Fully describe the business's activities?
The business trades as a craft market, gifts and decor store in an upmarket Northern Suburb of Sandton. This business has a unique revenue model in that it rents out space in its premises to crafters and entrepreneurs which produces a nice amount of passive, recurring income every month. The business also sells some of its own stock.
How long has the business been established?
The business is 20 years old having been established in 2001 by the current owner.
How does the business operate on a daily basis?
The owner is involved in the store on adaily basis but has reliable staff who are able to run the store in his absence.
How are the clients attracted to the business?
The business is active on Facebook, Instagram and social media in general. There is also marketing by the shopping centre. However, the business is an institution in the area after 20 years of trading and is very well known by all residents in the area.
What competition exists?
There is no direct competition in the area.
What are the seasonal trends?
Clebration days such as Christmas, Valentines, Mothers and Fathers Days are very busy times for the store. During the year it is very busy from October onwards leading up to Christmas
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
Normal VAT returns and documentation is on file.
Are there up-to-date Management Accounts available?
Yes, there are up-to-date management accounts.
What percentage of the business is cash/credit?
About 80% of the sales is by card and the balance of 20% is cash.
What is the age analysis of the debtors book?
The business does not run a debtors book. All customers pay up front.
How could the profitability of the business be improved?
New products and new stock always attracts new business.
What is the total staff complement?
There are two members of staff plus the owner.
Do any receive special perks or incentives?
A bonus is only paid at management's discretion depending on how good business has been.
Are they on contract?
Yes, they have letters of appointment.
Do any have management potential?
Yes, the one sales assistant helps manage the store currently.
How involved is the Owner in running the business?
The owner is in the business on a daily basis.
When does the current lease end?
The current lease end in March 2022.
Is there an option of renewal & what period?
Yes, 3 to 5 years.
What is the annual escalation %?
The nnual escalation is at 8% per annum.
What are the trading hours?
Mon-Fri: 9.00 am to 6.00 pm. Sat: 9.00 am to 5.00 pm. Sun: 9.00 am to 3.00 pm.
What is the square meters of the business?
160 square meters.
Is a copy of the lease available?
Yes, a copy of the lease is available.
Do you require a licence?
No special licence is required to operate this business.
What are the main assets of the business?
The main assets of the business Fixtures and Fittings and the Point of Sale System.
What is their overall condition?
Very good to excellent. Very neat and well-maintained store.
Which assets are on lease/HP and with whom?
All assets are fully paid for.
Are they presently insured?
Yes, the business is comprehensively insured.
Reputation. Well-known in the area. Uniqueness of products sold. Excellent location.
Consumer spending constraints at times.
New products and new ideas always brings new business in this store.
Normal economic conditions but with the longevity of this store over 20 years it is well-able to ride out any bumps in the economy.
What is the reason for the sale?
Why is this a good business?
History, location, uniqueness. No real competition in the area. Good solid profits which have given the owner a very good lifestyle.
What is the price plus stock and the profit?
The asking price for the business is R1.92 million plus stock of approximately R80 000 = R2 million asking in total.
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