Fully describe the business's activities?
Guest house - dinner, bed and breakfast and lunches included.
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 husband and wife team are fully involved in running all aspects of the guest house and large property. The property has a beautiful water frontage. Walking paths have been developed and a cycle path is in the process of being developed.
How are the clients attracted to the business?
Web site, facebook, Booking.com, Trivago, Expedia, Safari and others.
What Advertising/Marketing is carried out?
Facebook, web page, magazines and Midlands Meander
Does the business have any contract work?
What competition exists?
There is no real competition as there are no licenced establishments like this guest house in the area.
What are the seasonal trends?
Weekends and school holidays tend to be busiest periods
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation is on file.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
The Annual Financial Statements for year ended February 2018.
What percentage of the business is cash/credit?
All transactions are cash or credit card.
How could the profitability of the business be improved?
Establish and advertise the guest house as a wedding venue and conference centre. Open the restaurant to the public.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Three ladies clean cottages and one lady also cooks. All have between 3 months and 3 years service. One gentleman is responsible for maintenance and gardening. He has 2 years service.
Do any receive special perks or incentives?
Are they on contract?
Letters of appointment.
Do any have management potential?
How involved is the Owner in running the business?
Full time involvement.
What are the trading hours?
What is the square meters of the business?
Land 4.95 hectares. Under roof 873sq mt
Who is the Owner/Landlord?
Deane and Belinda Lentz
Do you require a licence?
Liquor licence. Samro licence. TV licence.
What are the main assets of the business?
The main guest house, 7 cottages and other out buildings, and the furnishings in each of the cottages.
Are any items not included in the sale?
Owners personal items which will be pointed out to a potential buyer
What is their overall condition?
Do any require repairing?
How have they been valued ?
By the Owner
Which assets are on lease/HP and with whom?
Are they presently insured?
Owner operated, personal service, excellent condition, located in the beautiful Midlands of KZN. The river frontage and gardens where visitors can picnic with a gourmet picnic basket lunch supplied by the guest house. The gentle walking paths for guests. The Guest House has a 3 Star rating from the Grading Council of SA. The Guest House has been awarded the Lilizela Tourism Award in 2017 and 2018. The main Guest House could be re-designed to accommodate more guests. There is a heavy duty generator, laundry, borehole and water tanks.
Does not cater for visitors from other guest lodges and self catering establishments in the area and local residents.
Develop and promote as a wedding venue and conference centre. Open the restaurant to local residents and visitors from other guest lodges and self-catering establishments in the area.
State of the economy
What is the reason for the sale?
The owners wish to retire with possibility of relocating overseas as their children and grandchildren live overseas.
Why is this a good business?
The business generates good profits and would afford a new owner a wonderful lifestyle in the beautiful KZN Midlands.
What is the price plus stock and the net profit?
Price R7.5m and stock of R20,000. Net profit R138,406.
Annual Turnover Amount between R 500 thousand and R 6 million