Fully describe the business's activities?
This is a well known franchised pawn shop that deals in second hand goods and also retails new merchandise. Cash loans is also part of the revenue stream.
How does the business operate on a daily basis?
Business can best be described as a retail outlet with walk in clients. Because of the nature of the industry there are many repeat clients. There is an assistant manager that opens and closes shop.
How are the clients attracted to the business?
Most of the advertising for the business is done by the franchisor. The shop front and layout of the retail space is also very important for this type of industry.
What Advertising/Marketing is carried out?
In the local area the business will advertise using flyers and leaflets on an ad hoc basis. Facebook
Is the business VAT Registered?
The business is VAT registered
Are there up-to-date Management Accounts available?
Being a franchise a well designed management system is in place. Trial Balance Reports for the years ending February 2018 and 2019 is on file
What Balance Sheet and Income Statements are available?
This outlet forms part of a bigger company. A balance sheet and income statement for the business is available separately. These numbers will be verified by franchisor and the POS system.
What is the age analysis of the debtors book?
Loan book of around R600 000 on which interest of 20% per month is received
How could the profitability of the business be improved?
It is important that for this type of business the owner should be in the store.
Give a breakdown of staff/ functions/ length of service?
1 x Manager 2 x Buyers 9 x General Staff
Do any have management potential?
There is already an assistant manager in the business who takes care of the day to day activities - opens/closes the shop and does the daily cash up.
How involved is the Owner in running the business?
Limited involvement from the owner.
What are the trading hours?
Monday to Friday from 08:00 - 17:00 Saturday from 08:00 - 14:00 Closed on Sundays
What is the square meters of the business?
148 sq/m plus storeroom
Do you require a licence?
Registered credit provider and are 100% compliant with the National Credit Act (NCA) of 2007.
What is their overall condition?
The assets are in good condition as per franchisor requirements.
Do any require repairing?
No repairs or maintenance needed.
Are they presently insured?
The business has comprehensive insurance.
Franchised systems makes it easy to manage. Proper advertising is done. It is a well established outlet. Ran and operated by an assistant manager.
The business is not owner operated
Increase the retail space.
We could not identify any. The business is very stable.
What is the reason for the sale?
Owner is relocating.
Why is this a good business?
It is a well known brand. Established outlet. Manager run. Loyal repeat client base.
What is the price plus stock and the net profit?
Asking price for the outlet is R1 200 000 plus inventory of R1 000 000 and value of loan book of R600 000
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