Fully describe the business's activities?
This business sells 2nd hand books. The range of books are across the board. From day to day reading to educational books. The customer base therefore consists of your story reader to students at school or university. The books are mainly bought from customers at a price, i.e. they sell a book to the store and buy another book or several. Pricing structure is well explained and profitability is good.
How long has the business been established?
There are 2 stores here, both on the West Rand and about 10km apart, each servicing a different clientele. The owner started the business in 2014. SEE NOTE AT BOTTOM OF REPORT FOR PRICE.
How does the business operate on a daily basis?
Clients either donate books or exchange books. No money are paid out to clients who exchange books. Credit/ discount is given to these customers on there new purchases. Example; Customer brings 2 books for exchange. He is paid e.g. R5 per book. He then buys 2 or more books at a price of R60. The client will then receive a discount on his purchase of R10. Profit R50. Most books are actually donated to the store by clients and not exchanged. Hence the possibility of expanding footprint without major capital outlay. The seller estimates that one can open another 7 outlets in 2 years just from books donated.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The owner operates these stores as a sole proprietor on a cash only basis. NO CARDS or accounts at all. There are no formal structures or any computerized records in place, everything in the business is done manually. Records are however well kept of daily to monthly and yearly sales, and can be viewed during the dd.
What percentage of the business is cash/credit?
CASH ONLY , NO CARDS OR CREDIT. No cash register or computer exist in this business.
What is the total staff complement?
Each of the stores are managed by one staff member. The owner is involved but spends little time at the business as he is involved in much charity work.
When does the current lease end?
The businesses are housed in homes with business rights and situated in very visible spots.
Is there an option of renewal & what period?
Yes, as required by the buyer.
What are the trading hours?
The one store trades 7 days a week and the other 6 days.
Good profitability and easy to manage in a good environment
It would be an advantage if a buyer had book knowledge but not essential.
Easy to open more stores.
What is the reason for the sale?
The seller is fairly aged and wants to focus on his charities.
Why is this a good business?
100% cash, no credit or cards, easy to expand, doesn't pay for stock. Proces to be explained.
What is the price plus stock and the profit?
There are 2 stores for sale here; 1. selling price of R660k. this includes stock of approximately R600k. Profit +- R170k py 2. This store is larger and for sale for R1540m. This includes stock of approximately R1m. Profit +- R450k py
Annual Turnover Amount between R 500 thousand and R 6 million