Fully describe the business's activities?
Retail paint store and cleaning chemical sales.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
There are two staff members who run the store and the Owner visits from time to time to ensure that everything is running smoothly.
How are the clients attracted to the business?
Strong word of mouth endorsement and repeat customers. Limited Face Book and other advertising. The use of a representative would be advantageous.
What Advertising/Marketing is carried out?
Face Book strong
What competition exists?
There are other paint outlets situated in the town but each store has their own select clientele.
What are the seasonal trends?
Although coastal based the seasonality impact on this business is not too significant but the winter period of June to August drops off.
Is the business VAT Registered?
What VAT documentation is on file?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
40% Cash/ 60% Credit Card
What is the age analysis of the debtors book?
The business carries very limited accounts.
How could the profitability of the business be improved?
An on-site Owner would be able to increase the client base in the surrounding area without increasing overheads or headcount. If a new Owner were in the store then the opportunity exists to go out and visit contractors and other clients. Trade clients are able to obtain preferential pricing and this is an ideal message for a representative to carry to the customers.
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Both staff members are sales persons and have been in the business since inception.
Do any receive special perks or incentives?
Sales incentives are offered periodically.
Are they on contract?
How involved is the Owner in running the business?
The Owner oversees the business remotely and receives the management reports but is not permanently in the store. He makes a point of visiting the store regularly.
When does the current lease end?
Is there an option of renewal & what period?
Yes, subject to negotiation
What is the annual escalation %?
To be negotiated.
What are the trading hours?
Monday to Fridays: 08-00am to 5-00pm Saturdays: 08-00am to 12-00
What is the square meters of the business?
268 square meters
Is a copy of the lease available?
What lease deposit and/or other surety is required?
A months rental is required as a deposit.
What are the main assets of the business?
Fixtures and Fittings Software and computer
Are any items not included in the sale?
No, all business related equipment, fixtures and fittings, stock etc included as per this report.
What is their overall condition?
Very good..Store still looks and feels new.
How have they been valued ?
Owners second hand value.
Are they presently insured?
Service levels and focus on supplying a client exactly what they require. Store well supported by locals. Staff well skilled and required technology available. Extremely well located with excellent visibility and easy access on main street with ample parking. trade customers enjoy preferable pricing.
More focus on increasing the stores name and marketing in general. The Owner not being based on site.
This town is showing strong growth and is a location of choice for people relocating from inland. The discovery of new offshore fields will also impact positively on the town and the local inhabitants and this will once again show growth in the retail sector.
The significant threat for this business is that it really needs to increase its customer base and expand. With a store based Owner this will not be significant.
What is the reason for the sale?
The Owner has a few of these stores in the region all trading under the same brand name. He needs to increase manufacturing production in order to ensure that the demands can be met. In order to do this he needs to sell off the stores and focus on manufacturing. He will still retain one store.
Why is this a good business?
This is a good business for a Buyer who wishes to still be involved and earning but who also wishes to enjoy a good quality of life, coastal based and in a town with extremely temperate weather and secure. The town is showing extremely solid growth with new offshore gas finds, and paint is a product line that is always needed. Having the product being manufactured within the group is a distinct advantage. Any Owner who remains focused in the business will show solid growth and profitability.
What is the price plus stock and the net profit?
The price of the business excluding stock is R680,000 and stock is in the region of R300,000. The monthly profit is R17,000 as things currently stand but with the incremental sales of cleaning chemicals then the monthly profit would increase significantly. In the short/medium term to net profit of R 25 000 as indicated in the financials. .
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