Fully describe the business's activities?
Nursery School that caters for babies of 4 months old until Grade RR. Longstanding Principal and Secretary takes care of daily operational duties. Each class has a qualified teacher and an assistant.
How long has the business been established?
Owner started the business 30 years ago.
How does the business operate on a daily basis?
Staff work in morning and afternoon shifts and are in charge to open and close the business. Two meals and two snacks are provided daily.
How are the clients attracted to the business?
The business has a very informative website and a Facebook page. Word of mouth.
Does the business have any contract work?
Parents sign a one month notice contract. Registration Fees are payable in January. Class fees are payable one month in advance for 11 months. No Fees payable in December.
What competition exists?
Nothing for at least a 3km radius.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Started charging half day fees.
Are there up-to-date Management Accounts available?
Owner keeps excellent records and monthly breakdowns can be provided.
What Balance Sheet and Income Statements are available?
Finalising February 2020 Financials
What percentage of the business is cash/credit?
Payments are only received via EFT.
How could the profitability of the business be improved?
No buildings on the second property which is currently utilized only as a play area, can add temporary classes
What is the total staff complement?
7 x Teachers 5 x Helpers 1 x Secretary 1 x Cleaner/Maintenance 2 x Kitchen/Cleaner
Give a breakdown of staff/ functions/ length of service?
Longstanding teaching staff from 3 years to 20 years
Do any receive special perks or incentives?
Only salaries are paid but staff receive a lot of leave
Are they on contract?
All staff is on permanent contracts
Do any have management potential?
The principal has been with the school for 20 years. Secretary acts as Manager
How involved is the Owner in running the business?
Only 3 hours per week.
When does the current lease end?
Owner owns both properties
Is there an option of renewal & what period?
Properties to be sold with the school
What are the trading hours?
Monday to Friday from 6:30-17:30 Open for all holidays and close around the 10th of December Closed for public holidays
What is the square meters of the business?
Combined properties are 2000 sq/m Both have business rights.
Do you require a licence?
Department of Social Development Municipality
What are the main assets of the business?
Play area equipment Toys and educational equipment
Are any items not included in the sale?
Everything is included.
What is their overall condition?
Well maintained condition.
Which assets are on lease/HP and with whom?
Are they presently insured?
Comprehensive insurance is in place.
Manager run Excellent security with cameras in place No bad debt Qualified teachers and longstanding staff Located in a security/boomed area
Impacted by Covid Long working hours
More classrooms added
None were identified
What is the reason for the sale?
Owner wish to retire
Why is this a good business?
Excellent systems with well trained staff and manager in place.
What is the price plus stock and the profit?
Selling price of R6 600 000 includes two properties
Annual Turnover Amount between R 500 thousand and R 6 million