Fully describe the business's activities?
The Assembling and revamping of Vending machines and distributing them country wide. The owner works form home, has no employees and business is running at 50 % gross profit. The owner is negotiating with a huge manufacturing organisation to install 7 rental machines. These machines will generate a re-curing monthly income of approximately R 15 000.
How long has the business been established?
The owner started the business in 2014.
How long has the owner had the business?
Since the business started.
How does the business operate on a daily basis?
The owner has a very high advertising profile and attends to email, queries and quotations first .Prices for components are sourced and quotes are sent out. Machines a assembled or revamped as required and delivered by a courier company. The owner is also entering the rental arena where machines are rented producing a re-curing income.
How are the clients attracted to the business?
Web site, Google ad words and word of mouth advertising.
What Advertising/Marketing is carried out?
The Business as a website and also advertises on social media.
Does the business have any contract work?
No contract work., but is negotiating rental contacts with huge companies.
What competition exists?
Limited competition from other suppliers.
What are the seasonal trends?
Constant demand throughout the year.
Is the business VAT Registered?
The business is not VAT registered.
Are there up-to-date Management Accounts available?
Management accounts for period 1 march 2018 to 25 December 2018 available.
What Balance Sheet and Income Statements are available?
Pastel Income statement and Balance sheet fr last two financial years.
What percentage of the business is cash/credit?
All business is cash in advance, unless acceptable arrangements are made.
What is the age analysis of the debtors book?
No debtors book.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
No Staff members are employed.
How involved is the Owner in running the business?
When does the current lease end?
The current owner works from home and the new owner would need to source his own premises> This is a low overhead business and is ideal to work from home.
What are the trading hours?
The owner works 8 am to 5 pm Mondays to Fridays.
What is the square meters of the business?
About30 m2 is required for this business.
Do you require a licence?
No licence required.
What are the main assets of the business?
The main assets of the business is old machines that are bought on auctions and revamped. These machines are stripped and reconstructed using new parts where required. The secret of this business is in the reconstruction/revamp of old machines and selling or renting out.
Are any items not included in the sale?
all items on the list is included in the Sale
What is their overall condition?
The machines are easy to maintain and in an excellent working condition.
Do any require repairing?
No repairs required at present.
How have they been valued ?
The stock is valued at replacement value. The assets are valued at a market realizable value.
Which assets are on lease/HP and with whom?
No equipment on Lease or HP.
The main motivation of installing vending machines is to remove the human element to retail. The machines are loaded from time to time, nobody has to handle or safe guard stock, no cashier needed and the machine takes full control of cash management. Vending machines is the way to go for efficient merchandising and retailing of stock and cash.
A competitive industry with numerous suppliers.
This business is a low overhead, huge GP and a well structured advertising business. To assemble your own machines ( Which is very easy) with components which are locally available results in huge cost savings, capital outlays, and increases your bottom line profits. The seller offers full training and introduction to clients and suppliers during due diligence process and has marked this business to sell. The capital outlay for this business is low with huge financial rewards.
No licenses or permits are required . There are no threats to this business
What is the reason for the sale?
The owner wishes to emigrate
Why is this a good business?
Work from Home, no staff costs, low overheads, huge Gross Profit and an escalating demand for the machines. The present owner is installing numerous rental machines in a big manufacturing plant and will service the machines to gain margins on the product sales. This is a direction which the owner is exploiting.
What is the price plus stock and the net profit?
For the period from 1March 2018 to 28 February 2019 this business has made a turnover of R 801 000 with another R 160 000 orders for March and April 2019. The cost of Sales is very low ans the owner is concentrating on reconstructing and revamping of old machines.
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