Fully describe the business's activities?
Retailer of biltong, dry wors and related products to the public in shopping centers.
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 shop assistant opens the shop and serves the clients.
How are the clients attracted to the business?
Signage in the shopping centres. Social media and google.
What Advertising/Marketing is carried out?
Social media. Pamphlets and advertising in the shopping malls.
Does the business have any contract work?
The clients pay cash.
What are the seasonal trends?
December are normally busier with more feet in the shopping centre.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The lockdown impacted on the business. Prior to Covid the average net profit was R25,000 per month. It is slowly increasing steadily.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The landlord approved a reduction in rent and UIF contributed towards the salaries.
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?
Up to date management accounts for the month ending February 2021 are on file.
What Balance Sheet and Income Statements are available?
AFS for the year ended February 2020 are ready and the accountant is finalizing the 2021 financial statements.
What percentage of the business is cash/credit?
35% cash and 65% swipe. The business pays many of the suppliers in cash to reduce bank cost.
What is the age analysis of the debtors book?
100% cash, no accounts.
How could the profitability of the business be improved?
Do more hampers. Advertising and marketing.
Is Seller finance available and for what amount?
No seller finance is available.
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
2 shop assistants, 1 at each shop The assistants work every 2nd weekend. A staff member is employed to work the alternate weekends and during peak months a temp is employed.
Do any receive special perks or incentives?
No. Only at the discretion of the owner.
Are they on contract?
Yes, the staff are on contract.
Do any have management potential?
The staff is capable of managing the shops. The owner has a full time job.
How involved is the Owner in running the business?
The owner orders stock and oversee the finances.
Any special arrangements for the staff related to the Covid-19 pandemic?
When does the current lease end?
April 2021 and August 2021.
Is there an option of renewal & what period?
5 and 3 years.
What is the annual escalation %?
What are the trading hours?
9am to 18h00
What is the square meters of the business?
17m2 and 24,3m2
Is a copy of the lease available?
A copy of the leases will be made available during due diligence.
Do you require a licence?
What lease deposit and/or other surety is required?
3 months rental or to be negotiated with the landlord.
What are the main assets of the business?
cash registers, scales and fridges. A full asset list is on file.
Are any items not included in the sale?
All assets as seen on the asset list is included in the sale.
What is their overall condition?
The assets are in good condition.
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
The assets are unencumbered, only the two credit card machines are on lease at R448 per month respectively.
What are their settlement amounts?
Buyer to take over.
Are they presently insured?
The shops and its assets are insured.
The shops have been in operation for 8 years with loyal and well trained staff. The location is good with lots of foot traffic.
The owner has a full time job and a new owner could concentrate on growing the business.
Hampers, selling outside the shop and introducing more products.
Another total lockdown due to Covid.
What is the reason for the sale?
The owner has a full time job.
Why is this a good business?
The shops have been operational for 8 years and offers good products and service. Very good location.
What is the price plus stock and the profit?
R500,000 plus stock of R30,000.
Annual Turnover Amount between R 500 thousand and R 6 million