Fully describe the business's activities?
This business is a small playschool for babies ages 3 months to 4 years. Currently, they are looking after 33 kids and they have the capacity to increase the number of kids to 45 (45 kids - concent use). This is a beautiful school with, large classrooms, big play areas, excellent staff which parents are extremely comfortable with. This is not a pre-school following a curriculum but rather a play school where children are encouraged to learn through play. PROPERTY: Due to the nature of the business, the owner would like to sell the property in conjunction with the business. This will be sold at a market-related price - R1.5 million. There is also a option to lease the property for a period.
How long has the business been established?
The owner started the business in 2014.
How does the business operate on a daily basis?
The business is run by a mother and daughter team. Their main responsibilities are the general management of the school, dealing with administrative tasks, communication with parents, new enrollments and managing the teaching staff. They have 4 different classes with a teacher and assistant for each class.
How are the clients attracted to the business?
Most of their new enrollments are through word-of-mouth. The school is well known in the area with little to no competition.
What Advertising/Marketing is carried out?
They make use of social media in particular Facebook. They also have a website.
What competition exists?
There are little to no competition in the area, specifically for babies.
What are the seasonal trends?
During winter they rarely receive any new enrollments. December is also a quiet month due to a lot of kids moving on to Grade R.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
This can be provided by the accountant
What Balance Sheet and Income Statements are available?
The owner provided us with their Income Statement for the year. They do their own monthly reporting by using accounting software in-house.
What percentage of the business is cash/credit?
All parents pay via EFT.
How could the profitability of the business be improved?
A new owner can focus on doing more marketing. There is an option to increase the number of classrooms.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
2 x teachers 2 x assistants 1 x cook/ cleaner 1 x cleaner 1 x casual
Do any receive special perks or incentives?
All receive a basic salary and an annual increase.
Are they on contract?
Yes. One teacher has been employed on a temporary basis.
Do any have management potential?
Yes, one teacher has the potential to serve as a school principal.
How involved is the Owner in running the business?
The owner and her daughter is currently 100% involved in the day-to-day activities of the business. However, the business does need owner involvement but one person will be able to run the business.
When does the current lease end?
The property is owned by the owners husband. They wish to sell the property with the business at a market-related price.
What are the trading hours?
Monday - Friday 06:30 - 17:30 The one teacher opens and closes.
What are the main assets of the business?
Owner has provided us with a full asset list of the business.
Are any items not included in the sale?
Everything will be included in the sale.
What is their overall condition?
Everything is in a good and working condition.
Which assets are on lease/HP and with whom?
Are they presently insured?
The owner has comprehensive business insurance.
- Well known business and good reputation; - Qualified and trusted staff team; - Good relationship with parents.
- Lack of marketing
- New owner can focus on actively marketing the school
- None Perceived.
What is the reason for the sale?
The owner is emmigrating
Why is this a good business?
Well-known, trusted school in the area. Easy to run with good, qualified staff team in place. Scope for growth.
Annual Turnover Amount between R 500 thousand and R 6 million