Fully describe the business's activities?
A well know convenience store brand which is owned by 1 of the largest chains in Africa. Opens early closes late and services the surrounding offices and residential suburbs. positioned in centre. Business rebranded under new franchisor in last 12 months
How long has the business been established?
Business was started 11 years ago.
How long has the owner had the business?
How does the business operate on a daily basis?
Opens early & closes late. there are 2 managers in the business
How are the clients attracted to the business?
The business is well position to service a number of large corporate buildings in the area and, surrounding residential areas. There is a large gym nearby as well.
What Advertising/Marketing is carried out?
Well signed, franchise is well known.
Does the business have any contract work?
What competition exists?
The business meets the needs of those who require early and late service. It also services the appropriate lsm market.
What are the seasonal trends?
Due to rebranding it is difficult to say at this stage. Business is showing good growth since new branding.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
70% cash 30% credit
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Business needs to time to mature. On site owner will always be better.
What is the total staff complement?
2 managers 6 staff
Are they on contract?
How involved is the Owner in running the business?
Owner has number of other stores so is involved from head Office perspective.
When does the current lease end?
Is there an option of renewal & what period?
Yes 3 years
What is the annual escalation %?
What are the trading hours?
6-11 Mon - Fri 7-11 Sat & Sun
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What is their overall condition?
Shop in good condition
Are they presently insured?
Is a full asset list on file?
available thru seller
Very well located, convenience to many, managers in place, known brand, good margins, able to leverage off franchisor
Trading for last year under new branding
To continue to market the store to late revellers etc
Business has own niche
What is the reason for the sale?
Seller has other business interests
Why is this a good business?
Seller has created his own brand however this makes little difference because it is a convenience shop with excellent margins
What is the price plus stock and the profit?
Total R1,200,000 including stock at R300,000
Annual Turnover Amount between R 500 thousand and R 6 million