Fully describe the business's activities?
The Manufacture, Market and Distribution of Artisanal Ice Cream.
How long has the business been established?
The business was established by the present owner in 2013.
How long has the owner had the business?
Sice its inception in 2013.
How does the business operate on a daily basis?
On day 1 : Purchasing of required stock and products and preparation is done Day 2: Production of required flavors Day 3: Deliveries of orders and replenishing stock levels as required in retail outlets
How are the clients attracted to the business?
Word of mouth advertising, social media, and website etc.
What Advertising/Marketing is carried out?
The business advertises on Facebook, Instagram, and branded freezers in stores. website and promotions e in retail new retail stores.
Does the business have any contract work?
Signed Agreements with two Superspars and have received the go-ahead from a majorfuel brand to install freezers in fuel station conveniences.
What competition exists?
Limited competition from other desert manufacturers.
What are the seasonal trends?
Spike in summer months with added markets and events. winter months quieter but consistent sales in existing stores.
How did the Covid-19 pandemic impact the business turnover / daily operations?
This is one of few businesses that maintained level of Sales throughout the lockdown stage of Covid -19 Pandemic. The business is classified as a " Food Manufacturing Business" and thus allowed to manufacture and trade during lock-down times. As a direct result of consistent delivery service this business increased its sales in this period of lock-down.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
This business had a boost during the Covid -19 lock-down in retail stores and home deliveries also increased in volume and sales.
Is the business VAT Registered?
No, the business is not VAT registered.
Are there up-to-date Management Accounts available?
Yes, up to date Management Accounts are available. The product costing is done on a thorough and frequent basis and all recipes will be transferred to the new owner for his/her exclusive use.
What Balance Sheet and Income Statements are available?
The business trades as a "Sole Proprietor" and does thus not produce an annual Balance sheet and income Statements. Sage Financial System is used and a conscientious effort on accurate accounting is exercised.
What percentage of the business is cash/credit?
All purchases of stock and sales to direct clients is done on a cash basis only. The stores work on a "30 days from Statement basis".
What is the age analysis of the debtors book?
Debtors control is strictly monitored and all clients pay within credit period.
How could the profitability of the business be improved?
additional marketing will improve the sales of the business and an up-coming fuel brand has given the go-ahead to install branded freezers with products. additional supermarkets are also an untapped source of potential sales.
What is the total staff complement?
1 staff member employed for 3 days a week. Owner assists and manages the staff member.
Give a breakdown of staff/ functions/ length of service?
Staff member has been employed since 2015. Staff member does the preparation work, production and packaging. The owner concentrates on marketing, buying, accounting and deliveries.
Do any receive special perks or incentives?
During Covid-19 lock-down and restrictions, private transport was arranged for the staff member.
Are they on contract?
The staff member is on a limited hours Permanent Contract
Do any have management potential?
The staff member is excellent in her work in managing the preparation and production process, but does not have the means of marketing and delivering the products.
How involved is the Owner in running the business?
The staff member works under the supervision of the owner. The owner is responsible for marketing, sales, deliveries and accounting process.
Any special arrangements for the staff related to the Covid-19 pandemic?
Special transport was arranged for the staff member during this period.
When does the current lease end?
No lease is required for this business as it is a work from home opportunity.
Do you require a licence?
A food safety ( HASAP) and Hawkers Certificate must be obtained.
What are the main assets of the business?
The main assets of the business is the loyal recurring clientele and the supermarkets that market the products of the business. Physical assets consists of freezers, industrial mixers, mixing bowls etc. A full list of assets is on file and will be made available to qualified buyers.
Are any items not included in the sale?
All items on the asset list is included in the sale of the business.
What is their overall condition?
Excellent working condition.
Do any require repairing?
No repairs required at this stage.
How have they been valued ?
Been valued at a realistic market related value.
Which assets are on lease/HP and with whom?
All assets are paid -up.
Are they presently insured?
All equipment is insured.
This is a " Work from Home" business with only one staff member. The brand is well established and products have been developed through research and are unique in the market. The business is cash driven and there will always be a demand for Ice Cream.
Competition will always be a factor. You compete with established brands such as Nestle, ole, Cadburys etc A proper marketing program must be rolled out to source additional outlets in immediate area.
With a strong brand identity, the opportunities to expand is huge. a concerted marketing effort must be rolled out to open more outlets. Supermarket Distribution Centres can also be approached to assist with the distribution and stocking of products. With the limited marketing done and only 3 working days per week, this is the ideal " work from home Business" and great opportunity to expand the business.
New competitors will always be a threat.
What is the reason for the sale?
The owner wishes to pursue a career in counseling and spend more time with their young children.
Why is this a good business?
This is a "work from Home " cash-driven, easy to manage business with an extremely loyal customer base. The brand is well established and products are of excellent quality and value for money. The growth potential is huge.
What is the price plus stock and the profit?
The asking price is R 400 000 and is making an EBITDA ( Earning before interest, taxes, amortization, and owners remuneration) profit of R84 000 per annum.
Annual Turnover Amount between R 500 thousand and R 6 million