Fully describe the business's activities?
The business services its localised area with the supply of number plates to both motor vehicle dealers and to the public. The printig/design side of the business designs and prints custom products for clients and includes products such as stickers, business cards, personalised apparel, personalised number plates, signage etc. The business also has a Boxman franchise which supplies cardboard boxes of varying sizes.
How long has the business been established?
Since 1992
How long has the owner had the business?
Since 2017
How does the business operate on a daily basis?
Orders are received for number plates and these are processed immediately and either collected or delivered, by scooter, if the customer is a dealer. Orders are taken for signage and these are produced off various in-house equipment. Larger signage orders are outsourced.
How are the clients attracted to the business?
All word of mouth referrals and personal contact ; google advertising.
What Advertising/Marketing is carried out?
Google advertising
Does the business have any contract work?
Not in writing, but there are clients in the motor-trade business who use them on an ongoing basis.
What competition exists?
There is competition but each have there own set of clients and each attract localised clients.
What are the seasonal trends?
No trends have a marked influence on the business.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Up to date records are available
Are there up-to-date Management Accounts available?
Up to February 2022
What Balance Sheet and Income Statements are available?
February 2022
What percentage of the business is cash/credit?
Cash vs credit has changed to about 65/35, some months one may be a bit higher and vice versa.
Account terms - for those that we still offer terms to there are only a couple on 30 days, the rest are on a weekly. basis.
What is the age analysis of the debtors book?
30 Days
How could the profitability of the business be improved?
By pro-actively approaching dealerships for more business. Current owner has not got sufficient time due to owning another business.
Is Seller finance available and for what amount?
No
What is the total staff complement?
4
Give a breakdown of staff/ functions/ length of service?
1 x Front desk
1 x Driver who also processes the number plates.
1 x Signage assistant who also hepls fit plates
1 x Number plate and signage processor who also assists with deliveries.
Do any receive special perks or incentives?
No
Are they on contract?
2 x Permanently employed
2 x Paid per day
Do any have management potential?
Yes - to be discussed
How involved is the Owner in running the business?
Partially involved
When does the current lease end?
January 2022
Is there an option of renewal & what period?
Landlord would negotiate a new 3 - 5 year lease.
What is the annual escalation %?
8%
What are the trading hours?
Monday to Friiday 08h00 to 16h30
Saturday 09h00 to 12h30
What is the square meters of the business?
105 sq metres excluding back courtyard
Is a copy of the lease available?
Yes
Do you require a licence?
SABS number
What lease deposit and/or other surety is required?
1 Month
What are the main assets of the business?
2 x Motor bikes
Number plate production machines fully owned
Various equipment for signage production
Computer and software
Desks
Counter
Are any items not included in the sale?
No
What is their overall condition?
Good condition
Do any require repairing?
Not currently but ongoing maintenance
How have they been valued ?
Fair market value
Which assets are on lease/HP and with whom?
None
Are they presently insured?
Yes
Strengths?
Very well known and established in the area with many regular clients giving them constant turnover and profit.
Easy to run requiring little supervision
Weaknesses?
The current weakness is that the current owner is only partially in the business.
Signage design for larger jobs require the owners expertise.( this could however be outsourced.)
Opportunities?
Improved and more aggressive marketing.
The Car Hire agencies sold their fleets during Covid and will be restockingn them which will have a positive impact on the business..
Threats?
There are no perceived threats
What is the reason for the sale?
The owner has a second business that he wants to expand and requires the cash resources.
Why is this a good business?
An easily managed business
Well established with many regular clients
Loyal staff who manage the business very well
What is the price plus stock and the profit?
Selling price : R 600 000 including stock
Stock : R 30 000
Annual Net Profit: R 330 900