Fully describe the business's activities?
1) Local/national Sales of renowned upmarket motorcycle brands second hand. Harley-Davidson BMW Indian Victory Cleveland Ducati Triumph Kawasaki Honda Suzuki Yamaha. Nationally Indian and Cleveland can be sold new, all other brands nationally second hand. 2) Export of new motorcycles Harley-Davdson BMW Ducati. 3) Import, sales and distribution of American cruiser type clothing and accessories apparel, locally and nationally, with a strong online shop presence. 4) Workshop servicing all brand but specialised in American motorcycles and custom work incl engine tuning / DYNOJET
How long has the business been established?
How long has the owner had the business?
The owner has had the business since inception
How does the business operate on a daily basis?
Employees are in place to carry out every task and aspect of the business. They are supervised and coordinated by a manager, who also does administrative work and payments. Currently the owner is the manager.
How are the clients attracted to the business?
Word of mouth by satisfied customers and repeat customers.
What Advertising/Marketing is carried out?
Intensively and exclusively online and free of cost. After years of experimenting with all sorts of print adverts, online proves itself as most effective. This work is carried out by trained employees. The business has a 4.6 star rating on Google
Does the business have any contract work?
What competition exists?
There is no direct competition. It is a uniquely small and specialized niche market, in which the business has been established for over a decade. The nearby franchised licensed dealerships are not considered competition, because they are only permitted to deal with new and branded items exclusively.
What are the seasonal trends?
Due to it's nature in the luxury motorcycle industry, business can be quite volatile in terms of turnover. There are sometimes a few quiet months and then all of a sudden it is incredibly busy. The 11 year statistic shows a steady trend up.
Is the business VAT Registered?
The business is Vat registered
What VAT documentation is on file?
Up to date Vat reports are available.
Are there up-to-date Management Accounts available?
All Accounting is up-to-date and management accounts are available
What Balance Sheet and Income Statements are available?
Draft Annual Financial Statements 2019 are available, as prepared by the auditor
What percentage of the business is cash/credit?
All cash for export clothing and accessories apparel and workshop. Locally sold second hand vehicles can be financed, approx. 50-50
How could the profitability of the business be improved?
There is potential for more clothing and accessories apparel sales in store as well as online. A second and third technician in the workshop.
Is Seller finance available and for what amount?
What is the total staff complement?
There are currently 7 staff members
Give a breakdown of staff/ functions/ length of service?
1. Motorcycle sales and marketing (1 year) 2. Apparel sales and marketing (1,5 years) 3. Workshop technician (11 years) 4. Cleaner/general helper (4 years) 5. Bike detailer (3 years)
Do any receive special perks or incentives?
Performance based incentives from time to time.
Are they on contract?
Employed full time, registered PAYE and UIF
Do any have management potential?
Yes, two have potential. There is someone recommended for employment in the managerial position if the need arises. A professional with experience and a longstanding work relationship.
How involved is the Owner in running the business?
3-4 hours per day. Profitability could be improved if management would spend more time.
When does the current lease end?
28 Feb 2020, with option to extend. Very good relationship with the Landlord
Is there an option of renewal & what period?
Rental has been since Feb 2011 on an annual basis. Landlord is open for discussion
What is the annual escalation %?
What are the trading hours?
Mo-Fri 08.30-17.00 Sat 08.30 â 13.00 Sunday and public holidays closed
What is the square meters of the business?
Is a copy of the lease available?
A copy of the lease is available
Do you require a licence?
The business has the following licenses - second hand goods license - MIB (vehicle manufacturer, importer, builder) license - new and second hand vehicle exporters license
What lease deposit and/or other surety is required?
Lease deposit equal to one month rent
What are the main assets of the business?
An up to date asset list is on file
What is their overall condition?
Good and well maintained by own staff
Do any require repairing?
How have they been valued ?
Assets have been valued at current market value by the owner
Which assets are on lease/HP and with whom?
All assets are free hold except for one article that will be freehold in September
Are they presently insured?
Insurance is in place
The basic strength is the focus on upmarket clientele through status brands like Harley-Davidson and BMW and its location in an elite, upmarket North Coast suburb. Uniqueness of the business attracts clients from all over the country. Many holidaymakers come to visit and shop when in this area. Due to the relatively small size of the scene and itâs very social nature, the business and itâs good name is well known amongst thousands of motorcyclists countrywide. The client database has around 3000 entries, the separate workshop client database around 700. The shop does well in good economic times as well as in bad economic times due to itâs positioning in the market relative to licensed franchise dealerships.
Due to it's nature in the luxury motorcycle industry, business can be quite volatile in terms of turnover. There is sometimes a few quiet months and then all of a sudden it gets very busy.
A great opportunity would be to open a motorcycle themed cafe/bar next to the business. Employ an additional mechanic for the workshop.
No threats perceived.
What is the reason for the sale?
Owner seeks capital for another business opportunity.
Why is this a good business?
This is a profitable, established, low risk business, but it also can provide a relaxed lifestyle for the owner whilst pursuing his passion and creating some elaborate dreams in his own workshop, like custom bikes or drag racers
What is the price plus stock and the profit?
The asking price of the business is R1 952 389, which includes assets and stock. The owner is also negotiable on the price of the business should the purchaser choose not to include a full workshop facility. There are three options that may appeal to a prospective buyer.
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