Fully describe the business's activities?
The business offers the following services: laundry. dry cleaning, key cutting, shoe repairs and alterations.
How long has the business been established?
The owner started this shop in December 2020
How long has the owner had the business?
Since December 2020. The owner owned another laundry for many years in other premises, approximately 40km away. The landlord did not want to renew his lease as he had other ideas with the space. The owner then found this premises and moved his assets.
How does the business operate on a daily basis?
Clients bring in their laundry and dry cleaning, shoes for repairing, alterations and keys to cut.
How are the clients attracted to the business?
The shop is in a busy centre next to the Checkers/anchor tenant.
What Advertising/Marketing is carried out?
The business has not done marketing, it has the signage and there used to be a laundry in the centre.
Does the business have any contract work?
The business does not currently have commercial clients, which leaves an opportunity open to grow.
What competition exists?
There are other laundries in the area.
What are the seasonal trends?
January is normally a slower month. This business had a very good month in May 2021 with sales being steady for the other months.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The business is also making masks and selling it to the public.
Is the business VAT Registered?
The business is not VAT registered.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
The seller has provided us with the income and expenses for the period December 2020 to July 2021.
What Balance Sheet and Income Statements are available?
No balance sheet available. We do have an asset list on file.
What percentage of the business is cash/credit?
100% cash business where clients either pays cash or swipe their cards.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Advertising and getting commercial clients on board.
Is Seller finance available and for what amount?
The seller wishes to get his purchase price in full on the effective date as he wants to open a fast food outlet.
What is the total staff complement?
The owner and his brother with two staff members.
Are they on contract?
The two staff members work alternate weeks.
Do any have management potential?
A buyer will either have to employ a manager or be 100% involved in the business.
How involved is the Owner in running the business?
The owner and his brother are 100% involved in the running of the business.
Any special arrangements for the staff related to the Covid-19 pandemic?
When does the current lease end?
Is there an option of renewal & what period?
The owner signed a 2 year lease. A buyer may negotiate a longer lease with the landlord.
What is the annual escalation %?
What are the trading hours?
Monday to Friday 7am to 6pm, Saturdays 8am to 6.30pm, Sundays 9am to 2pm
What is the square meters of the business?
Is a copy of the lease available?
A copy of the lease will be available during due diligence.
Do you require a licence?
What lease deposit and/or other surety is required?
A two month rental deposit is required.
What are the main assets of the business?
5 washing machines, 3 dryers, sewing machine and over locker, key cutting machine, scale, iron tables, counter and shelving.
Are any items not included in the sale?
All assets as seen in the shop and on the asset list are included in the sale.
What is their overall condition?
The machines are in good working condition.
Do any require repairing?
The machines are being serviced and repaired to ensure smooth working condition.
How have they been valued ?
The seller valued the assets at replacement values.
Which assets are on lease/HP and with whom?
All assets are unencumbered.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
The business is situated in a busy centre, next to Checkers.
The business has only been operating from this premises since December 2020.
Advertising and obtaining commercial clients.
Another hard lock down.
What is the reason for the sale?
The seller wants to open a fast food outlet in Cape Town.
Why is this a good business?
Good location and steady income since starting date.
What is the price plus stock and the profit?
The price of the business is R660,000 which includes stock. Average monthly profit of R35,000 per month.
Annual Turnover Amount between R 500 thousand and R 6 million