Fully describe the business's activities?
A trendy barber store trading in an affluent area. This store was setup just before lockdown and has managed to breakeven in it's 2nd month. It's client base is growing rapidly.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The barber shop is located in a popular strip mall. It services walk-in clients and growing client base. There is currently 2 barbers working at the moment.
How are the clients attracted to the business?
This barber offers a more affordable option to other barbers in the surrounding area without sacrificing on service or offering. This is seen in it's growing client base and repeat business.
What Advertising/Marketing is carried out?
Social media campaigns, word of mouth and well signed shop front.
What competition exists?
There are other barbers in the area but tend to be a lot more expensive.
What are the seasonal trends?
Only been trading for 3 to 4 months, not enough data to reflect trend.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Is the business VAT Registered?
Not vat registered.
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
70% card 30% cash
How could the profitability of the business be improved?
Increased client base and employing another barber. Greater owner involvement with an active marketing strategy.
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1 manager/barber 1 casual barber.
Are they on contract?
Do any have management potential?
Yes as there is no owner involvement.
How involved is the Owner in running the business?
When does the current lease end?
Is there an option of renewal & what period?
Yes, 3 year period.
What is the annual escalation %?
What are the trading hours?
9am - 6pm Mon to Fri 9am - 5pm Saturdays 9am - 3pm Sundays
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
Yes 2 months rent.
What are the main assets of the business?
Complete fitted out barber store. Asset list available to qualified buyers.
What is their overall condition?
Almost brand new.
Do any require repairing?
How have they been valued ?
Are they presently insured?
Great location in affluent area with a more affordable offering.
No owner involvement.
Increase client base. More community involvement to increase awareness.
Other barber stores in the area.
What is the reason for the sale?
The owner wants to consolidate his business interests.
Why is this a good business?
Almost a brand new store and breaking even after 2 months of trading.
What is the price plus stock and the profit?
R500 000-00 includes R5000 stock.
Annual Turnover Amount between R 500 thousand and R 6 million