Fully describe the business's activities?
Operating from a shop within a centre in the Northern Suburbs and making made to order speciality cakes, cupcakes, pops, ice cream cakes, donuts, biscuits and more for weddings, baby showers or any special occasion. The shop also produces a daily range of cakes for the walk in trade. An online ordering system also offers up to 3000 variants of cakes that can be ordered, prepaid and then collected. This is a relatively new side to the business and it is still in the growing phase.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
With a great online presence, order are baked on request as well as daily stock for the shop. Staff and bakers work from premises in shopping centre.
How are the clients attracted to the business?
Website, Face Book, Leaflets, Referrals and word of mouth.
What Advertising/Marketing is carried out?
Social media and active website. Leaflets also handed out.
Does the business have any contract work?
No, but orders are delivered weekly to tea gardens, restaurants and golf estates.
What competition exists?
Home industries and individual home based bakers
What are the seasonal trends?
December is quietest and the shop usually closes during that period.
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?
No credit, All COD or prepaid on order
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Increase online orders. Canvass local businesses with leaflets.
Is Seller finance available and for what amount?
What is the total staff complement?
9 fulltime plus one casual on Saturdays and part time driver for deliveries
Give a breakdown of staff/ functions/ length of service?
Avaialble for due diligence
Do any receive special perks or incentives?
Occasional bonuses based on special orders
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
Involved in daily operations and responds to emails and prepares marketing
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?
Mon to Fri 8 am to 5 pm Sat 7 am to 2 pm Closed Sundays
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
Yes - Dept of Health
What lease deposit and/or other surety is required?
One month's rental currently.
What are the main assets of the business?
Baking ovens, catering equipment, mixers etc and all necessary equipment for baking and decorating cakes.
Are any items not included in the sale?
What is their overall condition?
All operational and in working order
Do any require repairing?
No - serviced when necessary
How have they been valued ?
Estimated market value
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Well established for 8 years. Well designed website. Largest online bakery in SA. Delivery available. Quality of product with talented decorators and committed team. Strong Face Book following of over 40,000 people of all income groups
Lack of good P.O.S system Minimal storage space
Big demand for printed and custom cakes to be exploited Grow product line by offering gluten and egg free products Potential to expand production for supply to smaller local shops Could franchise the concept
No back up in the event of load shedding
What is the reason for the sale?
Owner's husband's business expanding and requiring for assistance from spouse. Cannot be involved in both businesses.
Why is this a good business?
Well known and established. Cash business with no credit granted to customers
What is the price plus stock and the net profit?
R1.6m lock stock and barrel. Net profit averages R78.79k per month over last twelve months and R80k per month over last six months.
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