Fully describe the business's activities?
The business is a home bakery of specialty sourdough bread. The bread is made in the evening and delivered first thing the next morning. Customers comprise local restaurants and shops.
How long has the business been established?
How long has the owner had the business?
The owner has had the business since inception.
How does the business operate on a daily basis?
Orders are received by telephone and baking begins in the afternoon and evening. The majority of orders are standing orders with existing customers. These orders are delivered between 7 and 8 the next morning.
How are the clients attracted to the business?
The business is trading at the maximum output that the current owner can handle and all potential new clients are turned away.
What Advertising/Marketing is carried out?
Very little marketing and advertising is done.
Does the business have any contract work?
The business enjoys recurring orders from existing clients, but no formal contracts are in place.
What competition exists?
While there are various bakeries and shops producing bread, this is a specialty product which the opposition bakeries cannot produce.
What are the seasonal trends?
There are no seasonal trends.
Is the business VAT Registered?
The business is not Vat registered.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
There are no management accounts. Financial performance has been gauged over a short time and extrapolated to a full year. The new buyer would be able to verify probable financial performance in discussions with the owner.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
The business only sells to cash customers.
What is the age analysis of the debtors book?
There is no debtors book.
How could the profitability of the business be improved?
For a new owner who can dedicate more time to the business, the potential is substantially more than is being achieved by the current owner who works full time in another business.
Is Seller finance available and for what amount?
Seller finance is not available.
What is the total staff complement?
Their is one employee who does all of the baking. The owner collects orders and does deliveries.
Give a breakdown of staff/ functions/ length of service?
The employee has been with the business since inception.
Do any receive special perks or incentives?
Are they on contract?
The employee has an employment contract.
Do any have management potential?
The employee cannot deliver the bread or liase with customers.
How involved is the Owner in running the business?
The owner is involved for 1 hour a day delivering bread before going to a full time job.
When does the current lease end?
The business operates out of the double garage of the owner and will need to be relocated as the current owner is selling their house and emigrating.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
The main assets of the business are baking ovens and a coldroom mounted on a trailer.
Are any items not included in the sale?
All items are included in the sale.
What is their overall condition?
All items are in good working condition.
Do any require repairing?
None require repairing.
How have they been valued ?
The assets have been valued at estimated replacement value.
Which assets are on lease/HP and with whom?
No assets are on hp.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The bakery makes a lovely product that has a very receptive market. The company has actively turned away regular orders that it cannot meet given its current owners other work commitments.
The bakery requires a double garage within which to operate.
The main opportunity is to simply fulfill the existing orders for the product. By expanding deliveries outside of its immediate surroundings, the turnover can be significantly improved. There is the possibility of baking new products.
Existing bakeries in supermarkets etc could also begin to bake this type of bread, however the time and skill requirements make this a highly unlikely possibility.
What is the reason for the sale?
The owners are emigrating and selling their house where the business is located.
Why is this a good business?
This is a wonderful opportunity for someone who wants to work from home for a few hours a day. Alternatively, this business could be tacked onto an existing catering type business.
What is the price plus stock and the profit?
The price is R280,000 plus stock.
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