Fully describe the business's activities?
This business creates award wining and design protected home and garden features as well as creative steel furniture.
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 creates or uses existing designs for garden and/or steel furniture that is manufactured through a process of CNC machining and/or manual manufacturing at its manufacturing plant.
How are the clients attracted to the business?
Clients are attracted through the unique designs that this business creates and manufactures.
What Advertising/Marketing is carried out?
Website, Facebook, Shows and Word of Mouth
Does the business have any contract work?
The business manufactures furniture and decor for a well known restaurant/bar chain in the region
What competition exists?
The designs of this business is truly creative, and design protection exists, thus for the specific designs no competition exists.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The owner is a sole proprietor with a very simplistic management of finances, therefore the owner presented all bank statements that show all funds into and out of the business.
What Balance Sheet and Income Statements are available?
The business operates on an informal manner, thus there are no formal balance sheet information available. Yet the assets of the business was used as a calculation for the sales price, these are tangible assets that are on the premises, any potential buyer could thus identify the value of the business assets relatively easily.
What percentage of the business is cash/credit?
All business is based on cash
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The owner runs an informal business that if formalised and structured could yield results, the designs of the business also lends itself to have a model that licences designs for manufacture to other steel related businesses across South Africa, these are opportunities that could be explored by buyer of this business.
Is Seller finance available and for what amount?
No Seller finance available
What is the total staff complement?
The staff complements varies as owner uses sub contractors during heavy load periods and lower staff during lower periods of business, permanent employees total is at 2 people, currently the workshop area has 6 people.
Do any receive special perks or incentives?
The workshop supervisor that operates the workshop area without the owner involvement at times has a special commission on sales done over and above his standard salary.
How involved is the Owner in running the business?
The owner involvement varies as he travels between Cape Town and Gauteng.
When does the current lease end?
The lease is open to full requirements as new owner may require
What are the main assets of the business?
Engineering and Steel Manufacturing Equipment
The products of the business is very creative and all manufacturing is done on premises.
The owner never formalised the business, thus distribution models were not developed.
Distribution models, engagement with larger resellers across country and licensing opportunities.
Stagnant growth due to owner not unlocking potential of the business.
What is the reason for the sale?
Owner travels constantly between Cape Town and Gauteng, he now wants to settle in Cape Town with his family.
Why is this a good business?
The business creates unique designs that adds beauty to home and garden, and the added steel furniture line holds potential
What is the price plus stock and the profit?
The price of the business is R1,078,000 - The asset value estimation is R980,000
Ideal Buyer Profile
The ideal buyer of this business would be a creative steel tradesperson, such as Boilermaker, with an entrepreneurial flair that can take business to the next level.
Annual Turnover Amount between R 500 thousand and R 6 million