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Annual turnover

  • Mandate: 34552
  • Added: 19 Apr 2021
  • AFS
  • 443

Online Store with Well Established Footprint

Mandate 34552
Added 19 Apr 2021
R 1,600,000* ZAR
Stock: R 0
Assets: R 56,000
R 59,793 ZAR
Pieter Brink
Aldes Focus
Gauteng, Pretoria East
Gauteng, Pretoria East

Online Store with a well established footprint and client base nationally. Four years in operations and increased sales during and with the lockdown and Covid pandemic.

Online Store with Well Established Footprint
R 1,600,000* ZAR
Stock: R0
Assets: R56,000
R 59,793 ZAR

Online Store with a well established footprint and client base nationally. Four years in operations and increased sales during and with the lockdown and Covid pandemic.

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Fully describe the business's activities?
The business is an online store selling Software and Point-of-Sale equipment to a diversified client base which includes retailers. The business operates nationally with the biggest client basis in major cities of South Africa. The offices are currently based in the Eastern Cape, but the business infrastructure is primarily online and thus the business can thus be run from anywhere. The owner has suggested a Gauteng footprint with regard to the historical client base in the area and the possibility of a dual physical store selling the same products.

How long has the business been established?
4 years

How does the business operate on a daily basis?
On Daily basis we respond to emails, quotes and process online orders. 80% sales come through the online portal; 5% Call-In and 15% send quote requests.

How are the clients attracted to the business?
The Online Store, Google Advertising and Facebook Adverts

What Advertising/Marketing is carried out?
100% Online via pay per click

Does the business have any contract work?

What competition exists?
The biggest competition is Takealot and 4Pos

What are the seasonal trends?
Online stores are busier in Summer (traffic) but we are generally busy through the year. The most profitable months are in Winter though

How did the Covid-19 pandemic impact the business turnover / daily operations?
It has increased our revenue as buyers are now open to online shopping and are accepting it as a new way of life

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
We have made the ordering process easier and more acceptable by accepting order over the phone.

Is the business VAT Registered?

Are there up-to-date Management Accounts available?

What percentage of the business is cash/credit?
The business is 100% on a cash before delivery basis.

How could the profitability of the business be improved?
Opening a walk-in store in a busy city like Pretoria, Johannesburg or Cape Town. (The business' main client base is from Gauteng)

Is Seller finance available and for what amount?

Give a breakdown of staff/ functions/ length of service?
The business is run by the partners at the moment, conducting the dispatch and general duties.

Do any receive special perks or incentives?

Are they on contract?

Do any have management potential?

How involved is the Owner in running the business?
Currently 100%. The business can however be run by employing staff members to conduct the functions.

When does the current lease end?
November 2021. The business is primarily run as an online store and a new owner can establish business premises anywhere. The business is currently based in the Eastern Cape with a client base nationally. The owner has furthermore suggested that opening in a big city would be a good idea as well as mentioning that the biggest client base originates from Gauteng.

Is there an option of renewal & what period?

What is the annual escalation %?

What are the trading hours?
09:00 - 4:30

What is the square meters of the business?
15 sqm

Is a copy of the lease available?

What are the main assets of the business?
Office furniture and computers

Are any items not included in the sale?

What is their overall condition?
Good as new

The business is listed as an essential service and not effected by lockdown. It has a low running cost and a nationally established client base.

Being online means only reaching a part of the possible market.

Opening multiple branches

Online business restrictions, but this does not effect the business at all.

What is the reason for the sale?
Moving to a SAAS enviroment

Why is this a good business?
Low running cost. All sales are cash upfront. No loss recorded since commencement.

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6 members
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