Sectors / Category

Annual turnover

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  • Mandate: 35027
  • Added: 22 Nov 2021
  • AFS
  • 183

Water and wellness shop

Gauteng, Pretoria
183
Mandate 35027
Added 22 Nov 2021
R 759,000* ZAR
Stock: R 50,000
Assets: R 228,068
R 7,629 ZAR
Rudi White
Aldes Focus
Gauteng, Pretoria East
Gauteng, Pretoria East
Summary

This is a franchised Water and wellness shop selling pure, healthy, alkaline mineral infused water as well as natural health supplements.

SELLING PRICE AFS
R 759,000* ZAR
Stock: R50,000
Assets: R228,068
R 7,629 ZAR
Summary

This is a franchised Water and wellness shop selling pure, healthy, alkaline mineral infused water as well as natural health supplements.

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Fully describe the business's activities?
This is a franchised water and wellness shop selling pure, healthy, alkaline mineral infused water as well as natural health supplements. The shop is open Monday to Saturday every week and offers delivery of water around the shop

How long has the business been established?
1 year and 11 months The shop opened just before lock down but haven't had a chance to build any significant client base

How long has the owner had the business?
This is a franchisor shop. The franchise started 2018 and this shop was opened a few months before lockdown started (Jan 2020)

How does the business operate on a daily basis?
Clients buy water and supplements directly form the shop as well as offering deliveries to customers

How are the clients attracted to the business?
Mostly word of mouth. The franchise has a presence on social media and does marketing at certain events

What Advertising/Marketing is carried out?
Facebook Website Instagram Marketing at related events

Does the business have any contract work?
Yes. Clients buy monthly water packages which allows them a set number of refills per month.

What competition exists?
There is no direct competition. Other water companies around supply only clean water which doesn't have the added minerals and trace elements required to replace electrolytes lost through rigorous physical activity, making it vital for active men, women & children.

What are the seasonal trends?
In winter months water sales decrease slightly but supplement /health products increase

How did the Covid-19 pandemic impact the business turnover / daily operations?
This shop supplies an essential service. Business was opened and grew during full covid lockdown, but they assisted clients hat focused on health issues

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
More education on the benefits of staying hydrated when sick. This can only be done naturally by adding essential minerals and trace elements

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All documentation is on file

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Since inception

What percentage of the business is cash/credit?
100% cash business

How could the profitability of the business be improved?
More effort marketing the business and selling the benefits of the water. Since this is a franchisor store, any extra marketing or effort will result in increased sales

What is the total staff complement?
The shop operates with 2 staff members

Give a breakdown of staff/ functions/ length of service?
Staff have been working for a year. Both staff handle sales to walk-in customers as well as producing the water being sold to customers.

Are they on contract?
Yes

Do any have management potential?
Yes

How involved is the Owner in running the business?
Owner is not involved because they are focusing on growing the franchise. New owners should be involved to maximise the earnings potential of the shop. The quickest way to grow teh business is education of the benefits and relationship building

When does the current lease end?
December 2023

Is there an option of renewal & what period?
Yes, renewal is possible

What is the annual escalation %?
8%

What are the trading hours?
Monday to Friday 8am to 6pm Saturday 8am to 4:30pm Sunday - closed

What is the square meters of the business?
65 square meters

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
R38,900 deposit is required

What are the main assets of the business?
Purification system and equipment, fridges and generator.

What is their overall condition?
Equipment is in a good condition and only 2 years old

Which assets are on lease/HP and with whom?
No assets are on lease

Are they presently insured?
Yes

Strengths?
This is a unique product in South Africa since they don't just sell purified water. This product is alkaline, micro-structured, mineral infused water. The business also sells health supplements which compliments the use of the health water. Business offers delivery to households and businesses.

Weaknesses?
This store requires a focused marketing effort

Opportunities?
Owner/franchisee needs to build the brand out and market the benefits of the products. The biggest growth thus far is form word of mouth. An effort into expanding the products to nearby businesses, schools, supermarkets will increase revenue With a focus on the health benefits of the products coupled with Covid there is an opportunity to expand since these are lifestyle products

Threats?
Weak performance from a franchisor will compromise brand

What is the reason for the sale?
Franchisor needs to concentrate on building the brand and not running the stores

Why is this a good business?
Store has an 80% retention rate due to the benefits of using the product. Growth has been achieved with word of mouth only. The quality of municipal water is bound to deteriorate further which will make this product a viable and cost effective alternative, especially since it is a unique offering

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AGENCY DETAILS

Aldes Focus

7 members
59 mandates
Gauteng , Pretoria East
Menlyn Corporate Park - 4th Floor, Suite H2 175 Corobay Avenue Waterkloof Glen Pretoria , Pretoria East , Gauteng
Pretoria East
0081

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