Fully describe the business's activities?
A Virtual Reality Entertainment shop, not unlike Magic Company, in South Africa's biggest holiday resort. Brand new concept in South Africa, the business was invited by the resort to set up shop within the resort and has since grown at an exceptional rate. The resort falls within a resort franchise group and the business has received invitation from other resorts within the group as well as more than one mall in Gauteng.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The business has a shop within the holiday resort and holiday goers attend at the shop for entertainment as well as games.
How are the clients attracted to the business?
It is the only entertainment shop at the resort and people attend as walk-ins during the day as a leisure activity.
What Advertising/Marketing is carried out?
The resort has television monitors on which the shop is advertised. The business sometimes attend around the swimming areas and hand out flyers. The business has a website as well. Lastly, the business is very visible from the area where the customers are participating in the resort activities.
What competition exists?
None at the resort
What are the seasonal trends?
The holidays are exceptionally busier than the rest of the year with 3 times the staff being brought in to handle the influx of customers.
Is the business VAT Registered?
No not yet. This is the first year of trading.
Are there up-to-date Management Accounts available?
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The business has various opportunities, as well as invitations, regarding new and more stores at prime locations.
Is Seller finance available and for what amount?
What is the total staff complement?
There are 4 employees on a permanent basis together with 1 shop manager. During holidays the business employs a further 4 to 8 employees to handle the influx of customers.
Are they on contract?
4 of the employees are on permanent contract.
Do any have management potential?
Yes. A manager currently runs most of the day-to-day business.
How involved is the Owner in running the business?
The owner is very little involved with the business. The business is mostly run by the manager and staff. The owner only deals with macro management functions like dealing with the resort management.
When does the current lease end?
In 5 years from now
Is there an option of renewal & what period?
What is the annual escalation %?
None. The rental amount is calculated as a percentage of the turnover of the business.
What are the trading hours?
63 hours per week with certain exceptions. Everyday from 09:00 to 18:00.
What is the square meters of the business?
Who is the Owner/Landlord?
The holiday resort
Is a copy of the lease available?
Do you require a licence?
No. Bee level 4 is however required.
What lease deposit and/or other surety is required?
R100,000.00 was paid by the business upon occupancy.
What are the main assets of the business?
Entertainment equipment used by the business.
Are any items not included in the sale?
What is their overall condition?
Very new. An international online maintenance team is furthermore available 24 hours a day. The equipment is furthermore under replacement warranty.
How have they been valued ?
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes. The business has public liability as well as product liability insurance.
The business is situated within the biggest holiday resort in South Africa with a very large customer base.
Off-season trends effect customer numbers.
The business has been invited to move to an even better location within the resort. The resort furthermore falls within a franchise group of resorts and 2 other resorts have informed their interest regarding opening branches of the same business as well. Two malls in Gauteng have invited the business to open shops on their premises as well.
Companies copying the same concept.
What is the reason for the sale?
The owner is a Dubai National and has been requested to return in order to attend to other responsibilities.
Why is this a good business?
The business has shown an exceptional growth since it has commenced trading. The concept of virtual reality on this level is furthermore new to the South African markets and attracts exceptional interest. The business is furthermore endorsed by a very large holiday group and has material opportunity for growth.
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Annual Turnover Amount between R 500 thousand and R 6 million