Fully describe the business's activities?
The Business manufactures and distributes cosmetic products , in particular Perfumes. Business owner has 40 years experience in the Cosmetics industry.
How long has the business been established?
Established in 2017
How does the business operate on a daily basis?
The manufacturing of the products takes place at the owners property, Distribution takes place by courier.
How are the clients attracted to the business?
Direct marketing is carried out.
What Advertising/Marketing is carried out?
Only direct marketing at present , online marketing represent an opportunity for growth.
Are there up-to-date Management Accounts available?
Yes, detailed management accounts are avaialable.
What percentage of the business is cash/credit?
All sales are cash at present.
How could the profitability of the business be improved?
Online marketing will improve sales 3 rd Party manufacturing will also increase sales.
Who is the Owner/Landlord?
The Seller owns the property. The Seller offers a 30 % stake in die property , if the Investor pays R 550 000 -00(not R 250 000),this will ensure that the buyer has no risk ,as the value of the property will cover the investment.
Do you require a licence?
No licenses are required to operate the business
What are the main assets of the business?
What is their overall condition?
All equipment is in fair working order.
The profit margin on the product is high (72%). The current Sales/Profit figures were attained by the Owner working alone. The 30 % stake in the property , is equal in value to the investment ( R 550 000-00) , thus ensuring that the Buyer has no risk. A portion of the investment amount ( R 250 000-00) will be re invested by the Seller into the business , to finance the expansion of the business.
The Seller needs a Partner to assist in the operation and future expansion of the business. Several retailers ( pharmacies) have expressed an interest in selling the product on an ongoing basis.
No threats could be identified
What is the reason for the sale?
The owner needs a partner to assist in the operation and expansion of the business.
Why is this a good business?
The profit margin on the manufacture product is high (72%). The Seller offers a share in the business property that is equal to the investment amount, ensuring that the buyer has no financial risk. The current profit is excellent considering that is was achieved by the Seller working alone.
What is the price plus stock and the net profit?
R 250 000-00 (including stock) , R 550 000-00 (30% share in Property) R 51,172.00 gross profit per month
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