Fully describe the business's activities?
The beauty clinic offers a complete range of services including facials, nails, feet, laser treatments, non-surgical facelift treatments, permanent make-up, massages etc.
How long has the business been established?
The business was established in 1994.
How long has the owner had the business?
The current owner has owned the business since 2008.
How does the business operate on a daily basis?
The clinic is located in a busy mall. The clients phone the clinic to book appointments and then come in at the allotted time.
How are the clients attracted to the business?
The business has been in the same mall for many years and the vast majority of the business generated is from regular clients. The mall does provide visibility and new clients walk in to the clinic on a daily basis.
What Advertising/Marketing is carried out?
While advertising in local magazines is carried out on an ongoing basis, as is social media advertising, the need for extensive advertising is negated by the strong reputation for professional service and the location in the mall.
Does the business have any contract work?
There is no contract work but a substantial amount of repeat business.
What competition exists?
There is no competition in the actual mall but there are a number of people offering similar services in the area. None however have the advantages of location that the clinic has.
What are the seasonal trends?
There are no strong seasonal trends but May and June are quieter months.
Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
All historical information is on file.
Are there up-to-date Management Accounts available?
Accurate Management Accounts are available.
What Balance Sheet and Income Statements are available?
Financial Statements for the past 5 years are available.
What percentage of the business is cash/credit?
All customers pay at the conclusion of their treatment.
What is the age analysis of the debtors book?
There are only 3 accounts that are settled monthly.
How could the profitability of the business be improved?
The clinic has grown to meet demand and would continue to do so under a new owner. In addition, new services could be added to the menu. The clinic has a number of schools in the area and incentives to use the clinic for matric dances etc. would both increase turnover and introduce future clientele to the business.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
The total staff complement is 9 full time staff members including the owner and 2 part time staff members.
Give a breakdown of staff/ functions/ length of service?
1 Manager (Level 6 Therapist) 1 Admin Manager 1 Senior (Level 5) Therapist 3 Beauty (Level 4) Therapists 2 Nail and Massage (Level 3) Therapists 2 Casuals and 1 Cleaner
Do any receive special perks or incentives?
All staff receive an annual bonus.
Are they on contract?
All staff have employment contracts.
Do any have management potential?
One member of Staff is currently running the clinic. She has 8 years experience and is extremely competent.
How involved is the Owner in running the business?
The owner works 3 days a week but the manager runs it day to day.
When does the current lease end?
The current lease expires in July 2021 but is renewable.
Is there an option of renewal & what period?
Generally 5 to 6 years.
What is the annual escalation %?
Annual Escalation of 8%.
What are the trading hours?
Monday to Friday 8-5
What is the square meters of the business?
168 Square Meters
Who is the Owner/Landlord?
Urban Real Estate
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
This will be negotiated with the new owner.
What are the main assets of the business?
The assets include : a Tanning Bed, Laser Machine, LED Machine, 2 Non-Surgical Face Lift Machines, 3 BT Nanos, BT Dermabrasion machine, 5 Steamers, 6 Maglamps, Computers and various furniture.
Are any items not included in the sale?
All equipment is included in the sale.
What is their overall condition?
All equipment is in Good Working order.
Do any require repairing?
How have they been valued ?
The current value has been estimated by the owner.
Which assets are on lease/HP and with whom?
There is no equipment on lease.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
All equipment is insured.
A reputation for a quality and professional treatment have driven the success of this business and will continue to do so. This is due to well trained staff who are experienced. The location in a busy mall continually adds clients to an already long client list.
The business has a large client list who book appointments and cannot always give the walk in customers from the mall the service they require.
There are a range of treatments that could be added to the clinics offering.
There is always the threat of losing customers and staff to other clinics.
What is the reason for the sale?
The owner is having her second child in December and wishes to concentrate her efforts on her family.
Why is this a good business?
As a manager run business, it does not take a full time effort to run the business. The new owner can concentrate on continuing the growth of the business instead of being absorbed into day to day activities.
What is the price plus stock and the profit?
The clinic is selling for R2,500,000 excl stock which is currently sitting around R 250,000.
Annual Turnover Amount between R 500 thousand and R 6 million