Fully describe the business's activities?
This is a second hand retailer with a long standing arrangement with a well-known retail chain to also sell new stock that they have written off. This merchandise is acquired at a very low price.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Manager with one cashier manages days to day activities. Two technicians handles repair work on a contract basis.
How are the clients attracted to the business?
Repeat clientele through 3 years of operations . End of month sales advertised in local media. Social media advertising.
What competition exists?
Other second hand shops in town.
What are the seasonal trends?
Based in coastal town so busier over December holidays
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
All is cash. No accounts.
Is Seller finance available and for what amount?
What is the total staff complement?
Manager, Cashier and 2 Technicians who are paid per job completed.
How involved is the Owner in running the business?
The owner is actively involved.
When does the current lease end?
Year to year lease. Owner would be happy to sign long term lease.
What is the annual escalation %?
What are the trading hours?
Monday to Friday 8 - 5 and Sunday 8 - 1. Currently closed on a Saturday because of owners religion.
What is the square meters of the business?
About 500 square meters
Is a copy of the lease available?
Do you require a licence?
Second hand trade license.
What lease deposit and/or other surety is required?
What are the main assets of the business?
Are any items not included in the sale?
What is their overall condition?
They have developed a unique stock tracking and sales system. The system has the ability to immediately work out what the cost price of an item should be in order to make a profit. This ability will enable anybody without second hand trading experience to successfully manage the the shop. The arrangement with the retail store for the returned goods ensures exceptionally high profit margins.
Huge opportunity to grow even further by doing more extensive marketing.
Nothing that can be seen.
What is the reason for the sale?
Owner wants to retire.
Annual Turnover Amount between R 500 thousand and R 6 million