Fully describe the business's activities?
World of Rustic Frames and Furniture is a business concept that involves the use of recycled wood taken from business sites and transforming it into furniture and rustic frames. Frames are exported to different parts of the world. They are a live workshop where customers can see their work in progress. TRANSFORMING ORDINARY PHOTOS INTO WORKS OF ART
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business operates by having a showcase shop open to the public where customers are able to see work in progress.They deal with online sales and international orders.
How are the clients attracted to the business?
They have a very active facebook and instagram page whereby they load new images weekly from specials to new items. They have a following of 4000 clients. They also advertise on facebook.
What Advertising/Marketing is carried out?
Facebook and Instagram advertising
Does the business have any contract work?
No but they have regular purchases from big international clients.
What competition exists?
Their is competition but their product range has a unique style. This, together with the fact that they custom make to design and measurement draws customers to them.
What are the seasonal trends?
Sales are consistant throughout the year. More advertising is done in winter than in summer. In summer they have a lot of international buyers coming to their shop which is situated in a very trendy part of town.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
70 % On credit card. 30% cash.
What is the age analysis of the debtors book?
There are no debtors
How could the profitability of the business be improved?
By going to trade shows and by opening smaller stalls at strategic locations like the Cape Town Waterfront or Canal Walk.
Is Seller finance available and for what amount?
What is the total staff complement?
The business is operated by the owner and her husband. There are 3 other staff members, John, Andre and Saleem.
Give a breakdown of staff/ functions/ length of service?
Saleem, John and Andre are operators in the business handling all aspects of production, client liason and cash handling.
Do any receive special perks or incentives?
Are they on contract?
They are employed on a full time basis.
Do any have management potential?
Yes - Andre and John
How involved is the Owner in running the business?
The owner can walk away and Andre and John will handle every aspect of the business.
When does the current lease end?
A new lease will be in place at R 23 000/month + VAT
Is there an option of renewal & what period?
Yes - 5 years
What is the annual escalation %?
What are the trading hours?
Trading hours are from 08h00 to 17h00 Monday to Saturday.
What is the square meters of the business?
400 sq metres
Who is the Owner/Landlord?
The current owner of the business
Is a copy of the lease available?
A new lease agreement will be drawn up.
Do you require a licence?
What lease deposit and/or other surety is required?
2 Months or R 46 000
What are the main assets of the business?
Woodworking machinary, furniture, computers
Are any items not included in the sale?
What is their overall condition?
Good - all 100 % functional
Do any require repairing?
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
Are they presently insured?
A unique product with no competition
Exposing the products to a wider customer base by having small stalls in popular venues.
Wood supply is critical to the business.
What is the reason for the sale?
Owners have had the business for 14 years, and are wishing to retire.
Why is this a good business?
A unique product range that gives a 4000% profit margin. The business is situated in a prime tourist position. The business can easily be expanded into new markets and areas.
What is the price plus stock and the net profit?
Price : R 2.95 M including stock Stock : A huge amount of stock is in storage at a small value but which is converted into saleable product at an excellent mark-up.
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