Fully describe the business's activities?
The business supplies micro-needling skincare products and devices to the aesthetic industry through their online shop. Their extensive customer base includes beauticians, doctors and dentists. They also sell branded and unbranded natural skincare, beauty products and skin and body home systems through their online shop. They provide full training on the products and devices. They have a salon at the premises with a therapist and nail technician providing treatments.
How long has the business been established?
The business was established in 2009 and was expanded substantially when they moved to Cape Town in 2013.
How long has the owner had the business?
How does the business operate on a daily basis?
Daily routine includes: Responding to online queries and process orders. Invoicing, picking and packing and then shipping orders via courier service. Dealing with suppliers. Training customers. Constantly do research to stay abreast of new technology and products.
How are the clients attracted to the business?
The business is well-known in the aesthetic industry and they attract clients through word of mouth, the website and social media. The business also has a strong web/online presence through google.
What Advertising/Marketing is carried out?
They offer points for purchases on the website, valid for three months to redeem. They offer regular giveaways on Instagram and Facebook. They also advertise specials on WhatsApp and promote their services and products on a popular radio station. They feature in magazines from time to time (Rooi Rose, Huisgenoot, House & Home, etc).
What competition exists?
The business is not believed to have competitors operating at this level and scale and with their excellent reputation in the industry.
What are the seasonal trends?
Some seasonality exists with a slight decrease in sales during school holidays.
How did the Covid-19 pandemic impact the business turnover / daily operations?
They initially were unaware that they would be allowed to trade supplying specific products, but soon realised they could supply masks, sanitisers, cleaning products, etc., and that kept them going throughout lockdown.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
Up-to-date VAT returns.
Are there up-to-date Management Accounts available?
Yes, up-to-date management accounts are available on request.
What Balance Sheet and Income Statements are available?
Annual Financial Statements as at 29 February 2020.
What percentage of the business is cash/credit?
100% cash since it is an online store with various safe payment options. Orders are paid upfront.
What is the total staff complement?
2 full time admin staff responsible for the online store 1 part-time therapist 1 part-time nail technician 1 doctor administering Botox once p.w. The owners (husband & wife team) Training, R&D, financial functions, logistics, suppliers
Do any receive special perks or incentives?
The two full-time administrative employees receive a 100% annual bonus.
Are they on contract?
The administrative staff are full-time employees and on contract.
Do any have management potential?
How involved is the Owner in running the business?
100% involved regarding the day-to-day running of the business.
When does the current lease end?
It is a 2-year lease ending March 2022
Is there an option of renewal & what period?
Yes. Two year renewal period.
What are the trading hours?
Office hours are: 09:30 - 16:00 Monday - Thursday 09:30 - 15:00 Friday
Is a copy of the lease available?
Do you require a licence?
The beauty industry is regulated by SAASP.
What lease deposit and/or other surety is required?
Double the monthly rent.
What are the main assets of the business?
Equipment and stock Vehicle (Nissan Navara) Furniture & fittings Online store Extensive customer base
What is their overall condition?
All items are in perfect condition.
How have they been valued ?
Which assets are on lease/HP and with whom?
Will Seller settle or Buyer to take over?
Buyer to take over.
Are copies of agreements available?
Yes, copies of the agreement is available.
Are they presently insured?
All assets are fully insured.
The business is well-established with a national and international customer base. Excellent online store. Reliable staff capable of working independently. The business is well-known with an excellent reputation in the beauty/aesthetic industry. Strong social media presence. Trade marks. Offer an after sales service.
Many of the products have no exclusivity.
They are working on their own branded range of health and skincare products and devices which will provide exclusivity. Employing sales representatives nationally to call on salons and medical aesthetic practitioners to promote products. This may require an adjustment in the structuring of the business, but sales will improve substantially with a good sales team in place. Well trained sales people can also take over the function of training customers on the use of the products and devices.
The usual factors affecting the South African economy, e.g. fluctuations in exchange rate, politics, etc.
What is the reason for the sale?
The owners feel the business has grown too much for them to maintain total control and they have identified an opportunity they wish to pursue.
Why is this a good business?
The online store is run by two employees who deal with all enquiries, manage the stock, processing and shipping of orders. Therefore, the owners can manage the business from anywhere. Good cash flow - all orders are paid upfront. Good opportunity for growth - developing own brand of products & devices; employing sales representatives nationally to call on salons and medical aesthetic practitioners to promote products. Stimulating - constant research and development, interaction with customers requiring expert advice, providing training, etc. Acceptable working hours that allows free time and a balanced life.
What is the price plus stock and the profit?
Total asking price R5m.
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