Fully describe the business's activities?
This new license for a biltong shop in your area will include with the initial investment a turnkey project that includes the design, project management shop fitting, signage, branding, all processing equipment and initial meat product and fast moving stock
How long has the business been established?
This business was started by the Licensor in 2020 in the very start of the Covid pandemic.
How long has the owner had the business?
How does the business operate on a daily basis?
The Owner or the manager will lock up and close the shop . Selling to clients products of high quality and competitive prices. The stock needs to be checked daily and orders to be processed.
How are the clients attracted to the business?
We target clients by offering them high quality cured meat (biltong)&meat products at market related pricing.
What Advertising/Marketing is carried out?
Advertising is done by the window signage and light box at the shop. A marketing budget of R6900 is included in the initial license fee. The lisensor's marketing initiatives include online web-based marketing(social media),location bank managing on google, flyers, Mr D.The owner needs to do promotions and marketing on a regular basis.
Does the business have any contract work?
The Licensee can set up contracts for hampers, biltong packs to corporates or even schools.
What competition exists?
There is a number of independent standalone biltong stores as well as national retail chains. What makes us different is that we have standardized the production/ recipes so that irrespective which store you visit , you will enjoy the same high quality tasty products.
What are the seasonal trends?
There are not seasonal trends except for a little quitter when it rains.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid-19 has not impacted on the business at all, in fact the business has increased.
Is the business VAT Registered?
The Licensor is registered for VAT and the price includes VAT. The Licensee does not need to registered for VAT
Are there up-to-date Management Accounts available?
Detailed Financial model in Excell can be provided. The licensor will go through the model at the initial business overview meeting.
What percentage of the business is cash/credit?
To steer away from cash as much as possible the Licensor will assist Licensee to link the card machine direct to there bank account.
How could the profitability of the business be improved?
Local marketing is needed and is important from the 1 day.
Is Seller finance available and for what amount?
What is the total staff complement?
One staff member will be needed , depending if the Owner will be involved on a day to day basis.
Give a breakdown of staff/ functions/ length of service?
The following functions needs to be done by the staff: The serving of clients, the cutting of biltong as ordered, selling and promoting of other products in shop, ensure the hygiene standards are maintained, and Check and maintain stock levels to re-order.
How involved is the Owner in running the business?
If the Owner is not involved full time , the owner needs to support the staff with managing the stock control, and ensuring that the staff do what is expected from the Owner and the Brand.
When does the current lease end?
A new lease will be signed after the Licensor finds a suitable location and negotiates the lease with the landlord on the licensee ' s behalf. A location with high visibility and accessibility with high foot traffic will by of most importance and the Licensor will assist the Buyer in this regard
What is the annual escalation %?
Depending on what was agreed upon in the lease agreement
What are the trading hours?
Normal expected trading hours will be Monday to Friday 08h00 till 18h00 Saturday 09h00- 13h00 Some Shopping Centers required the shops must be open on Sundays.
What is the square meters of the business?
Anything from 20sqm to 60 sqm
Do you require a licence?
Yes, with handling food products onsite the Licensor will assist in obtaining the License from Department of Health . The License agreement needs to be signed with the Licensor for the using the brand name and supply of biltong and related meat products.
What lease deposit and/or other surety is required?
The deposit that the Landlords require are normally equal to 2 months rent.
What are the main assets of the business?
The business assets that are part of the setup cost will be the fridges, shop fitting, slicers till and counter.
Are any items not included in the sale?
The deposit and lease cost payable to the Landlord
What is their overall condition?
All equipment is brand new
How have they been valued ?
The New purchase price of the assets is about R107 000
Which assets are on lease/HP and with whom?
There is a huge demand , the setup cost is affordable, the management of the business is easy and have the support of the Licensor. A flat administration fee of 5% is charge at the time of ordering of meat products (biltong). Much flexibility on operational and independence applicable comparing to that of a franchised business. Training on site will be done by the Licensor that will includes supporting retail floor work, training of staff and creating schedules for the staff.
If the location is not ideal, it can take a little longer to ramp the business up to the next level.
To negotiate contracts with Schools and Corporate and sell hampers. Selling related and fast movers product in the shop.
The main anchor stores in shopping mall's like Food Savers, Pick & Pay selling at low prices.
What is the reason for the sale?
The selling of the Licenses is expanding the Brand being a winning concept. This business can generate a steady income stream with a good annual return on investment
Why is this a good business?
The beauty of this business is essentially the demand for quality biltong. The setup cost is low as well as the running cost.
What is the price plus stock and the profit?
The total price including stock is R169000 plus VAT Total of R 194266 ( Incl VAT) A total amount a maximum of R300 000 is the recommended amount to start the business. The target operating profit can be reached earlier than what is budgeted. The extra funds will help finance till break-even point till a monthly income is earned .Extra stock can be bought when needed.
Annual Turnover Amount between R 500 thousand and R 6 million