Fully describe the business's activities?
30 years of trading! Biltong shop in busy centre in Randburg. Good foot traffic. Centre is surrounded by offices and has a component of residential. All the major retailers are represented in the centre: Pick 'n Pay, Dischem, Mr Price, Mr Price Home, Shoprite etc.
How long has the business been established?
The business has been established for 30 years - since 1990.
How long has the owner had the business?
The current owner has had the business for 9 years - since 2011.
How does the business operate on a daily basis?
Owner or wife open and shut the store. Owner makes all biltong on-site. This area is large enough (and has the equipment) to use as the factory to produce for and to sell to other biltong stores in the area or further afield. Or if smaller kiosks are opened in other centres as part of an expansion/growth plan then this store can be the production centre.
How are the clients attracted to the business?
Website, UberEats, part of the Multichoice/Dstv Rewards programme for all staff of Multichoice/Dstv (Multichoice Head Office is close by) This gives their staff discounts for purchases from this biltong shop. WhatsApp groups announcing specials etc are used very effectively.
Does the business have any contract work?
None, but a number of businesses in the area order on a regular basis and have done so for a number of years. This is an area that can be grown nicely without too much effort.
What competition exists?
None in the immediate area.
What are the seasonal trends?
The store closes for two weeks in December but that is by choice.
Are there up-to-date Management Accounts available?
Yes, these are available.
What percentage of the business is cash/credit?
100% of the business income is via cash or card.
How could the profitability of the business be improved?
Ladies (casuals) selling into the offices and office parks in the area on a daily basis would see instant results.
What is the total staff complement?
The owner and his wife run the store and a casual lady employee assists with sales outside of the store.
Give a breakdown of staff/ functions/ length of service?
Owner makes all biltong and dry wors on site. Wife assists in store. Casual employee sells/delivers in the centre and immediate area when required.
How involved is the Owner in running the business?
The owner runs the business and manufactures all biltong and dry wors.
When does the current lease end?
The current lease ends in October 2020 but is renewable.
Is there an option of renewal & what period?
Yes. Negotiable. The landlords would like to really keep this business in the centre as it has been there for 30 years.
What is the annual escalation %?
Currently 10% but in current market it is probably negotiable.
What are the trading hours?
Monday to Friday: 900 am to 5.00 pm. Saturday: 9.00 am to 1.00 pm.
What is the square meters of the business?
Approximately 44 square meters.
Is a copy of the lease available?
Yes, a copy of the lease is available.
Do you require a licence?
Normal Health Certificate which is in place.
What lease deposit and/or other surety is required?
Current owner has paid one month's deposit.
What are the main assets of the business?
Biltong Dryer, Cutters, Mincers, Fillers, Double Door Fridge, Cutting Tables, Electric Slicers, Shopfittings, Fans.
What is their overall condition?
Very good to excellent.
Do any require repairing?
No, those that need servicing are done on time.
How have they been valued ?
Net realisable value - all part of the sale of the business.
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes, business is currently insured through Outsurance Business.
The store has been in operation in the centre for 30 years and is well-known. Very good regular and loyal clients. Recipes are part of sale. Training will be provided by current owner if needed.
General economic conditions can play a part.
The factory/production centre can be used to supply other biltong shops, businesses in the area. Opening of kiosks in other centres with production based here.
None really - everyone loves biltong and business is always ongoing.
What is the reason for the sale?
The owners are relocating to their home in the Kruger National Park area with a new business opportunity opening up for them.
Why is this a good business?
History of 30 years with loyal clients. Excellent recipes are part of the sale. Established but new owner can grow from here if they so wish. Training provided by current owner if needed.
What is the price plus stock and the profit?
The asking price of the business is R550 000 which includes approximately R20 000 in stock.
Annual Turnover Amount between R 500 thousand and R 6 million