Fully describe the business's activities?
This business sells fashion clothing to a middle and upmarket clientele. It is based in a well-known shopping centre. Over the years it has had broad support from those interested in the latest fashion trends and has attracted a more sophisticated clientele. The Boutique stocks from the most elegant labels in the world, including South Africa, as they are also a member of the Proudly South African Label. The latter promotes and lobbies for the development and growth of South African manufactured products and services that seek to create employment opportunities and stimulate economic growth. They also own a label that is registered in South Africa.
How long has the business been established?
The Business has been in existence for the past ten years.
How long has the owner had the business?
How does the business operate on a daily basis?
The Business is open six days a week to assist clients with their different tastes and fashion enquiries. They can create any garment that customers are interested in to fit in with their unique requirements and taste. This ability to make customized clothing from scratch enables them to develop proper fitting garments independent of the body size or shape of their customers. It is a unique service that the Boutique offers to its customers. The stock is carefully monitored regularly to avoid excess and redundant inventory.
How are the clients attracted to the business?
The business is situated in a bustling shopping mall and make use of the website and social media of the mall.
What Advertising/Marketing is carried out?
The advertising is done by the mall and on social media.
What competition exists?
There are other clothing boutiques in the mall, but this shop is well satiated in the mall.
What are the seasonal trends?
This business sales peak yearly during December months.
Is the business VAT Registered?
This Business is a VAT registered vendor.
What VAT documentation is on file?
VAT documentation is available to committed Buyers during the due diligence prcess .
Are there up-to-date Management Accounts available?
Management Accounts up to 31 Aug 2019. Up-to-date Management Accounts will be available soon.
What Balance Sheet and Income Statements are available?
Balance Sheet and Income Statements are available for Feb 2018 and Aug 2019.
What percentage of the business is cash/credit?
All sales is cash paid by Debit or Credit Cards.
What is the total staff complement?
The total staff complement is three.
Give a breakdown of staff/ functions/ length of service?
1 x Manager (Owner) 1 x Sales 1 x Administrator
Do any receive special perks or incentives?
The Salesperson receives a commission if target is achieved.
Are they on contract?
Staff are appointed by contract.
Do any have management potential?
The staff have management potential.
How involved is the Owner in running the business?
The one owner is 100% involved in running the business.
Any special arrangements for the staff related to the Covid-19 pandemic?
The Business was closed due the Covid-19.
When does the current lease end?
The current lease is for five years, with four years to go.
Is there an option of renewal & what period?
There is an option of renewal and the period is negotiable.
What is the annual escalation %?
The annual escalation is 10%
What are the trading hours?
The trading hours is Mon to Sat 9am to 6pm.
What is the square meters of the business?
The square meters of the business are 34m2.
Is a copy of the lease available?
A copy of the lease will be available to serious Buyers.
Do you require a licence?
No licence is required to run this business.
What lease deposit and/or other surety is required?
The lease deposit required is R 67 000.00.
What are the main assets of the business?
The main assets of the business are the shop fittings.
What is their overall condition?
The interior is in an excellent condition.
How have they been valued ?
The shop fitting cost is estimate at current market value.
Which assets are on lease/HP and with whom?
Only the speed point with Standard Bank.
Will Seller settle or Buyer to take over?
The Buyer have to take over the speed point.
Are they presently insured?
The business is insured.
- The shop is very well positioned in a recently upgraded mall; - The Boutique offers a unique service by designing garments in the shop; - The Boutique stock from the finest labels in the world including South Africa.
- The shop is small and at its current position there is no space for expansion. -
- The Boutique brand can be expanded by opening more shops in shopping other malls.
- The current economy in SA; - The negative effect of Covid-19 on business.
What is the reason for the sale?
The Owner runs another business which takes too much of his time to put enough effort into this business to be successful.
Why is this a good business?
It is a successful/ profitable Boutique which profitability will improve with increased marketing.
What is the price plus stock and the profit?
The selling price of the business is R 648 000.00 including stock of R 100 000.00
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