Fully describe the business's activities?
This bottle store in Lenasia has several informal settlements in the area. These inhabitants make up a large portion of the customer base. The business focus on volume sales and possibly more into Beer than other liquor types. It is not your usual store with shop frontage and most business is done behind the counter.
How long has the owner had the business?
How does the business operate on a daily basis?
The seller does most of the buying and pricing. He does however have sufficient staff in place to assist with the day to day running of the operation.
How are the clients attracted to the business?
This is the only liquor store in the area. It is situated in a strip mall centre with cashbuild, shoprite, chicken licken being erected, who draw feet to the centre.
What Advertising/Marketing is carried out?
How did the Covid-19 pandemic impact the business turnover / daily operations?
It did impact the business as they had to close down for a while, but sales are back to where they were before lockdown.
Is the business VAT Registered?
What VAT documentation is on file?
Up to date....
Are there up-to-date Management Accounts available?
The only decent records that are available are printouts from the Point of sale system. However very accurate and well laid out. These can be discussed with the seller and viewed during the viewing process. Expenses are very low in this operation, hence high return on sales, and is recorded on an excel spreadsheet by the seller.
What Balance Sheet and Income Statements are available?
To be discussed.
What percentage of the business is cash/credit?
This is a 100% cash business (small amount of credit card sales). there are modern, electronic, drop safes installed in the store.
Is Seller finance available and for what amount?
What is the total staff complement?
Do any have management potential?
How involved is the Owner in running the business?
He is involved daily but not necessarily needed.
What are the main assets of the business?
There is a decent Point Of Sale system in-store.
100% CASH Business
7 days a week.
What is the reason for the sale?
The seller have lost both his parents in the recent past and his father was fairly involved in the day to day running of the business. He does not have the will to continue alone.
Why is this a good business?
No marketing needed as it is surrounded by many settlements, suburbs in the area. It is a cash only business. No major equipment maintenance needed, with very low expenses other than salaries. Please note that formal financials will not give any indication of the magnitude of the business and it will call for a due diligence to be done in the business by a potential buyer. Due to the lack of decent financials a financial institution will not borrow money for such a operation. It essentially means that the Buyer will need to come up with the full purchase price.
What is the price plus stock and the profit?
R4,5m plus stock of R1m.
Annual Turnover Amount between R 500 thousand and R 6 million