Fully describe the business's activities?
Retail business re-filling ink cartridges and selling generic and original ink/toner cartridges
How long has the business been established?
10 years +, the business was previously a franchised ink cartridge business
How long has the owner had the business?
The business has been in the family since 2011 and with the current owner since 2017
How does the business operate on a daily basis?
The staff open and close and run the business daily.
How are the clients attracted to the business?
The business has many repeat customers
What Advertising/Marketing is carried out?
Word of mouth and pamphlets are available inside the shop
Does the business have any contract work?
What competition exists?
No fillers or generic sales competition in the Mall, Original cartridges / toners are sold at Game and Hifi Corporation
What are the seasonal trends?
December months are quieter as most businesses and schools close.
How did the Covid-19 pandemic impact the business turnover / daily operations?
During level 5 the shop was closed for 5 weeks
Is the business VAT Registered?
The business is VAT registered
What VAT documentation is on file?
VAT documents will be made available during due diligence
Are there up-to-date Management Accounts available?
The owner will provide up-to-date management accounts to a serious buyer
What Balance Sheet and Income Statements are available?
February 2021 financial statements are on file
What is the age analysis of the debtors book?
Cash sales, no debtors
How could the profitability of the business be improved?
Advertising, online presence and active and involved owner.
What is the total staff complement?
Three staff members
Give a breakdown of staff/ functions/ length of service?
One staff member started in 2011 in the family business, the one in 2014 and the other in 2019.
Are they on contract?
The staff are on employment contracts
Do any have management potential?
The staff are able to manage the business in the absence of the owner
How involved is the Owner in running the business?
Minimal day to day management. The owner is mostly seeing to the bookkeeping and financial matters of the buisness.
When does the current lease end?
31st March 2022
Is there an option of renewal & what period?
There is an option to renew for a further 3 years
What is the annual escalation %?
What are the trading hours?
Monday to Friday 9am to 6pm Saturday 9am to 5pm Sunday 9am to 2pm
What is the square meters of the business?
Is a copy of the lease available?
A copy of the lease agreement is on file
Do you require a licence?
No license is required.
What lease deposit and/or other surety is required?
To be negotiated with the landlord
What are the main assets of the business?
Shop fittings include built in counter/cupboards/display shelves/lightboxes and signage. Computer and printer Microwave and bar fridge Tata Indica
Are any items not included in the sale?
All assets as seen on the asset list are included in the sale
What is their overall condition?
The Tata Indica is old but in running condition
Do any require repairing?
The Tata vehicle has a dent on the passenger door
How have they been valued ?
The owner valued the assets
Which assets are on lease/HP and with whom?
The assets are unencumbered
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The business and its assets are insured
Long established business with many loyal customers. Located in a busy shopping mall Staff run
The owner does not spend enough time in the business
Online advertising Owner involvement
General economic climate
What is the reason for the sale?
The business is not a good fit for the owner who wishes to move on
Why is this a good business?
Long standing business with many repeat clients. The staff manage the business day to day
What is the price plus stock and the profit?
The price is R392,000 plus stock of R38,000 (weekly stock-taking is done) Total of R430,000 The owner's drawings are R20,000 pm
Annual Turnover Amount between R 500 thousand and R 6 million