Fully describe the business's activities?
This small business had more than one branch but due to a Mall Revamp, had to close one branch. They now operate from one site and the owner has focused its core business in the renting out of wedding-, evening-, bridesmaid-, matrix dance-, cocktail and flower girl dresses. They also supply other articles like Jewelry and accessories. The employees open and closes the shops with the owner spending between 2-3 hours per day in the business.
How long has the business been established?
The business was established in 2012 and soon expanded. It can easily be scaled again.
How long has the owner had the business?
The owner bought the business in 2018.
How does the business operate on a daily basis?
This business currently has 3 employees. The owner is not really involved with the daily running of the Business. The staff works shifts and opens and closes the business.
How are the clients attracted to the business?
Clients are attracted by the google add word campaign for the website . Further marketing are done in the form of advertising . The location of the business also lends itself to walk inn clients.
What Advertising/Marketing is carried out?
The google add word campaign, online advertising on Gumtree and Facebook as well as some printed mediums mostly like wedding magazine etc, drive in business.
What competition exists?
There are a few smaller, similar business.
What are the seasonal trends?
March to April and December to February Weddings. July December Evening and Matric Balls.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business had to close their one branch just before the Covid pandemic which led to a significant loss in turnover. However, all the stock were moved to the current location. Covid did impact the business as the core market focuses on weddings and matric dances but in the months with no lockdowns, the numbers jumped up and the business will restore itself very easily in normal operating environments.
Is the business VAT Registered?
The business is VAT registered but the owner is in the process of de-registering.
Are there up-to-date Management Accounts available?
Yes, up-to-date management accounts are available.
What Balance Sheet and Income Statements are available?
Approx 60 % of the income is in the form of actual CASH.
What percentage of the business is cash/credit?
100% Cash with deposits being paid on booking.
How could the profitability of the business be improved?
Advertising. Partnerships with designers and and consignment stock. Partnerships with wedding planners etc.
Is Seller finance available and for what amount?
Can be discussed
What is the total staff complement?
Are they on contract?
How involved is the Owner in running the business?
The owner is not involved with the sales / daily operations. 1-2 hours per day to deal with admin is all that is needed. .
When does the current lease end?
The lease expires December 2021.
Is there an option of renewal & what period?
Yes, there is an option for renewal.
What is the annual escalation %?
What are the trading hours?
Monday to Friday 09:30 - 17:00 Saturday 09:00 - 13:00.
What is the square meters of the business?
Is a copy of the lease available?
Yes, a copy of the lease is available.
What are the main assets of the business?
The main assets are the wedding dresses, bridesmaid dresses, flower girl dresses and other 'stock' that gets rented out. Valued at around R 740 000. The small assets ( shelving etc ) is around R 100 000
What is their overall condition?
Sustainable High income model - low cost of sales especially if the new buyer is a designer / dressmaker Owner involvement low Local Celebs using their dresses - good exposure . Developed a PLUS range size, new to the Business since purchasing it.
Partnerships with designers, dressmakers, wedding planners etc
What is the reason for the sale?
The previous owners was a husband and wife team. They got divorced and sold their 3 branches. The current owner bought 2 branches in 2018 and ran them on the side. The demand on their family business has increased and she needs to focus more attention on their family business.
Why is this a good business?
Solid revenue Social Emotional Rental Item " Recurring Income" Unlimited Potential Asking price - negotiable at R 595 000 which includes stock and assets of around R 840 000
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