Fully describe the business's activities?
The business is involved in the repair and servicing of Fridges, Stoves, Ovens, Tumble dryers, Washing machines, and Dish washers as well as the sale of spares for all these appliances. Machines are either delivered to them or they collect.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Custmers phone them to collect an appliance that is faulty or the appliance is delivered to the business. This is then repaired , returned or collected and payment received. The owner has built up a large amount of spares and repairs are performed using this stock or they buy in new repair parts.
How are the clients attracted to the business?
Advertising and by word of mouth.
What Advertising/Marketing is carried out?
Advertising in the media, news papers and on social media as well as on bill boards.
Does the business have any contract work?
What competition exists?
Competition exists but this business is so well established over 35 years that they have clientale that continuously return to them due mainly to the excellent service they receive. New clients are added on a daily basis.
What are the seasonal trends?
In summer, work on fridges increases while in winter it is tumble dryers. Otherwise it is fairly even business throughout the year.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
100% Cash - no debtors
How could the profitability of the business be improved?
There is so much scope that by more aggresive marketing the volume of business could be trebled.
Is Seller finance available and for what amount?
What is the total staff complement?
3 excluding the owner
Give a breakdown of staff/ functions/ length of service?
Gladys, the cleaning lady for 8 years - twice per week. 2 x Workers who do the repairs and servicing
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
100% involved .
When does the current lease end?
Is there an option of renewal & what period?
The lease is renewed annually
What is the annual escalation %?
What are the trading hours?
Monday to Friday : 8am to 5pm Saturday : 9am to 1pm
What is the square meters of the business?
+- 50 M2
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 assets are the tools required to repair and service appliances.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
Are they presently insured?
The 35 years that this business has been in the market resulting in them building up a large client base. Excellent service has ensured that clients always return to them and remain loyal. A large stock of spare parts has been built up by stripping old machines resulting in their Cost of Sales being extremely low. Loyal staff
There are no perceived weaknesses excepting that the owner is getting old and slowing down .
A young motivated person will be able to triple the turnover by actively marketing the business.
What is the reason for the sale?
The owner wishes to retire.
Why is this a good business?
Because it has rendered excellent service to its clients over 35 years, the client base has steadily increased and is now at a point where these clients can sustain the business at the current level. By going out and seeking new business a new owner will be in a position to increase turnover and profitability significantly.
What is the price plus stock and the profit?
Selling price : R 750 000 including stock Stock : R 350 000 Average monthly net Profit : R 32 460
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