Fully describe the business's activities?
A sophisticated ladies fashion and shoe store of many years standing in a very busy regional mall of the Northern Suburbs of Johannesburg. This store is part of a very well-established group which wishes to expand with like-minded entrepreneurs using the franchise model. Be in business for yourself but not by yourself.
How long has the business been established?
The group has been operating since 1986 and this is one of its earlier stores that is for sale. Very wll-established!
How does the business operate on a daily basis?
There is a manager with 5 other staff who run the store on a daily basis.
How are the clients attracted to the business?
The group is very active on social media with store-specific databases. They also work very closely with the marketig teams of the centres in which they have a presence.
What Advertising/Marketing is carried out?
There is a loyalty programme in place which is being tweaked all the time. Influencers are also used to promote the products.
What competition exists?
Although there is competition in the market this group has exclusivity of certain brands. 80% of its products are imported via Italy and Europe with some manufacturing in China.
What are the seasonal trends?
The beginning of each season is very busy with September to November and February to April being really busy months.
Is the business VAT Registered?
Yes, the business is VAT registered.
Are there up-to-date Management Accounts available?
Yes, there are up-to-dtae management accounts with forecasts for the next five years.
What percentage of the business is cash/credit?
The majority of revenue is earned via credit cards and debit cards with about 10% cash
How could the profitability of the business be improved?
The loyalty programme is growing and being tweaked with instant discounts soon to be a reality for a loyal clients.
What is the total staff complement?
There are 6 staff members including the manager.
Do any receive special perks or incentives?
The staff earn a basic salary plus 4% commission on their sales. The manager earns a small additional percentage on the total sales of the store.
Are they on contract?
Yes, they all have letters of appointment.
Do any have management potential?
There is already a manager in place.
How involved is the Owner in running the business?
The current owners visit the store about once a week.
When does the current lease end?
There is a lease in place. The group has an very good relationship with all its landlords.
Is a copy of the lease available?
Yes, a copy of the lease is available.
What are the main assets of the business?
Point of Sale Software, Computer Equipment and Shop Fittings and Fixtures.
Are they presently insured?
Yes, the business is comprehensively insured.
Excellent reputation. Well-known in the mall and in the community. Loyal staff. Strong social media presence. Knowledge of stock purchasing of Head Office. Marketing savvy of Head Office. Buying power of Head Office.
Normal economic conditions that can affect business but this group is always ahead of the curve.
The loyalty programme stands to be a potentially very important generator of revenue from loyal clients. The targeting of up-and-coming younger professional women is potentially very lucrative.
None really. History, longevity and profitability speaks for itself.
What is the reason for the sale?
The Group has decided it wishes to expand and grow via franchising and is therefore looking for like-minded entrepreneurs to grow with on this exciting journey.
Why is this a good business?
Part of a larger Group. You are not in business by yourself but you are in business for yourself. Strong knowledge of purchasing of products from overseas. Buying power. Channels for logistics.
What is the price plus stock and the profit?
The asking price is R2 million plus stock of R1.5 million = R3.5 million in total. The Profit of the business is R1.5 million per year.
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