Fully describe the business's activities?
Small work-from-home opportunity, ideal for a stay-at-home mom who would like to generate an extra income. The franchisee is responsible for the selling of advertising space for a kids-friendly newsletter that gets distributed to the local schools and private schools in your area. Easy to operate business, you can do the design yourself or outsource this responsibility. Your main focus will be sales. The owner has a large database of existing clients. There is room for growth in the business, whilst keeping the overheads low.
How long has the business been established?
The owner started the business in 2015 and the business is part of a well-known franchise group.
How does the business operate on a daily basis?
This is an owner-run operation. There's no need to employ any additional staff. The owner focuses on the sale of advertising space for the monthly newsletter. Advertisers can choose between monthly packages or once of packages. The owner is responsible for the layout and design of the newsletter, a responsibility that can be outsourced. The owner also personally delivers the newsletters on a monthly basis to the surrounding schools.
How are the clients attracted to the business?
The owner has a large database of existing clients which most are also returning clients who advertise on a regular basis.
What Advertising/Marketing is carried out?
The Franchisor has a website advertising their services, the advertisers and schools they are distributing to. They also have a social media page. Most of the clients are familiar with the business and their services.
Does the business have any contract work?
An owner can decide to sign annual contracts with advertisers. There are also 3-months contracts which advertisers sign and they get a small discount on the advertising fee.
What competition exists?
There are two other competitors in the same industry. They however work on a different business model.
What are the seasonal trends?
May - August tends to be less active months.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The owner provided Aldes with the Last 3 years sales figures and average expenses for the business.
What percentage of the business is cash/credit?
The advertisers pay via EFT.
How could the profitability of the business be improved?
By selling more advertising space, which is easily achievable.
Is Seller finance available and for what amount?
What is the total staff complement?
This is an owner run operation and there is no need to employ any additional staff.
How involved is the Owner in running the business?
The owner spends a couple of hours a day in the business, focusing on sales, client feedback, admin and designing the newsletter.
When does the current lease end?
This is a work-from-home opportunity.
- Easy to operate the business - Low Overheads - Scope for growth - Work from home opportunity - Ideal for a stay-at-home mom - Well-known franchise - with low franchise fees - Good network
A new owner should be actively involved in the business activities to sustain and grow the business.
- There is an opportunity to increase the sales for the business without increasing the expenses. - The current owner has assembled a growth plan for a prospective buyer.
Keep an eye on the competition and keep up good service delivery.
What is the reason for the sale?
The owner and her family are immigrating.
Why is this a good business?
This is a great business for a stay-at-home mom who would like to generate extra income and still have the flexibility to be involved in her kids' daily activities. This business has a large database of advertisers and she has a good footprint in her area. Sales can easily be increased without increasing overheads. Good Franchise which is well-known by many pre-schools.
What is the price plus stock and the profit?
Business is listed for R110 000 including the franchise joining fee of R15 000
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