"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
A range is done 2 â 3 times per year. At the start of range I meet with fabric suppliers to view the seasons fabrics. Sampling fabric is ordered and bulk fabric is reserved. I then draft the patterns, purchase sampling trims and collect the sampling fabric from the supplier. The samples are taken to the cmt factories to be made up. Once all samples are made up and the range is confirmed, the samples are photographed at a studio by a professional photographer, models and make up artist are sourced by me. Once images are received from the photographer, the catalogue is put together by me on Photoshop, the garments costings are worked out (number of trims and price, rating per garment based on fabric width and pattern, cost per meter of fabric, cmt cost, swingtags etc) and then I work out the prices of the styles and draft an order sheet on excel. The catalogue and order sheet is emailed to my direct customers as well as my two agents who email their customers (they take a comssion of sales). I then meet with any customers who wish to view the samples. Selling of the range takes about 1.5/2 weeks. Once all orders are sent to me, I invoice the customer and they pay a deposit. I also compile the orders and do a bulk fabric and trims order. Any fabrics that require pre-shrinking are washed. I print and fill out a cut-sheet for each style, and the cut-sheets, patterns and samples are sent to the graders to have markers printed. Once the markers are ready, the markers, patterns, samples, fabrics and trims are delivered to the factories. Production takes about 6 weeks. I collect each style as it is ready, check, fold, tag and pack in a box per customer. Some customers like several drops of their order, others like to wait for the entire order to be ready before delivering. Once all stock is delivered the customer is invoiced and they pay the balance of their invoice including the courier fee.
How long has the business been established?
2011
How long has the owner had the business?
2011
How does the business operate on a daily basis?
Every day is different. Some days there is no work at all some days are very busy, it depends on what stage in production I am at.
How are the clients attracted to the business?
We have quite a good following with loyal customers and regulars. The brand is well known.
Does the business have any contract work?
No
What competition exists?
Other local designers, but we donât feel the effects of competition, agents do not take on brands that are too similar.
How did the Covid-19 pandemic impact the business turnover / daily operations?
We could not oerate during level 5, delays in shipments from overseas for fabric and trim supplies, so the first year of covid there was a drop in sales but we have made a strong comeback and covid does not have a present affect on our turnover/trade.
Is the business VAT Registered?
No
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
Bank Statements
What percentage of the business is cash/credit?
No cash sales are made however we have accounts with suppliers and we pay our factories in cash.
How could the profitability of the business be improved?
Marketing and advertising, larger range, online platforms such as Zando and Superbalist.
Is Seller finance available and for what amount?
No
What is the total staff complement?
At the moment 1 but it is not a necessity
Give a breakdown of staff/ functions/ length of service?
I have a temp that comes during the 6 week period when factories are busy manufacturing the garments, she does quality control, folds the garments and puts swingtags on.
How involved is the Owner in running the business?
Very Involved
What are the main assets of the business?
Rails, hangers, patterns, box sealer
What is their overall condition?
Very Good
Do any require repairing?
No
How have they been valued ?
Based on cost
What is the reason for the sale?
I have lost the passion for the business despite the potential to take it to new heights
Why is this a good business?
There is so much potential to increase turn over, its easy to run, its creative thus enjoyable for most. It is extremely flexible with working hours In between seasons you have a few weeks of absolutely no work. You can work as hard as you want, the smarter you work the more money you make, the groundwork is there, the demand is there, you just need the energy and passion to supply.
What is the price plus stock and the profit?
Sales price is R845 000 with a monthly profit of R47 000
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