Fully describe the business's activities?
Design, manufacturing, retail and wholesale of a unique range of branded jewellery, accessories and corporate gifts, all locally produced. Jewellery and accessories made with organically shaped tarnish free, non-allergenic cast metal alloy beads married to different materials such as Petersham ribbons, leather, hand painted silk and the bright Shweshwe fabric. All items are presented in an eye catching package with a striking pillow-box suitable for display in shops as well as online platforms.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Orders are taken by various means, administrative functions are carried out to process the orders and to buy in raw materials and then production is carried out to satisfy the orders and to replenish stock.
How are the clients attracted to the business?
Direct : attending high end markets and social media Wholesale : tradeshows and agents Corporate : corporate gifting trade shows
What Advertising/Marketing is carried out?
Newsletters to 3 segments Trade Shows Social media
Does the business have any contract work?
What competition exists?
Other fashion jewellery brands, but none focusing on the 3 income groups
What are the seasonal trends?
Jewellery worn more during summer time. More tourists during summer time/high season.
Is the business VAT Registered?
What VAT documentation is on file?
All documentation on file for viewing
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
2014 to 2019
What percentage of the business is cash/credit?
95% Credit card/cash ; 5 % on credit ( 30 day accounts )
What is the age analysis of the debtors book?
Max 30 days
How could the profitability of the business be improved?
Business has a very lean set up, with overhead costs kept to a strict minimum. Extremely efficient set up. Only way to improve profitability is by increasing turnover.
Is Seller finance available and for what amount?
Ideally not, but maybe negotiable on stock.
What is the total staff complement?
1 Permanent staff member. The business operates with contract workers who understand the products, with manufacturing being outsourced to them.
Give a breakdown of staff/ functions/ length of service?
The permanent staff member and the owner are involved with : Quality control - ensuring that quality is maintained by the contract workers Production - issuing set quantities of raw materials to contract workers and monitoring that correct quantities of finished product are received. Preperation of orders/invoicing/ordering of raw materials. The staff member has been with the company for 5 years
Do any receive special perks or incentives?
Are they on contract?
The staff member is permanently employed while the contract workers are paid per quality unit. This is both financially beneficial and labour wise for the company and is a social act by the company by spreading the work in the community.
Do any have management potential?
How involved is the Owner in running the business?
Very involved but she has developed excellent procedure and reporting systems that are easy to take over.
When does the current lease end?
30 June 2019
Is there an option of renewal & what period?
Yes, month to month or a term agreement.
What is the annual escalation %?
What are the trading hours?
Weekdays from 8am to 5pm. No Saturday work unless called for.
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
One month deposit.
What are the main assets of the business?
A full asset list is on file
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
Are they presently insured?
Low overheads; high gross profit (77%); low investments; healthy payment system(90% of customers pay upon ordering);30 day credit with main suppliers; 3 unique selling points; excellent customer service with an easy ordering system; clear agents ordering procedures with signed contracts; organised and efficient all-in-one electronic management system; huge production capacity potential; extended and up to date database of customers and leads; strong brand identity; shop set up on Takealot and Amazon, fully functional ecommerce.com website with semi automated newsletter campaigns.
Limited marketing budget to boost ecommerce. Limited PR and media exposure. Challenge to keep Quality Standards at international level with certain local suppliers. B-BBEE only Level 4 contributor.
Broader target ( gender, age, location ) Add other product types to the range. More export countries - favourable ZAR currency exchange Delegate external PR DTI funding for overseas tradeshows and missions. Huge potential for Ecommerce internationally. Open retail kiosks in selected key locations.
Fluctuating currency exchange One market sector becoming too big Cheap competition
What is the reason for the sale?
Owner is emigrating.
Why is this a good business?
Good reputation Strong unique selling points High mark up Huge production capacity potential Favourable DTI funding - owner will discuss. Export favourable Clear procedures at each level Excellent integrated tracking system for orders, invoicing and stock Business not liked to the owner as a person.
What is the price plus stock and the net profit?
Selling price : R 1 400 000 including stock Stock : R313 000 Average monthly net profit : R 40 946
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