Fully describe the business's activities?
Manufacturers and Distributors of fresh fruit juices, flavoured waters, ginger beer and new sparkling "Pleazers". Also sparkling and still water.
How long has the business been established?
How long has the owner had the business?
Approximately 18 months ago.
How does the business operate on a daily basis?
The Owner is supported by a team of 12 staff all with their own areas of responsibility. The business has its own distribution and also makes use of couriers for outlaying places. Recently listed regional stores of a national chain store resulting in a strong boost in sales.
How are the clients attracted to the business?
Face Book Van Sales....repeat business
What Advertising/Marketing is carried out?
Usage of Face Book and other media.
Does the business have any contract work?
The business will label water for private clients as required
What competition exists?
There are many other competitors each with there own client base and share of market.
What are the seasonal trends?
Very strong sales growth over the summer and holiday periods. Winter months are much slower but still trade solidly.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes, as and when required
What percentage of the business is cash/credit?
There are cash sales through the vans, but all cash is placed into a drop safe and only accessed by the admin department when the van returns. There are account facilities for select clientele.
How could the profitability of the business be improved?
The business has recently acquired a listing in the Southern Cape branches of a national chain and the forecast from September to December is an incremental R800,000+ If there was a strong management team in place the business could look for new retail distribution as production capacity does allow for this. One member of the team could oversee the manufacturing and distribution while the other could focus on the sales, marketing and administrative requirements. A free lance rep would be an advantage.
What is the total staff complement?
12 Excluding Owners.
Give a breakdown of staff/ functions/ length of service?
There are 12 staff each with their own responsibilities 2 Admin Staff 4 Staff at filling stations 2 Drivers with assistants
Do any receive special perks or incentives?
No, any incentives paid are at the discretion of management. The van sales staff enjoy an incentive on incremental sales.
Are they on contract?
Normal conditions of employment.
How involved is the Owner in running the business?
On a daily basis in the capacity of General Manager. Unfortunately for personal reasons the management team has split and only one Director is actively involved with the business.
When does the current lease end?
Is there an option of renewal & what period?
Yes, subject to negotiation
What are the trading hours?
Monday to Thursday 07-30 to 4-30pm Fridays 07-30 to 4-00pm Saturdays if and when required, especially during the summer holiday period.
What is the square meters of the business?
488 square meters
Is a copy of the lease available?
Do you require a licence?
Regular sampling of finished product by health authorities.
What are the main assets of the business?
Plant and Machinery. Coldroom equipment. Computer and office equipment.
Are any items not included in the sale?
Owners laptop is not included in the asset list. One deep freeze is not on the asset list.
What is their overall condition?
Very Good...well maintained.
Do any require repairing?
How have they been valued ?
Owners second hand value.
Which assets are on lease/HP and with whom?
The labeling and date/best before date machine is on lease to own
Will Seller settle or Buyer to take over?
Buyer should take over.
Are copies of agreements available?
Are they presently insured?
Raw materials readily available. The business blows their own bottles. Automated labeling with expiry dates. Produce private label product as required. Business has potential for increased productivity. Staff long serving and well trained.
A hands on business that suits a team rather than one individual. Currently Director too busy to open new routes to market.
Numerous opportunities for range extensions and increased distribution.
There are no obvious threats known of
What is the reason for the sale?
The one Director does no wishes to be active within the business for personal reasons, and this leaves only one Director operative. This Director is not able to do justice to the business and rather than look for a partner would prefer to relinquish the operation to a new Owner, ideally a family team.
Why is this a good business?
This is a franchise, but the Franchisor has allowed this business to source their own raw products and also they do not pay over a marketing fee or royalties by agreement. The Franchisor insists that caps and labels need to be bought from the Franchisor. This is a small expense relative to the operation.
What is the price plus stock and the profit?
The price of the business is R4.9 Million The stock is currently in the region of R300K The current average monthly profit for the past 12 month period is R849,000.
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