Fully describe the business's activities?
The business operates as promoters and brand ambassadors for retail clients with a footprint throughout South Africa . They make use of mascot characters for promotions and are fully equipped to assist clients with road shows. The business also conducts market research on behalf of clients. Merchandising is at the core of the business with staff well trained to pick , pack and create displays. Staff is experienced and always aim to deliver some bling to events for customers . Feedback is given to clients in a form of a report with photos. The business also does pamphlet distributions.
How long has the business been established?
The business was established in 2009.
How long has the owner had the business?
The owner started the business eleven years ago.
Geographical breakdown where business operate?
The Business mainly operates in the rural / far off areas throughout South Africa. Currently it is not focusing on the larger metropoles.
How does the business operate on a daily basis?
Getting orders from customers to execute marketing strategy and projects as planned. Training of staff is done on a ongoing basis related to knowledge of product to be marketed. The business has five people at Head Office managing the business operations on a National basis.
How are the clients attracted to the business?
Clients are attracted by word of mouth and sourcing of clients on a personal basis
What Advertising/Marketing is carried out?
Websites, Facebook, Instagram and advertising in glossy magazines.
Does the business have any contract work?
What are the seasonal trends?
The busy times of the year are Easter time, week 30 and 31 during July month and December.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The merchandising was ongoing while the rest of the operations stopped. Normal operation from Level 2 of Covid-19.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The business concentrated on Merchandising since the start of the Lockdown.
Is the business VAT Registered?
What Balance Sheet and Income Statements are available?
Financial statements for the period ending February 2020 are available.
What percentage of the business is cash/credit?
Only EFT payments are received
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
More marketing can be done.
What is the total staff complement?
There are 5 staff members at head office consisting of the owner, a 2IC, two campaign managers and an administrator. There are 27 supervisors over the country working on a network basis with many staff on hand to market, research or execute marketing project as ordered by clients.
Give a breakdown of staff/ functions/ length of service?
The owner started the business 11 years ago. The second in command and the campaign managers have been with the business for 8 years. The supervisors are working for the business for minimum of 5 years.
Do any receive special perks or incentives?
Special arrangements with customers normally caters for some enhanced / motivational benefit for staff.
Do any have management potential?
The owner is satisfied with the performance of the second in command.
How involved is the Owner in running the business?
The owner is full time involved in the daily activities of the business.
Any special arrangements for the staff related to the Covid-19 pandemic?
Other than the necessary and required precautions , not much.
When does the current lease end?
No lease applicable .Currently the business is run from home. The Buyer needs to set up their own offices.
What are the main assets of the business?
No tangible assets. A solid network structure is in place , lots of customer data and information and the expertise of staff members.
National footprint. Low overhead expenses. Work from home. Established network that covers the whole country .
No tangible assets - Purchase Price is almost entirely Goodwill
Targeting other industries / sectors.
Disclosing sensitive customer data and information.
What is the reason for the sale?
The owner bought a wedding venue and wish concentrate on the new venture.
Why is this a good business?
Asking price is market related for a business with a proven track record.
What is the price plus stock and the profit?
Seller is asking R6 100 000
Annual Turnover Amount between R 500 thousand and R 6 million