How does the business operate on a daily basis?
The Owner visit to the the business daily on a part time bases. He schedule the production according the orders received. The quality of products are checked and deliveries are planned .

How are the clients attracted to the business?
Clients are attracted by word of mouth. Quality products at a good price attracts clients.

What Advertising/Marketing is carried out?
Social media and Facebook

Does the business have any contract work?
A contract is offered by the Seller to be negotiated..

What competition exists?
There are expensive brand manufacturers and very cheap sub standard products supplied to the mattress market.

What are the seasonal trends?
The winter is average and the summer is the busiest time of the year..

How did the Covid-19 pandemic impact the business turnover / daily operations?
The Turnover was lower

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Marketing was done and new clients came on board.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
The VAT returns are on file.

Are there up-to-date Management Accounts available?
The financial statement till 28 February 2022 will be ready in July 2022

What Balance Sheet and Income Statements are available?
Financial statement till 28 February 2021 is available

What percentage of the business is cash/credit?
20% Cash and 80% on Credit.

What is the age analysis of the debtors book?
Strictly 30 days.

How could the profitability of the business be improved?
A show room can be opened as a out let for the factory.. Retail shops can be Franchised. Effective marketing and increasing of capacity .

Is Seller finance available and for what amount?
No

What is the total staff complement?
There are 4 permanent staff members and casuals are used as and when needed

Give a breakdown of staff/ functions/ length of service?
The functions of the staff are Tape edge operators, Spraying of glue , Base making and Making of base covers.

Do any receive special perks or incentives?
No

Are they on contract?
Yes

Do any have management potential?
Yes

How involved is the Owner in running the business?
The Owner is part time involved and if the new owner is involved on a full time bases the business will increase production and the the business will grow. .

When does the current lease end?
The current lease ends July 2022 and a new agreement needs to be negotiated with the landlord as part of the due diligence

Is there an option of renewal & what period?
Yes

What is the annual escalation %?
Currently 6 % pa

What are the trading hours?
08h00 till 16h00

What is the square meters of the business?
280 square meter and storage area

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
One month deposit applicable

What are the main assets of the business?
The Trailer is part of the sale. The equipment that are included in the sale is the generator, compressor, sewing machine, tape edge table, air tools , saw,ect.

Are any items not included in the sale?
The vehicle for deliveries is not included in the sale.

What is their overall condition?
Good and neat

Do any require repairing?
No

How have they been valued ?
The Owners secondhand value.

Which assets are on lease/HP and with whom?
None

Are they presently insured?
Yes

Strengths?
The factory has huge growth potential. There are a vey big market to be explored. The factory delivers top quality products to the market. The quality products are very good priced in the market

Weaknesses?
The Owner is only managing the factory on a part time bases because of his other business interest.

Opportunities?
Installing CCTV cameras and production systems will improve the managing of the factory. Franchising of retail shops can be done. Exporting to SADEC countries can be explored Marketing to Hotels, guest homes and many more will improve sales. A quilt machine and spring assembly machine will save cost and help increase production.

Threats?
The economy

What is the reason for the sale?
The Owner wants the focus on the retail industry

Why is this a good business?
This business has lots of potential to grow in a essential market.

What is the price plus stock and the profit?
R 1 000 000 plus R100 000 of stock