Fully describe the business's activities?
The business supplies purified water (bottles) to schools, businesses and restaurants. They mainly focus on delivering water bottles and water dispensers to their clients in and around Pretoria. They also have a small retail shop servicing walk-in clients. This is a non-franchise business, with an established client base, there are room for growth by focusing on marketing and advertising.
How long has the business been established?
The business was established in 2009.
How does the business operate on a daily basis?
This is an easy to operate business, with little owner involvement needed. Currently, they have a manager opening and closing the store and handling all orders, invoicing and payments. Two staff members are responsible for doing all the deliveries in and around Pretoria. All the bottling and labeling is done on the premises.
How are the clients attracted to the business?
The business is well known in the area. They are also very competitive with their pricing and have been supplying a lot of schools, tuck shops, businesses and restaurants in the area for many years.
What Advertising/Marketing is carried out?
Currently only by word of mouth. This is one aspect of the business that can receive more attention and build a bigger client base - Great potential for a new owner.
Does the business have any contract work?
The business supplies a lot of schools, tuck shops, businesses and restaurants. Currently, no formal contracts are in place, this is not a norm for the industry. They have competitive prices, good service and quality water.
What competition exists?
There are competitors in the area, none which has affected them.
What are the seasonal trends?
During winter sales seams to be a bit slower, but picks up immensely in the summer times and when schools open in January.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The owner has provided us with their monthly turnover, cost of sales and average monthly expenses. All documentation can be verified from their in-house accounting system which they've been doing since inception.
What Balance Sheet and Income Statements are available?
The Financial Statements for 2018 are being finalised.
What percentage of the business is cash/credit?
50% Cash 50% Card
How could the profitability of the business be improved?
A new owner can increase the profitability by focussing on marketing and advertising, there's still a huge scope to increase sales for the business.
What is the total staff complement?
5 Permanent Staff
Give a breakdown of staff/ functions/ length of service?
1 x Driver 1 x Driver/helper 2 x Bottling and labeling 1 x manager (family member)
Do any receive special perks or incentives?
During December the staff receive a bonus. Upon owners discretion he will give them a cash incentive when they reach certain goals.
Are they on contract?
Do any have management potential?
Yes, currently the owner's daughter attends to all managerial tasks.
How involved is the Owner in running the business?
The owner spends a few hours a day at the business.
When does the current lease end?
Current lease ends in 2020.
Is there an option of renewal & what period?
Yes, there is an option to renew for another 3 years.
What is the annual escalation %?
What are the trading hours?
Monday - Friday 08:00 - 16:30 Saturday 09:00 - 12:00
What is the square meters of the business?
Is a copy of the lease available?
Yes, this can be provided by the owner.
What lease deposit and/or other surety is required?
One months rental.
What are the main assets of the business?
- Water purification System; - Fridges - Water Machines on rental - Office furniture and computers
Are any items not included in the sale?
The delivery vehicle is not included in the sale and can be negotiated.
What is their overall condition?
All assets are in a good working condition and none need repairing.
How have they been valued ?
Owners valuation has been used.
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes, the business has comprehensive insurance.
- Competitive Prices; - Good relationships with clients; - 90% of their business is delivery; - Good product - necessity; - Great service and quality product - Easy to operate business with low overheads
- Currently advertising and marketing
- Expanding their products to other schools and businesses, - Adding additional products - In-house label printing - Marketing and advertising
- None perceived
What is the reason for the sale?
The owner and his family are emigrating.
Why is this a good business?
The business is easy to run, they have a good established client base. Lots of room for expansion with marketing. The business is well known in the area, they have loyal staff that have been with the businesses since inception.
What is the price plus stock and the net profit?
The Price for the business is R590000 including R15 000
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