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?
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?
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.
Annual Turnover Amount between R 500 thousand and R 6 million