Fully describe the business's activities?
Sales and rental of wedding dress and wedding accessories plus alteration services. With the businesses focus and expertise on rentals it is uniquely positioned in this market, something the competition has tried to emulate but not been successful. This also means that the stock is not strictly stock but an asset of the business as it is rented multiple time and its cost is very quickly recovered. In order to cater for the variety of brides fairly large stock inventory is held which may be seen as a negative, there is however no risk as all these items can also be sold and are sold before showing too much wear and tear; therefore there is no wastage or write off. The business also has various rights to different brands they rent and sell. They are the sole importer for a well-known brand. The second brand, which is also a well-established brand in South Africa, they have regional exclusivity. The third brand is a very well known and sought after international brand with a 50km exclusivity radius. Coupled with supplier terms and standing contracts, this makes for a very atractive business proposition.
How long has the business been established?
How long has the owner had the business?
The owner started the business
How does the business operate on a daily basis?
Owner is involved on a daily basis in the running of the business
How are the clients attracted to the business?
This is a very well known business, Word of mouth, Facebook (promotions), Google Webpage, Instagram (promotions), Real bride photographs
What Advertising/Marketing is carried out?
Facebook, Instagram and Website
What competition exists?
There are various other competing businesses in this space, however, they cannot compete on the same level against the business. Some of the competitors do not hire dresses and only sell dresses. Other competitors also do not have the same quality product as the business. The business has consumed the more and more clientele of other bridal businesses each consecutive year and is still attracting more clients from other bridal stores.
What are the seasonal trends?
The business caters for the highest demand being rental dresses from the most popular designers which are contracted to the business and as a result are busy for around eight months of the year and on the other four months where it is less busy promotions are run to attract business.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Level 5 lockdown affected all businesses. Level 3 and 4 the bridal business was open to clients under the covid prescribed regulations. Did not experience a decrease in appointments made or the booking of dresses
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Selling online during total lockdown
Is the business VAT Registered?
What VAT documentation is on file?
All Vat returns are available
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
All are available
What percentage of the business is cash/credit?
80% - EFT 20% - Cash
What is the age analysis of the debtors book?
50% deposit on order 25% within 30 days 25% within 60 Days
How could the profitability of the business be improved?
Open more stores as the time and effort to get everything up to the current high standards has been done and the benefit of this can now be reaped. Expanding current business premises to accommodate growing clientele numbers with bookings.
What is the total staff complement?
12 Staff Members
Give a breakdown of staff/ functions/ length of service?
2 Permanent 3 Contract - Seamstresses 7 Casuals - Most weekends
Do any receive special perks or incentives?
Salary and Commission for the two permanent Seamstresses are paid per day Casuals are paid a flat rate per fitting plus 10%
Are they on contract?
The two permanent staff â yes Seamstresses contracted out to business-work for themselves on-premises. Always on hand.
Do any have management potential?
How involved is the Owner in running the business?
Owner is 100% involved in the running of the business
Any special arrangements for the staff related to the Covid-19 pandemic?
As required by the regulations
When does the current lease end?
31 July 2022
Is there an option of renewal & what period?
Yes for two years
What is the annual escalation %?
What are the trading hours?
08:00-17:00 Monday to Friday 08:30-15:00 Saturday 09:00-13:00 Sunday
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
No, non alcoholic champagne is served during fittings
What lease deposit and/or other surety is required?
To be negotiated with the landlord
What are the main assets of the business?
Stock - Dresses for Rentals (Are actually assets of the businesses as they are rented multiple times and finally sold) Store Equipment Furniture and fittings
Are any items not included in the sale?
All owners Laptops
What is their overall condition?
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
Water cooling system is from Oasis at R120 per month Dresses on order
What are their settlement amounts?
Currently R380,000 on dresses being settled at R70,000 per month
Are they presently insured?
For fire and theft
Well known and established - Going Concern sale Word of mouth, 60% of clients are from happy bride referrals Very good Facebook and Instagram reviews Hire and Purchase options for brides Cater for almost all budgets Cater for almost all sizes Established website, Accounting system, Social media, Daily Operating system in place, Accountant A very high number of Facebook and Instagram followers Reliable Suppliers who are also very helpful with guidance and support Contracts with suppliers with exclusivity in areas Alterations department Importer and Exporter Registered - Customs Client number with SARS All dresses can be available in the showroom if needed. The business still showed profit during the lockdown stages, which is proof of a good business plan. Economic of scale to negotiate with suppliers. Can stock more variety of brands
The competition which is healthy and not seen as a threat Owners working in the business daily, this can be managed by a manager Seven days work week as weekends are mostly fully booked
Additional branches can be opened Add more collections Add bridesmaid and Mother of bride dresses Expand online sales Combine efforts (promotions) with hair stylists, jewelry, photographer and make-up artists Add more accessories for sale & hire: garters, shoes, hair, jewelry, winter jackets or stoles
Covid19 -Business hours, increase in Admin and the unpredictable circumstances Possible competition from existing and new bridal stores
What is the reason for the sale?
Due to relocation and some to retire and others have small children and cannot be in the business full time going forward.
Why is this a good business?
Even through lockdowns the business has shown good profits and has adapted to the new circumstances Showroom was able to go through lockdown without any debt and paid all salaries and suppliers Profit share was paid out to partners after lockdown and profit is good for the business There are many opportunities to increase profit Brides will always want their dream dress Opportunity to go to Bridal events internationally and locally to buy the newest bridal collections from the suppliers The business is well known and one of the supplier's flagship stores in Gauteng The business is also the only importer of a specific European dress in Southern Africa without any middleman
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Annual Turnover Amount between R 500 thousand and R 6 million