Fully describe the business's activities?
The business offers sunbed and spray tanning, ozone detox, laser hair removal and skin rejuvenation.. They also do product sales.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Clients book appointments in advance for the specific service they require. The studio tanning consultant on duty will perform the necessary service and product sales
How are the clients attracted to the business?
Social media and mostly by word of mouth
What Advertising/Marketing is carried out?
Social media, website and google adwords
Does the business have any contract work?
They have a number of clients who takes out contracts for the service they require. These clients pay by debit order, cash or credit card.
What competition exists?
There are obviously a number of businesses offering the same services, but not in the same shopping center.
What are the seasonal trends?
March to June are the slower months. July to December are the peak months
How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid-19 impacted negatively on the business with the business having to close in April, May and June during the hard lockdown.
Is the business VAT Registered?
The business is not VAT registered
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Management figures for the year from January 2020 to December 2020 was provided.
What Balance Sheet and Income Statements are available?
Balance Sheet and Income Statements will be made available during due diligence.
What percentage of the business is cash/credit?
This is a 100% cash business. 60% pay by credit card and the balance pay cash. A small percentage of the clients who take out contracts pay by debit order.
What is the age analysis of the debtors book?
This is a cash business.
How could the profitability of the business be improved?
Expand on product and service offering by incorporating beauty treatments as well as anti-aging and other facial products. The business could also look into offering a range of beachwear i.e. swimwear, sarongs, wraps, sandals, beach bags, towels, sun hats and sunglasses. They could also investigate the possibility of a mobile spray tan specialist that will go around to the clients in the area.
Is Seller finance available and for what amount?
The seller will not assist with vendor finance.
Give a breakdown of staff/ functions/ length of service?
2 full time studio hygienists. One was employed in 1999 and the other in 2004. They work shifts and alternative weekends. The business also make use of temporary staff for afternoons from 3 to 7pm and peak times. They get paid a hourly rate. Total staff expense is R10,500 pm.
Do any receive special perks or incentives?
The staff get an incentive if they exceed their targets
Do any have management potential?
One of the staff members have management potential.
How involved is the Owner in running the business?
The owner is involved on a daily basis.
Any special arrangements for the staff related to the Covid-19 pandemic?
The staff claimed UIF for the 3 months lock down period.
When does the current lease end?
Is there an option of renewal & what period?
An option to renew up to 5 years may be negotiated with the landlord.
What is the annual escalation %?
What are the trading hours?
Monday to Friday 8.30 am to 6.30 pm Saturday 9am to 3pm Sundays 9am to 1pm Public Holidays 10am too 4pm
What is the square meters of the business?
37,87m2. The shop is located in the banking mall with entrance to the offices,
Is a copy of the lease available?
A copy of the lease will be made available during due diligence
Do you require a licence?
No license is required.
What lease deposit and/or other surety is required?
The lease deposit will be negotiated with the landlord, it could be anything from 1 to 3 months rental.
What are the main assets of the business?
1 x Ergoline sunbed, 1 x stand up tanning unit, 1 x spray machine, and an ozone detox unit
Are any items not included in the sale?
All items generating income stream as indicated in this report is included in the sale
What is their overall condition?
The assets are in excellent operational condition.
Do any require repairing?
The machines are being maintained on a regular basis.
How have they been valued ?
The owner has done some research to obtain the second hand value of similar machines
Which assets are on lease/HP and with whom?
The assets are unencumbered.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The business risks and assets are comprehensively insured.
Excellent position in mayor and popular mall in the Northern Suburbs 24 years in existence Loyal client base
Expand on product and service offering Intensified Marketing Campaign
Covid and further lockdown
What is the reason for the sale?
The seller wants to concentrate on her laser therapy business, closer to home (Westrand)
Why is this a good business?
Established for 24 years with excellent location.
What is the price plus stock and the profit?
R350,000 plus R25,000 stock. The seller move to smaller premises in the mall in October 2019, located at the banking mall and entrance to the offices. This insures many feet and a huge saving in rent
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