly from reputable manufactures situated in France & Spain in large quantities This is then re-packed into smaller sizes & supplied to a wide clientele of perfume mixers within South Africa & neighboring countries; along with related products. In addition, Courses are also offered in Fragrance Manufacturing, which has gained a vast popularity amongst entrepreneurs entering this industry.
How long has the business been established?
How does the business operate on a daily basis?
The owner checks on orders & stock, instructing staff to decant & despatch as required. The overseas suppliers & shipping agents are dealt with as & when required.
How are the clients attracted to the business?
Many businesses/shops (70% of turnover - small numbers but large quantities) & individuals (30% of turnover - large numbers but small quantities) provide repeat business & referrals, while the good website is another source.
What Advertising/Marketing is carried out?
Website & Facebook
Is the business VAT Registered?
No it has grown to this level without being Vat registered & paying VAT on all imports
Are there up-to-date Management Accounts available?
Management accounts are not produced in detail but the Bank Acc Statements shows all income & expenses related to the business; which in unison with the importation documentation & hand written receipts for cash sales (most deposited into the Bank acc & all recorded on the computer as well) would substantiate the figures.
What Balance Sheet and Income Statements are available?
Basic AFS are available for the past years, while this Report is based on AFS 2018, with annual figures averaged over the year, while Management Accounts/Invoices/Bank accounts, would show monthly variances
What percentage of the business is cash/credit?
Efts account for 50% of the turnover & some 80% of the cash is deposited into the bank, with the remaining amount used for cash dispursements
What is the total staff complement?
The owner, can operate from home with ordering & controlling, but come in to check stock levels & meet clients. Then 2 full-time staff members - One is reception & sales orientated & the other unpacks, dispenses & dispatches products. Customers either collect or have delivered via an outside Co (at their cost) their products.
The seller presently operates this business from offices in the City centre where most of the clients are situated. A new three yr lease has just commenced.
What are the main assets of the business?
Computer with invoicing system, supplier & client details/emails, as well as, shelving, desk/chairs, scales. All are in good working condition & worth some R5 000 on a forced sale basis.
Sole agency to import/distribute in SA. Easy business to operate - existing clients, website, import, dispense, dispatch, & only 2 staff members required
Although the owner has all Bank account statements/ invoices/receipts on hand Management Accounts are not well kept, however, since the product importation prices & sale prices are easily determinable, as are the small number of applicable costs
Add other products/services to the business's/website's offerings
Others could find similar suppliers/products, but they would take time to create an effective website & similar client base
What is the reason for the sale?
Owner has a young family to look after
What is the price plus stock and the net profit?
R980 000 excl stock of some R50 000, with a Net Profit of some R544 000 pa. Depending on the variations of stock the Purchaser wishes to hold, the stock would normally be in the R300 000 - R500 000 range, which the seller has & would supply to the Purchaser on a consignment basis.
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Annual Turnover Amount between R 500 thousand and R 6 million