Fully describe the business's activities?
Situated in a busy Mall in the Berea area just outside the CBD of Durban. Established in 2016 and has developed into a vibrant Gift shop with tobocco products, ice cold cool drinks attracting regular patrons to the shop.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The shop is open 7 days a week and adheres to the shopping hours prescribed by the Mall administrators. There is a shop assistant who manages the shop and the owner, or her family, operate on alternate weekends in order to give the assistant "time off"
How are the clients attracted to the business?
Word of mouth referrals are the only means of increasing trade in the shop. Many local suburban residents utilize the shop as a quick replenishment of their tobacco requirements. Very popular with the locals.
What Advertising/Marketing is carried out?
The Landlord advertises on a regular basis on various platforms or by bill board displays, within the Mall levels.
Does the business have any contract work?
What competition exists?
This is the only tobacconist in the Mall and the nearest opposition is in a few other Malls in the adjacent suburbs.
What are the seasonal trends?
The Christmas trade escalates the revenue and profitability as many gifts are sold during this annual holiday.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes. The owner will discuss these with any serious potential buyer, once the two parties have met.
What Balance Sheet and Income Statements are available?
The owner has all the financial information and asset list.
What percentage of the business is cash/credit?
Cash takings is approximately 70% of the monthly turnover. The balance is via credit card transactions.
What is the age analysis of the debtors book?
Nil as there are no accounts.
How could the profitability of the business be improved?
Marketing to a larger residential suburb could attract more people coming to the Mall for many different opportunities as there are chain stores and restaurants active within the Mall.
Is Seller finance available and for what amount?
What is the total staff complement?
There is one sales assistant, who is out of her probation period and is very good at managing the shop.
Give a breakdown of staff/ functions/ length of service?
Shop is a popular outlet and requires at least one sales person to be available every day. The assistant has been with the owner for the past 4 months and is well respected.
Do any receive special perks or incentives?
Are they on contract?
The assistant will be receiving her Letter of Appointment in March 2020
Do any have management potential?
The assistant manages the shop on a daily basis.
How involved is the Owner in running the business?
The owner and her family visit the shop on a daily basis and control all the cash banking etc. The owner arranges relief staff for the shop for every second weekend and when it is necessary during the week.
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-Fri 0900 -1800 hrs Sat 0800-1700 hrs Sun 0900-1400 hrs
What is the square meters of the business?
32 square meters
Who is the Owner/Landlord?
Is a copy of the lease available?
Yes and is held by the owner
Do you require a licence?
What lease deposit and/or other surety is required?
I month's rent as a deposit.
What are the main assets of the business?
Assets are shop counters, a softwware system, cash till, lighting, fridges, window display shelving and interior shelving.
Are any items not included in the sale?
What is their overall condition?
Very good and are kept clean and in working order.
Do any require repairing?
How have they been valued ?
They have been valued at replacement cost.
Which assets are on lease/HP and with whom?
All assets are free standing.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Very popular shop with a quality tobacco related product range and a relevent gift range. Shopping Mall is the largest in the suburb and attracts a large volumn of "foot traffic" Busy every day of the week.
There is no particular weakness as the nearest tobacconist is kilometers away. Range of products is well known so is in demand.
The variety of the product range can be increased or altered if the new owner decides to offer different products.
What is the reason for the sale?
The owner wishes to get involved in a new venture.
Why is this a good business?
Busy every day and is well known for quality products at a reasonable price range.
What is the price plus stock and the profit?
The Selling Price is R1,200,000. plus stock. The average monthly profit is R45000 per month.
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