Fully describe the business's activities?
This is a modern-day florist trading in fresh flower arrangements and strong sales of artificial flowers, which are growing year on year, complemented by accessories. One of their specialties is being able to customise floral decor for birthdays, weddings, funerals, contracts, homes and functions. The remarkable attention to detail is an important factor in the success of this florist. Delivery service of 6 days a week is an added advantage, travelling as far as Westville and Ballito.
How long has the business been established?
Established in 2012 - 8 years.
How long has the owner had the business?
Since November 2015.
How does the business operate on a daily basis?
The business has walk-in customers and supplies to 34 businesses in the area. It also attracts business through its Facebook page and via its website.
How are the clients attracted to the business?
The business is situated in a prominent position at a popular shopping centre.
What Advertising/Marketing is carried out?
The business has a website and is also on Facebook.
Does the business have any contract work?
The business has many regular customers, including motor dealerships, attorney firms, medical practitioners, banks and other businesses. There is huge potential to increase this part of the business.
What competition exists?
There are two other florists in the area.
What are the seasonal trends?
This florist is busy throughout the year and is very busy around Valentines Day and Mothers Day. The annual Christmas season is good in some years, although this tends to fluctuate from year to year.
Is the business VAT Registered?
What VAT documentation is on file?
Latest Vat documentation is on file.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Management accounts for the period March 2019 to February 2020 with corresponding figures for the peroid March 2018 to February 2019.
What percentage of the business is cash/credit?
Cash sales is approximately 25% and credit/debit card sales is approximately 75%.
What is the age analysis of the debtors book?
The Debtors book consists mostly of weekly contract deliveries and is very low as collections are kept up to date.
How could the profitability of the business be improved?
The business could be increased substantially with a new owner giving their full attention and focusing on contractual business, hiring out and introducing additional items.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
There are 4 permanent staff members and 3 temporary staff members, excluding the owner.
Give a breakdown of staff/ functions/ length of service?
The owner - since taking ownership in 2015 Florist - 20 years experience Florist - 17 years experience Manageress - 15 years experience Driver - 10 years experience
Do any receive special perks or incentives?
Yes, they receive a bonus around Christmas and Valentines Day.
Are they on contract?
Do any have management potential?
There is a manageress who has shown good capability and can attend to all matters in the absence of the owner.
How involved is the Owner in running the business?
The owner is involved in the business on a daily basis but also has to spend time on other business interests; also does a lot the buying from suppliers although the florist and driver jointly do some buying three times per week.
When does the current lease end?
The current lease ends in October 2021.
Is there an option of renewal & what period?
Yes, for a period of between 3 and 5 years.
What is the annual escalation %?
Escalation of 7%.
What are the trading hours?
Monday to Friday = 09:00 to 18:00 Saturday = 09:00 to 16:00 Sunday = 09:00 to 15:00
What is the square meters of the business?
Approximately 40 square meters.
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
R50 550 deposit and Lessee's surety.
What are the main assets of the business?
A full asset list is available on request.
Are any items not included in the sale?
What is their overall condition?
Good to very good.
Do any require repairing?
How have they been valued ?
Owner has conducted their own valuation of R441 300 which includes a delivery vehicle valued at R180 000.
Which assets are on lease/HP and with whom?
All assets are paid for in full.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The delivery vehicle is insured.
This business is situated in a very popular shopping centre which offers ample free parking. It has been in business for 8 years so it is well established and it dominates the area because there is no direct competition in the area. It offers fresh and artificial flowers and the experienced florists are very talented at arranging the flowers. The driver knows the area well and is very efficient so he can do more deliveries than most.
No apparent weaknesses.
The surrounding area is growing with businesses opening up and therefore a great opportunity to increase contracts to offices and hotels. The business is situated close to affluent homes and gated estates. A further opportunity exists with increased online sales via Facebook, website and other social media.
Another florist could open in the area but not in the same centre and they would find it difficult to compete with such a popular and established florist.
What is the reason for the sale?
The current owner has other business interests and travels regularly and therefore finds it difficult to allocate more time to this one in order for it to reach its full potential.
Why is this a good business?
This is an established business with experienced and loyal staff. There is good management and operating systems in place. Sales are consistent all year round with bumper sales around Valentines Day and Mothers Day. Contract business is good and has great potential to increase substantially.
What is the price plus stock and the profit?
The selling price is R1 200 000 including stock of approximately R188 715. Net profit is R417 240 for the year ended February 2020.
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