Fully describe the business's activities?
The business operates as a Laundry/Laundrette of many years standing . Drop-Off and Self-Service + Dry Cleaning.
How long has the business been established?
The business was established in 1990 and has therefore been operating in the area for 30 years.
How long has the owner had the business?
The current owner has owned the business since 2005 - 15 years.
How does the business operate on a daily basis?
The security guard of the building opens at 7.00 am. 3 x Staff arrive at 7.30 am. Owner comes in at about 8.00 am. Owner oversees during the day but need not be there full time.
How are the clients attracted to the business?
A number of the clients are long-standing customers so word-of-mouth plays a part and also because the business has been in the area for 30 years it is well-known.
What Advertising/Marketing is carried out?
None. This is an area that can make an immediate impact to both top- and bottom-line. There are nice residential areas on either side of the business, there are also numerous restaurants and fast-food places as well as guest houses in the area which can all be lobbied for business.
Does the business have any contract work?
Although not formal contracts, they have some guest houses, hairdressers, beauty parlours and nail bars who use their services every daily/weekly and are billed monthly.
What competition exists?
There are two other laundries but they are about 5 kms away and do not affect this business.
What are the seasonal trends?
December and January is busier and school holidays in general are also busy but generally spread nicely over the year.
Is the business VAT Registered?
No, the business is below the VAT threshold and therefore does not have to be registered for VAT.
Are there up-to-date Management Accounts available?
Yes, there are management accounts to February 2020.
What Balance Sheet and Income Statements are available?
These are available to February 2019.
What percentage of the business is cash/credit?
80% of the business is cash and about 20% is EFT.
What is the age analysis of the debtors book?
There is one 30-day account. All the rest are at current on the debtors list.
How could the profitability of the business be improved?
More contract work from Guest Houses, Hairdressers, Beauty Parlours and Nail Bars etc in the area. A tailor/garment alterations, shoe repair service and a key bar/key cutting service will all add to the attraction of people to the store.
What is the total staff complement?
There 3 x members of staff plus the owner.
Give a breakdown of staff/ functions/ length of service?
Each staff member has their own customers and they service those clients. All 3 do washing and ironing. Average of about 10 years service by staff members.
Are they on contract?
Yes, they have letters of appointment.
How involved is the Owner in running the business?
Owner comes in everyday but the business and staff operates on its own.
When does the current lease end?
Month-to-month lease currently but landlords are happy to negotiate a new lease with new owners.
Is there an option of renewal & what period?
To be negotiated with the landlord but normally 3 to 5 years.
What is the annual escalation %?
Currently at 10% but this can be negotiated.
What are the trading hours?
Mon - Fri: 7.30 am (Self-service 7.00 am) to 5.30 pm (Self-service to 8.30 pm) - Security guard of building locks up.
What is the square meters of the business?
Approximately 300 square meters.
Do you require a licence?
No licence is required to run this business.
What lease deposit and/or other surety is required?
Currently one month.
What are the main assets of the business?
10 x Washing Machines, 3 x Big Dryers, 2 x Small Dryers, Irons, Ironing Boards, Office Desk and Chairs, Shelving and Racking.
What is their overall condition?
10 x Washing Machines and the Dryers are in good order. Serviced regularly and as needed.
How have they been valued ?
Net realisable value.
Which assets are on lease/HP and with whom?
No assets are on lease or HP.
Are they presently insured?
Yes, business and assets are insured.
History of 30 years in the area, well known, knowledgeable staff. Known for exellent service. Long-standing customers.
Lack of marketing. This would make an immediate difference to the business at very little cost initially.
Bringing in a tailor/alterations person, shoe repairs section, key bar and key cutting service. Drop-off and collection to clients as an added-value service will attract more business.
What is the reason for the sale?
The owner wishes to retire.
Why is this a good business?
This business need not take up every hour of your day - you can run this business whilst running other businesses. Has a good reputation for service. Has excellent growth potential with some decent marketing and addition of tailor/alterations service, shoe repairs and key bar and key-cutting service. Offering more guest houses, restaurants, fast food places and beauty parlours and nail bars their services will see quick increases to top- and bottom-line.
What is the price plus stock and the profit?
The asking price for the business is R635 000.
Annual Turnover Amount between R 500 thousand and R 6 million