Fully describe the business's activities?
A Digital Marketing/SEO, web design and development and hosting company. Products and services include: Hosting, Domain Registration, Hosting/e-mails, SEO and Digital Marketing Strategy Management, Graphic Design, Brand Design, WordPress Web Development, Website Maintenance, Website Design, Search Engine Marketing, Search Engine Optimisation, PPC - GoogleAdwords, Social Media Marketing, CRM Software Development, e-Commerce Websites, Responsive Web Design.
How long has the business been established?
The business was established in 2004 by the owner and has therefore been operating for 16 years.
How does the business operate on a daily basis?
This business can be operated by 1 person, being the owner, that has strengths as a web developer who also undertakes the admin, graphic design, and client liaison functions. Below is a breakdown of how activities are currently carried out on a per day/week and month basis. WEBSITE MAINTENANCE â¢ Adhoc client update requests for website changes, (text, images, new pages etc) 0-2 hours per day depending on client requests. â¢ WordPress updates as and when required. 5-10 hours per month depending on plugin updates. â¢ SEO Work & Management of Google AdWords and FB campaigns for clients. 4 hours per day â¢ Client liaison 0-2 hours per day SERVER MANAGEMENT â¢ Very little work here as the servers are expertly managed by engineers in the USA and UK through a reseller SLA â¢ 1-2 hours per week for setting up new email accounts and new domain names using WHM and Cpanel / general server housekeeping. ADMIN â¢ Billing & invoicing / accounting done via excel manually. Debit order runs through ABSA integrator. 3-4 debit order runs per month. 1-2hours per day
How are the clients attracted to the business?
The company has a website and new clients are largely attracted by word-of-mouth and referrals.
What Advertising/Marketing is carried out?
None but this is an area that can assist in the growth of the business.
Does the business have any contract work?
The business has monthly contracts with clients and the revenue is largely annuity-type income, mostly by debit order.
What competition exists?
Existing clients do not look to move to competitors generally in this industry. If they are happy with the service given it is the norm that clients do not switch as they have to then move their website and emails etc.
What are the seasonal trends?
None to mention. The industry is pretty constant apart from December when business, in general, slows down and the custom has been to shut over Christmas and monitor urgent client requests of which there are few.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
Normal VAT returns and reconciliations where necessary.
Are there up-to-date Management Accounts available?
Yes, there are management accounts up to February 2020.
What percentage of the business is cash/credit?
A large part of the business's revenue is derived by way of monthly debit order and a small proportion of clients pay by EFT.
How could the profitability of the business be improved?
A consistent marketing effort being implemented will definitely help bring in new business and increase profitability.
What is the total staff complement?
The business, at its current size, is capable of being run by one person who has strengths as a web developer and also undertakes the billing, graphic design and client liaison. However with growth a web developer etc may have to be employed or sub-contracted to the business.
How involved is the Owner in running the business?
The owner is involved in the business on a daily business.
What are the main assets of the business?
As this is an online business most of the equipment is inexpensive and therefore negligible to include in the sale of the business.
The business has a strong track record and happy clients with an extremely low cancellation ratio. Server management is optimal with a history of 99% uptime.
Lack of a marketing initiative. Once this is in place the business can grow exponentially.
There are major growth opportunities with this business. The long-standing goodwill of the business has been in the market place since 2004 is a major plus. An active marketing campaign and dedicated sales initiative will further bolster the growth opportunities in this business.
Website and server security. In this industry server and website integrity is of utmost importance and can never be ignored.
What is the reason for the sale?
The owner wishes to move into the educational sector full time as this is more closely aligned with his passion.
Why is this a good business?
This business (est in 2004) has provided the owner with a decent financial reward for some 16 years. The servers are squeaky clean and clients are happy. There is plenty of scopes to grow the business beyond its current figures with minimal effort. The seller would continue to be an ambassador and refer new business to the new owner into the future as his primary focus will be within the educational industry. There would also be a hands-on handover/assistance for at least a month for the new owner.
What is the price plus stock and the profit?
The asking price of the business is R2.30 million. The adjusted Net Profit of the business is R990 739 per annum.
Annual Turnover Amount between R 500 thousand and R 6 million