Fully describe the business's activities?
The business provides bouquets of silk flowers to many customers across the local business spectrum. They have many regular clients where they refresh the bouquets on a monthly basis. Bouquets are also supplied for weddings and funerals and special occasions.
How long has the business been established?
Over 10 years.
How long has the owner had the business?
How does the business operate on a daily basis?
A husband and wife team have operated the business very successfully for many years. However, for personal health reasons and now retirement, they now need to sell. The business has been impacted by Covid, and requires a new team who are able to get the business back onto track as it was prior to Covid, as soon as the lockdown eases.
How are the clients attracted to the business?
Word of Mouth and long relationships are in place. This is an ideal medium for many reception based businesses where they require flowers but fresh flowers are too expensive to maintain.
What Advertising/Marketing is carried out?
The business has no marketing infrastructure per-se' but they do have a very comprehensive data base available, product range and catalogue. The current Owners are also not media familiar, so many promotional opportunities have not yet been exploited.
Does the business have any contract work?
No written contracts in place, but many standing agreements where they call on a regular cycle, refresh, and then invoice the clients.
What competition exists?
There are stores that sell similar products but the quality is inferior, and the price per individual flower is very expensive.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The impact of Covid has severely impacted this business and reduced their distribution significantly as customers prefer not to bring flowers etc into their businesses with the possible threat of contamination. This will change again once more as things when lockdowns are eased.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
All bouquets are well sterilised when placed.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
There are financials up to Feb 2021 and current year to date sales and expenses available immediately.
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
The business requires a new and young team, since the current Owners are both retirement age and one is not well. There is a fair amount of physical work required in the preparation and distribution of the flower arrangements.
What is the total staff complement?
The two Owners only. Currently they make use of a casual worker but only because of the Owners state of health.
What is the square meters of the business?
You will require storage and work space approximately equivalent to a double garage.
What are the main assets of the business?
The sale of the business includes a Peugeot Partner 2 litre van with about 230K km's mileage. The vehicle is in excellent condition, and has been well maintained and cared for. Flower arrangements, loose flowers and vases, tables and many sundries as required by the business.
What is their overall condition?
Very good although some of the bouquets require refreshing, but a new Owner will be trained on all aspects of the business, handling and creating new bouquets and maintenance etc.
Excellent name in the business and wide distribution prior to the recent lockdown. Very large range of flowers and greenery etc for new bouquets, as well as many bouquets ready to be placed. Home-based business with very flexible working hours.
The business requires a fair amount of physical activity and therefore is better suited to a younger team. The business has been badly impacted by Covid-19 precautions.
There are many development opportunities to add in additional products and widen the distribution.
There are no known threats to this current business.
What is the reason for the sale?
One Owner has developed an ongoing illness that limits his ability to assist with the heavy work and distribution which means that the workload rests predominately upon the second Owner who has just retired from a full time position and feels that they are at the right age to hand over the business.
Why is this a good business?
The business includes all the necessary assets to immediately commence trading, and the vehicle is in good condition and should not need replacement for a long while. There is a current client base in place although heavily impacted by Covid, it will most definitely increase once more when things ease up. The present Owners have not been able to be as active as they were previously for a few years now and new Owners will be able to regain the market share. The quality of product offered is comparable to fresh flowers in appearance.
What is the price plus stock and the profit?
The business is selling for R420,000 which includes the vehicle and assets which are listed at R375,000 by the accountant. Despite the Owners not being as mobile as before, and the impact of Covid, they still are trading at breakeven.
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