Fully describe the business's activities?
Retail stationery store with 50/50 split between corporate and walk in clients. Website with online sales also available.
How long has the business been established?
The owner started the business in 1999.
How does the business operate on a daily basis?
Retail store opens from 08:00 - 17:00 Deliveries for commercial clients. Owner fully hands on.
How are the clients attracted to the business?
Word of mouth Facebook Catalogues handed to corporate clients Website
What Advertising/Marketing is carried out?
Owner regularly visits schools
Does the business have any contract work?
What competition exists?
Nothing in the close vicinity
What are the seasonal trends?
Back to school is very busy and generates 20-30% of the income for the year
How did the Covid-19 pandemic impact the business turnover / daily operations?
Negative effect as with most businesses was closed for April
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Opened a Facebook Page Phoned customers Advertising campaign with selected schools
Is the business VAT Registered?
What Balance Sheet and Income Statements are available?
Financial Statements for the year ending February 2020
What percentage of the business is cash/credit?
Very little cash. 50% of income is on 30 days
What is the age analysis of the debtors book?
About R500 000
How could the profitability of the business be improved?
Reps can be employed to visit corporate clients Currently a Level 2 BEE Status this can be improved
What is the total staff complement?
9 staff members
Give a breakdown of staff/ functions/ length of service?
4 x Cashiers 1 x Driver 1 x Store lady 1 x Buyer 1 x Sales lady 1 x Accountant (owners wife
Do any receive special perks or incentives?
No only monthly salaries
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
Owner is fully hands on in managing the business, conflict management, advertising
When does the current lease end?
Lease ends in July 2021
Is there an option of renewal & what period?
Yes a further 5 years
What is the annual escalation %?
What are the trading hours?
Monday to Friday from 08:00 - 17:00 Saturday from 08:00 - 12:00
What is the square meters of the business?
Do you require a licence?
What lease deposit and/or other surety is required?
One months lease deposit and one months rental in advance
What are the main assets of the business?
8x Computers 4 x Desks 1 x Laser machine Storage shelves
What is their overall condition?
Everything in a good and working condition
Are they presently insured?
Regular schools and corporate clients Great staff Low overheads
No management in place as owner is very hands on
Employing reps Increase BEE level
None were identified
What is the reason for the sale?
Owner wishes to retire and relocate
Why is this a good business?
Established business with good systems and staff in place.
What is the price plus stock and the profit?
Selling price of R3million plus Stock of R1 million
Annual Turnover Amount between R 500 thousand and R 6 million