Fully describe the business's activities?
This business stocks the well-known brands of beds, including Serta, Lylax, Cloud Nine and Rest Assured. They also stock high-end custom furniture and decor where only the best will do. Products for sale at their 4 upmarket and unique showrooms include: â¢ Mattress and base sets â¢ Custom, hand-made bedroom furniture â¢ Imported feather-inner scatter cushions and covers â¢ Ultra-plush, high quality Sherpa throws and blankets â¢ 100% cotton percale linen â¢ Brushed microfibre linen â¢ Top quality Memory Foam & Tranquil Plush pillows.
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 business has a dedicated sales force who offer customers online and in-store quotes and advice, and they are already renowned for their prompt and professional service. This has helped to engender confidence in the businessâ brand and service.
How are the clients attracted to the business?
Customers are attracted to the businessâ retail shops by the impressive decor and the range of quality merchandise. The business also has an online store which is gaining traction. The business prides itself in offering the ultimate in bedding and bedroom furniture to individuals, as well as solutions for hotels, interior decorators and contractors.
What Advertising/Marketing is carried out?
The business is very active in the advertising and marketing space, including Facebook, Instagram, YouTube videos, website and East Coast Radio.
What competition exists?
There are numerous competitors that offer beds and related products but none have the carefully thought-out mix of quality, range and competitive pricing of this unique business.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The pandemic had an obvious impact on the business and yet it still managed to turn a good profit during this time.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The business has entered into arrangements with their preferred suppliers to provide superior products at competitive prices which offer true value for money.
Is the business VAT Registered?
What VAT documentation is on file?
The latest vat documentation is on file.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Management accounts for the 10 month period ending 31 December 2020.
What percentage of the business is cash/credit?
All cash or EFT - no credit.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Turnover will increase organically because some of the stores were opened during the course of the year. Profitability will increase in line with the increase in turnover.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Store Managers x 2 Marketing Manager x 1 Sales/ Admin x 6
Do any receive special perks or incentives?
They receive commission based on Sales /Gross Profit.
Are they on contract?
Do any have management potential?
There are staff in existing management positions.
How involved is the Owner in running the business?
The owner oversees the business performance but leaves the running of the business to his competent staff.
When does the current lease end?
There are four separate leases with different lease periods. Details of all leases are on file.
What is the annual escalation %?
What are the trading hours?
08:00 - 17:00 (weekdays) and 08:00 - 15:00 (Saturdays and Sundays).
What is the square meters of the business?
The sizes are different for each of the stores. the measurements are 195m2, 192m2, 105m2 and 270m2.
Is a copy of the lease available?
Copies of all leases are available.
Do you require a licence?
What lease deposit and/or other surety is required?
Deposits/surety vary per store.
What are the main assets of the business?
An asset register is available to serious buyers.
Are any items not included in the sale?
What is their overall condition?
Ass assets are in excellent condition.
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
No assets are on finance.
What are their settlement amounts?
This business has perfected the optimum mix of bedding and related products which differentiate them from the competition. Their unmatched service, decor and competitive pricing attracts customers directly and this is evident in the good trading and profitability.
No perceived weaknesses.
The business is established and primed to take advantage of the easing of lockdown restrictions. Moreover, the present owner, who is an expert in the retail of beds and related products, is available to consult to the buyer with respect to further rollout of stores across the country and will share his vision for the future.
A further wave of the pandemic may have an impact on the business.
What is the reason for the sale?
The owner has multiple business interests and has decided to reduce his workload.
Why is this a good business?
All the hard work to establish this business has been done and it is primed for growth across all 4 retail shops. The owner is happy to discuss the potential of this business to serious buyers.
What is the price plus stock and the profit?
What is the price plus stock and the profit? The asking price for the business is R2 500 000 including stock of approximately R1 000 000. Profit for the ten months to December is R770 797 (annualised to R924 900 for a 12-month period).
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