Fully describe the business's activities?
The smartest way to buy and sell secondhand goods and make money out of pawn broking and personal loans.
How long has the business been established?
4 years, trading in its 5th year.
How long has the owner had the business?
The owner started the business.
How does the business operate on a daily basis?
Buy and sell secondhand goods and making money out of pawn broking and personal loans. Roughly 50% of the revenue and profits in the business is generated from retail (the selling of secondhand goods).
How are the clients attracted to the business?
By offering a very unique set of services and products, a leader in the industry with very little competition. The business is situated in a well known and established centre visible from a very busy main road to and from a major residential area/s and part of a larger trading area with more retail centres.
What Advertising/Marketing is carried out?
Well placed and highly visible external signage facing busy main road. Local Marketing Initiatives as well as National Campaigns. Strong focus on Digital campaigns which includes Facebook and WhatsApp. Printing and hand out of flyers in immediate residential and commercial / industrial areas.
What competition exists?
Non in the immediate trading / catchment area.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Business reopened under Level 4 and saw an increase in Retail Trade.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Full compliance to Covid-19 Regulation which includes daily recording of staff and customer temperatures and sanitising.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Current and previous financial periods.
What is the total staff complement?
7 staff members. (excluding a manager).
How involved is the Owner in running the business?
Partially, there is currently a manager in place on a fixed term contract basis.
What are the trading hours?
Monday to Friday 09:00 to 17:30 Saturdays 09:00 to 15:00 Sundays - Closed
What is the square meters of the business?
Do you require a licence?
Yes there are licences required, 2nd Hand Goods Licence and registration with the National Credit Regulator.
What are the main assets of the business?
- Shop-fitting (includes counters and shelving) - Computer Equipment and Point of Sale - Other Electrical Equipment - Signage
What is their overall condition?
Very good, almost Brand New.
- Recession Proof. - Ability to transact paperless and cashless.
What is the reason for the sale?
The Owner / Seller is preparing for retirement.
Why is this a good business?
- Established business. - Profitable and Positive Cash Flow. - Good Location / Trading Area. - Selling for close to 50% of what a similar business would cost to setup and start from new. - Fantastic option for someone looking to be their own boss. - Fantastic option for someone looking to trade in this sector without having to start the business from scratch.
What is the price plus stock and the profit?
- Selling for R2.3mil including stock in trade & loan books to a total of roughly R750 000. - Monthly Profit of R50 000 (this is before an owner or manager salary)
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