Fully describe the business's activities?
Selfie's has taken the market by storm creating a great space for this business. Photobooths are placed at functions for guests to take selfie's at leisure, exciting features/backgrounds can be added and the prints are received immediately as souvenirs.
How long has the business been established?
The owners started up the business three years ago.
How does the business operate on a daily basis?
Inquiries are taken by the manager who quotes the clients and sends out the invoices. On the actual day of the function an attendant/casual delivers the photo booth at the venue, assist the guests with operating the booth and at the end of the function take the booth home.
How are the clients attracted to the business?
The business sports a website and mainly email bookings are received from the website
What Advertising/Marketing is carried out?
Google AdWords Facebook with over 180 000 likes Also has a very self explanatory video on Facebook
Does the business have any contract work?
No contracts but very good relationships with big corporates ensures repeat business
What competition exists?
A couple of one-man-bands working from home in Gauteng area
What are the seasonal trends?
January is very quiet with the last four months of the year being peak time.
Is the business VAT Registered?
Yes the business is VAT registered
What VAT documentation is on file?
All relevant documents are uploaded via E-filing.
Are there up-to-date Management Accounts available?
Owner keeps excellent records in Excel which can be made available.
What Balance Sheet and Income Statements are available?
Financials for February 2018 is available from the owner.
What percentage of the business is cash/credit?
80% of the business works on a 50% deposit which is payable upfront and the remainder is payable before the event. Only a few corporate companies enjoy a 30 day period
What is the age analysis of the debtors book?
Estimate of R 60 000 -100 000 on a 30 day period
How could the profitability of the business be improved?
Photo booths can be imported and sold More owner involvement Personal marketing Franchise model can be created
Is Seller finance available and for what amount?
Yes, seller will consider financing an approved buyer with a deposit of R 1 600 000.
What is the total staff complement?
Currently the business have two employees. One that acts as manager (not needed) One operator who is currently doing the work of the manager
Give a breakdown of staff/ functions/ length of service?
Manager - 3 years Operator - 1 year 12 x Attendants. These are mainly students/casuals who then drops the booths at the venue and oversee the event and then transports the booths back.
Do any receive special perks or incentives?
Manager and Operator can attend functions for additional income. Incentives are in place for them once turnover has been reached. Attendants get paid per hour.
Are they on contract?
Do any have management potential?
Operator is currently operating as the manager.
How involved is the Owner in running the business?
One owner takes care of the designs and spends about 5 hours per week in the business Second owner takes care of the marketing side and spends about 2 hours per week in the business.
When does the current lease end?
Owners currently operate this business from the premises of their other businesses. They can either extend a lease to the new owner (R 4000 rent has been included in the Expenses for this) or they can operate from home. Space needed would be a double garage wherein to store the booths and the one vehicle. Note - bigger corporates do visit their premises and it gives a better impression.
Is there an option of renewal & what period?
To be negotiated
What are the trading hours?
Monday to Friday from 8:00 - 17:00
What are the main assets of the business?
14 x Photo booths with software 1 x Renault Kangoo
What is their overall condition?
Everything in an excellent condition
How have they been valued ?
Owner assisted with the Purchase prices
Which assets are on lease/HP and with whom?
Vehicle is still on hire purchase. To be taken over.
Are they presently insured?
Insured for public liability.
The business has a very good name in the corporate world. A very strong online presence. Excellent variety. Low overheads Branches to which referrals are made in Durban and Cape Town
Not enough owner involvement. No personal marketing
Sales of the photo booths. Establishing franchises Attending Bridal Expos Attending expo in USA to see whats new and bring to SA
None were identified.
What is the reason for the sale?
Both owners have other business that demands their attention
Why is this a good business?
Well established business with excellent processes and room for growth with just a little bit of attention.
What is the price plus stock and the net profit?
Selling for R1 900 000
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