Fully describe the business's activities?
A fully functional nursery school within an office block with a good split of in house and outside kids. 4 x classrooms - 3 months to 1 year; 1 to 2 years; 2 to 4 years and 5 to 6 years. Maximum amount of kids allowed per license is 96
How long has the business been established?
The business was established 5 years ago by the owner.
How does the business operate on a daily basis?
Staff is split in two rotating shifts who are in charge of opening and closing the school.
How are the clients attracted to the business?
Access to the whole office blocks addresses allows the school to send out marketing emails, holiday programs and the like.
What Advertising/Marketing is carried out?
Website and Google Adwords
What competition exists?
Two other schools in the vicinity both are more expensive, one is only half day.
What are the seasonal trends?
How did the Covid-19 pandemic impact the business turnover / daily operations?
Before lockdown 52 permanent kids and 7 casual. After lockdown 38 permanent kids
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Everything is ready for reopening according to rules.
Is the business VAT Registered?
Educational institutions is exempt from paying VAT
Are there up-to-date Management Accounts available?
Yes income and expenses for the month March 2019 to February 2020 is on file
What Balance Sheet and Income Statements are available?
Financials for the year ending February 2020 is available
What percentage of the business is cash/credit?
No cash. Pay one month in advance.
How could the profitability of the business be improved?
Growing the numbers
Is Seller finance available and for what amount?
Seller will consider financing a suitable candidate who has a 70% deposit.
What is the total staff complement?
10 x permanent staff 3 x casual workers
Give a breakdown of staff/ functions/ length of service?
Permanent staff: 2 x Teachers; 1 Registered Nurse working with the babies; 7 x Assistants All permanent staff have been with the business since inception Casual staff: 3 x Cleaners/General workers Casual staff have been with the business for one year.
Do any receive special perks or incentives?
Are they on contract?
Permanent staff are on contract
Do any have management potential?
Owner has identified two staff members whom she is comfortable with to oversee the day to day operations
How involved is the Owner in running the business?
Owner is at the school for around three hours per day
Any special arrangements for the staff related to the Covid-19 pandemic?
All permanent staff are on UIF. The business continued paying salaries during lockdown.
When does the current lease end?
3 year lease ending July 2023
Is there an option of renewal & what period?
A further 3 year option to renew.
What is the annual escalation %?
What are the trading hours?
Monday to Friday from 06:45 to 17:45
What is the square meters of the business?
Is a copy of the lease available?
Yes, a copy is available
Do you require a licence?
All food and safety licenses are in place.
What lease deposit and/or other surety is required?
To be negotiated with the landlord
What are the main assets of the business?
Note that all assets belong to the landlord
Are any items not included in the sale?
What is their overall condition?
Everything is in a good and working order.
Are they presently insured?
Yes, comprehensive insurance is in place
A good reputation. Cost effective in a very expensive area. Excellent security Captive market and so convenient for parents working in the office block Also accommodate outside kids Great staff
Taking in more kids from outside
What is the reason for the sale?
The owner has operated many nursery schools over the year and is now tired and ready to settle down.
Why is this a good business?
Fully licensed with great staff and all curriculum in place.
What is the price plus stock and the profit?
Selling price of R990 000
Annual Turnover Amount between R 500 thousand and R 6 million