Fully describe the business's activities?
The business manufactures, via subcontracting, high quality storage bins that are over-bonnet storage solutions for parking bays and garages. The units stand on height adjustable legs, to accomodate a vehicle parking in the parking area, with its bonnet under the bin, thereby adding value, storage, convenience and space to any property.The units make use of unused space in a garage or indoor parking bay by providing extra storage right above the bonnet of your vehicle. High quality, flatpack design, simple to install and use and move, either to buy or rent or lease..
How long has the business been established?
Started March 2014 with the concept 6 Months to set up. Launch November 2014.
How long has the owner had the business?
100% Ownership ; 7 years since inception.
How does the business operate on a daily basis?
Two parts to the business. - Sales and rentals. 1) New sales - Supply information; site visit if necessary; quote;scheduling; installation. 2) Rentals - all admin associated with this.
How are the clients attracted to the business?
By the use of : Corporate identity branding Face to Face presentations Online - Websites and videos Flyers and e-mailers Exhibitions
What Advertising/Marketing is carried out?
Pamphlet drops Monthly emails
Does the business have any contract work?
Rental book - pure rental - rent to own Larger properties - contracts with developers
What competition exists?
What are the seasonal trends?
Increase in sales by +- 20% in November/December.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Turnover fell marginally only.
Is the business VAT Registered?
What VAT documentation is on file?
Bi - monthly returns all fully up to date.
Are there up-to-date Management Accounts available?
Yes - up to June 2021. 2020 Management account includes a loss of R 400k as a result of a main supplier being liquidated.
What Balance Sheet and Income Statements are available?
2021 Annual Financial Statements are available.
What percentage of the business is cash/credit?
A 50% Deposit is required per unit with the balance on installation. Approximately 5% is cash.
What is the age analysis of the debtors book?
Minimal - no issues
How could the profitability of the business be improved?
Negotiations with suppliers on volume. Increase the rental charge. Bulk sales and installations.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Manager/owner Manager Bookeeper Operations/Installation Supervisor Industrial designer Casuals - 1 to 4 dependant upon volume of work Length of service - all greater than 3 years, most since inception, so full continuity of skills and knowledge.
Do any receive special perks or incentives?
Cash bonus on big contract completion - discretionary in December.
Are they on contract?
All on contract - this is a variable cost depending on work required.
Do any have management potential?
Manager can run the business. Ran it successfully for 4 months when owner away.
How involved is the Owner in running the business?
20%, 5 days per week
When does the current lease end?
Month to month
Is there an option of renewal & what period?
To be negotiated
What is the annual escalation %?
What are the trading hours?
What is the square meters of the business?
80 sq metres
Do you require a licence?
No licence required to operate the business. An Export Licence is already in place.
What are the main assets of the business?
Yes - trademarks. - IP - www - autocad - designs.. - IT - CRM Database. Tools and equipment. Rental stock / demos / new stock.
Are any items not included in the sale?
No - lock, stock and barrel.
What is their overall condition?
Good - 100% serviceable and kept in good condition.
Do any require repairing?
How have they been valued ?
At cost With 5 year depreciation.
Which assets are on lease/HP and with whom?
Are they presently insured?
Storage always needed. Unique and innovative solution. Well designed and easy to manage units. After a number of design changes and improvements, the best sytem is now available. Easy installation.
Export - SA production costs low. Create storage in every parking bay/garage - adds value to properties.
What is the reason for the sale?
The owner has spent 7 years perfecting the system and feels the time is right to follow other overseas opportunities which have opened for him.
Why is this a good business?
The product is a simple,well designed addition to any parking bay/garage, adding value to the property by offering additional storage space without compromising the parking area. An excellent return is made per unit and good annuity income can be earned by unit rentals.
What is the price plus stock and the profit?
Selling Price : R 1 800 000 excluding stock Stock : R 687 000 Average monthly net profit : R 40 626
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