"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The business is a take away / convenient store in an industrial area with good visibility.
It is the only store on the premises.
How long has the business been established?
The business was established 8 years ago.
How long has the owner had the business?
The owner bought the business 11 months ago, just before the pandemic.
Give a breakdown between sit-down, takeaways and deliveries
Over the counter = 50% .
Deliveries in the industrial park = 50%.
How does the business operate on a daily basis?
The Manager opens at 07h00 in the mornings and closes the shop at 16h00 during weekdays.
The kitchen prep work is completed by 09:30 each morning.
Orders are taken by walk-in clients as well as via WhatsApp for deliveries within the industrial park.
How are the clients attracted to the business?
The store is in a prime spot with people / vehicles passing the shop all day.
What Advertising/Marketing is carried out?
Whattsapp group / word of mouth.
Does the business have any contract work?
Yes , R5000 pm - can be explored / increased.
What competition exists?
None on the premises.
What are the seasonal trends?
Stable during the year with a downtrend during the month of December.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was closed for more than a month with a zero income.
Business started picking up as surrounding businesses started re-operating.
Sales have increased nicely over the past few months.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Implemented new products and ideas.
Is the business VAT Registered?
No
Are there up-to-date Management Accounts available?
Yes available for 10 months of 2020.
What Balance Sheet and Income Statements are available?
No, the business was taken over at the beginning of 2020.
What percentage of the business is cash/credit?
80% Cash / 20% Credit cards.
Payments of deliveries are done on a mobile card machine.
What is the age analysis of the debtors book?
None.
How could the profitability of the business be improved?
Selling of air time was recently started.
Deliveries to neighboring factories will increase sales and profitability.
Is Seller finance available and for what amount?
No.
What is the total staff complement?
The staff complement consists of a manager and 3 staff members.
Give a breakdown of staff/ functions/ length of service?
The manager performs the normal managerial functions as well as the till.
The one staff member does the cooking.
The second staff member does deliveries / cleaning.
The third staff member does serving / the braai.
Do any receive special perks or incentives?
No.
Are they on contract?
No.
How involved is the Owner in running the business?
The owner is involved in a supervisory capacity
Any special arrangements for the staff related to the Covid-19 pandemic?
No
When does the current lease end?
The lease agreement is valid until 2023.
Is there an option of renewal & what period?
Yes, a three year renewal period.
What is the annual escalation %?
10%.
What are the trading hours?
07:00 till 16:00 - Five days a week.
What is the square meters of the business?
60 sqm.
Is a copy of the lease available?
Yes.
Do you require a licence?
Yes, Annual Health and Safety Certificate.
What lease deposit and/or other surety is required?
One months rent as deposit.
What are the main assets of the business?
All kitchen equipment, utensils, counter, till and shelving.
Are any items not included in the sale?
No.
What is their overall condition?
The shop is neat and the equipment is in a very good condition.
Do any require repairing?
The landlord is busy upgrading the plumbing.
CCTV camera can be upgraded.
How have they been valued ?
Valued at secondhand replacement values.
Which assets are on lease/HP and with whom?
None.
Are they presently insured?
No insurance currently in place .
Was R1500.00 pm.
Strengths?
The business is situated in a very good location within the industrial area .
It is a running concern with reliable staff.
There is no competition on the site.
Opportunities?
Room for business expansion to surrounding industrial areas.
The Blue Collar trade, in the early mornings, for people on their way to work - can be explored.
Threats?
The economy affecting the buying power of customers.
Possible future restrictions of lockdown.
What is the reason for the sale?
The owner is relocating to the Western Cape.
Why is this a good business?
The business is a profitable business that only trades during the week.
For the Owner it is minimum input for maximum output.
What is the price plus stock and the profit?
The price is R690 000.
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