Fully describe the business's activities?
Home Industry (Tuisnywerheid) and small coffee shop in busy centre in upper middle class suburb on the West Rand. The business purchases cakes, tarts and savoury foods from various members on consignment and sells them through its retail shop front.
How long has the business been established?
The business has been operating for 13 years.
How does the business operate on a daily basis?
The manager opens the store every morning and mangers the staff in the store. The owner, together with the manager, ensures that stock levels etc are correct. The owner closes the store and checks the daily cash-up etc
How are the clients attracted to the business?
The business has a website and they make use of facebook for promotinal specials. the business is well-known in the area so foot-traffic is very good.
What Advertising/Marketing is carried out?
Besides facebook for promotions and the website they also occasionally make use of brochures distributed within the centre and also occasionally advertise in the local newspaper.
What competition exists?
There is some competition in the area but they are very small compared to this operation.
What are the seasonal trends?
January and February tends to be a bit quieter but it picks up nicely from March onwards.
Are there up-to-date Management Accounts available?
Yes there are up-to-date Management Accounts.
What Balance Sheet and Income Statements are available?
Recent financials are available.
What percentage of the business is cash/credit?
The customers pay either cash or by card.
How could the profitability of the business be improved?
The coffee shop can be expanded quite easily which will attract a lot more walk-in customers.
What is the total staff complement?
3 x Permanent staff in the shop, 3 x Temps in the shop on week-ends, 1 x lady in coffee shop, 2 x bakers in cake Kitchen.
Do any receive special perks or incentives?
Occasionally they may be given a small bonus if business has been exceptional but this is at management's discretion.
Are they on contract?
Yes, the permanent employees have letters of appointment.
Do any have management potential?
There is a manager in place.
How involved is the Owner in running the business?
The owner is involved for about an hour a day.
When does the current lease end?
The current lease is month-to-month and has been so for many years. However, a new lease can be negotiated with the landlord.
Is there an option of renewal & what period?
This can be negotiated with the landlord.
What is the annual escalation %?
The current escalation is 10% but can also be negotiated with the landlord.
What are the trading hours?
Mon to Sat: 8.00 am to 6.00 pm. Sun: 9.00 am to 1.00 pm
What is the square meters of the business?
The business is approximately 168 square meters in size.
Do you require a licence?
Normal Health and Safety Certificate from the municipality is required as the buisness deals in food items.
What lease deposit and/or other surety is required?
One month's rental deposit will be required but can be negotiated with the landlord.
What are the main assets of the business?
There is a full asset list available to interested parties. The main assets are fridges, tables, chairs, fittings and fixtures and all the equipment required to run a home industry and coffee shop.
What is their overall condition?
Very good to excellent condition.
Do any require repairing?
No. All in good to excellent condition and maintenance is done when and where necessary.
How have they been valued ?
Which assets are on lease/HP and with whom?
All assets are paid for. None are on lease or HP.
Are they presently insured?
Yes, they are all comprehensively insured.
Very well-known in the area. Staff are knowledgable. Excellent quality of products that are sold. Nicely profitable. Location in good local and busy centre.
Sometimes keeping up with the constant flow of products can make it important to have the correct members on board.
An extension to the coffee shop and to make it more prominent would add a new dimension to this business.
None really except normal economic conditions.
What is the reason for the sale?
The owner and his wife wish to retire due to having suffered health set-backs recently.
Why is this a good business?
Can be run without being involved 100% of the time. Profitable. Has great growth prospects within the coffee shop space which can be taken to another level.
What is the price plus stock and the net profit?
The total asking price for the business is R1.45 million.
Annual Turnover Amount between R 500 thousand and R 6 million