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Annual turnover

  • Mandate: 34124
  • Added: 19 Jul 2020
  • AFS
  • 294

Garden & Advisory Service to High Net Worth Families. Easy to Run. Minimal Owner Input Needed.

Gauteng, Johannesburg
Mandate 34124
Added 19 Jul 2020
R 1,040,000* ZAR
Stock: R 0
Assets: R 200,000
R 40,132 ZAR
Erich Haupt
Aldes Optima

Garden and Advisory Service to high net worth inividuals/families living in large executive homes with very large gardens. Largely a recession-proof business.

Garden & Advisory Service to High Net Worth Families. Easy to Run. Minimal Owner Input Needed.
R 1,040,000* ZAR
Stock: R0
Assets: R200,000
R 40,132 ZAR

Garden and Advisory Service to high net worth inividuals/families living in large executive homes with very large gardens. Largely a recession-proof business.

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Fully describe the business's activities?
Upmarket Garden and Advisory Service to high net worth families in the northern suburbs of Johannesburg. Services include garden services, landscaping, planting advice and purchasing of plants etc for clients. Clients serviced have large executive gardens with very large stands.

How long has the business been established?
The business was established in 1984. 36 years.

How long has the owner had the business?
The seller bought the business in 2015.

How does the business operate on a daily basis?
Driver reports to owner in the morning and collects schedule for the day and then transports the staff and equipment to the jobs for the day. The driver also works in the gardens when not driving.

How are the clients attracted to the business?
Facebook page works very well as well as marketing boards outside clients properties whilst working there.

What Advertising/Marketing is carried out?
Word-of-mouth amongst clients is very powerful. Occassionally pamphlets are handed out by staff in areas in which they are working.

Does the business have any contract work?
No, they operate on a month-to-month basis but clients are long-standing and very loyal. This scenario has proved to work in their favour as clients feel very comfortable and do not move easily.

What competition exists?
None really at this level. Most clients have full time gardners but due to large size of these properties they cannot cope and that is where this service comes into its own.

What are the seasonal trends?
Tends to be busy in winter because of pruning. The business closes in December for 3 weeks by choice.

Are there up-to-date Management Accounts available?
Yes, recent Management Accounts are available.

What Balance Sheet and Income Statements are available?
February 2020.

What percentage of the business is cash/credit?
Clients pay by EFT.

What is the age analysis of the debtors book?
30 Days payment by clients.

How could the profitability of the business be improved?
Using the current base this is the perfect business to grow by building the base. One can also open a division servicing smaller homes and thereby increasing the revenue almost immediately.

What is the total staff complement?
Nine staff plus the owner. The staff are very knowledgable and understand what he clients need and can apply this in their day-to-day functions. The owner rarely visits clients and does so normally to stay in touch and give advice.

Give a breakdown of staff/ functions/ length of service?
2 x Landscapers, 2 x Foremen, 5x general cleaners/cutters/pruners etc.

Do any receive special perks or incentives?
A bonus is paid in December at management's discretion.

Are they on contract?
Yes, they have letters of appointment.

Do any have management potential?
Yes, one individual in particular has mangement potential.

How involved is the Owner in running the business?
The owner is involved in the business for about 40% of her time.

When does the current lease end?
This business can run from home. Storage space for equipment is needed such as a garage or wendy house plus parking for the bakkie in the evenings and on the weekends.

What are the trading hours?
Monday to Friday: 8.00 am to 4.30 pm

Do you require a licence?
No licence is required to run this business.

What are the main assets of the business?
1 x Nissan Hardbody NP 300, Lawnmowers x 2, Weed-eaters x 2, Blowers x 2, brushcutters and various gardening tools.

What is their overall condition?
Good to excellent. Nissan Hardbody NP 300 bakkie is only 3 years old.

Do any require repairing?
No, all are in good working order.

How have they been valued ?
Net realisable value.

Which assets are on lease/HP and with whom?
The Nissan bakkie is on lease.

Will Seller settle or Buyer to take over?
Small amount owing - preferable for buyer to take over.

Are copies of agreements available?

Are they presently insured?
Yes, comprehensively insured.

Easy to run. This business has been running successfully for 36 years since 1984. The history speaks for itself with longstanding clients who are very loyal. Staff are very knowledgable and work unsupervised in most cases.

Due to the health of the owner the marketing could be stronger than it is.

To go BIG using this very strong existing base. Start a service to smaller property owners.

None really as the clients are high net worth Individuals who don't appear to be affected by the economy.

What is the reason for the sale?
The only reason the owner is selling is due to a recent health diagnosis.

Why is this a good business?
Working with clients who are high net worth individuals or families. They are prepared to spend monry on their homes and especially on their very large gardens. Can use this good base to grow the business quickly.

What is the price plus stock and the profit?
The asking price is R1 040 000 including all assets. The adjusted net profit and income accruing to the owner is R482 000 per annum.

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Aldes Optima

1 members
9 active mandates
P.O. Box 588

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