How does the business operate on a daily basis?
The business day starts with morning meetings where targets are set for the day.

Collection of pallets, stripping of pallets and manufacturing of products happen throughout the day.

Online order fulfillment, quotes etc. happen throughout the day.

How are the clients attracted to the business?
The business is a proudly South Africa company and their aim is to lessen the environmental footprint of their costumers. Customers are attracted by this ecofriendly outlook and also the quality of their products .

What Advertising/Marketing is carried out?
The business has a large online presence with over 6000 followers on Instagram and over 1000 on Facebook. Most of their marketing is done on social media and they receive many enquires about their products from these channels. The business also sends monthly emails regarding new products to clients and have regular promotional give aways . They have many recurring orders from large chain stores and online sellers. They also place promotional flyers inside all shipped orders.

Does the business have any contract work?
No, they have permanent listings with many large retail chain stores and online distributors.

What competition exists?
This business is considered the leading maker and supplier of these specific products in South Africa. One smaller company exist that provide the same products, but in small quantities that does not influence the business significantly.

What are the seasonal trends?
The business records a spike in sales from June to December each year, however they sell throughout the year. Their slowest months are usually January through March when most big businesses and chain stores do budgets and financial year ends.

Is the business VAT Registered?
Yes

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

What Balance Sheet and Income Statements are available?
Standard Balance and Income sheets from the accounting package.

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

How could the profitability of the business be improved?
Reducing costs, increasing turnover, increasing productivity, and increasing efficiency with labor.

Synergy for example by moving the business to a buyers premises can decrease overheads.

The business can be moved anywhere in South Africa, but key staff members must be retained.

Is Seller finance available and for what amount?
No

What is the total staff complement?
7 total.
3 Malawians and 4 South Africans registered with the furniture bargain council

In busy period extra hands are needed but these are temporary. Maximum staff members at anyone time is 12.

Give a breakdown of staff/ functions/ length of service?
Employee 1 : Their factory manager, ensures the day to day operations are completed and is loyal and extremely trustworthy. He is also a hard worker. Currently employed for 5 years

Employee 2: General worker in factory. Currently employed for 5 years.

Employee 3: Assembler of products. Currently employed for 3 years.

Employee 4: General worker, does delivery and order fulfillment daily and assembling of products. Currently employed for 4 years.

Employee 5: General worker. Currently employed for 5 years.

Employee 6: General worker. Currently employed for 6 months.

Employee 7: General worker. Currently employed for 1 year.

Do any receive special perks or incentives?
They are listed with the barging council - hence they receive a holiday payment and pension ( South Africans only ) this is incentive enough to complete orders and to be at work on time.
They also have incentives at the end of the year for the staff and a cash reward for the most productive team.

Are they on contract?
Yes , staff will stay on with sale

Do any have management potential?
Yes, two senior employees do have.
Both are trustworthy and hardworking

How involved is the Owner in running the business?
They are there, daily managing the business and dealing with all operations however due to the factory manager doing a fairly large portion of the work they have flexibility with hours .

When does the current lease end?
6 months from now - can be renewed. Owners are relaxed and no issues in general

Is there an option of renewal & what period?
Yes, lease is usually a year however the land lord is flexible and accommodating they have been in the same spot 5 years

What is the annual escalation %?
6%

What are the trading hours?
8am - 5pm
Monday to Friday

What is the square meters of the business?
500 square meter roughly and outside area.

Is a copy of the lease available?
Yes

What lease deposit and/or other surety is required?
The new owner can just take over our lease

What are the main assets of the business?
Tools in the factory and machines needed for operations. All wood and product already made.

Are any items not included in the sale?
Multi meter
Mic welder

What is their overall condition?
Everything is in working and running condition.

Do any require repairing?
Just general up keep of compressor service

How have they been valued ?
Fair market value.

Are they presently insured?
Yes, the building and tools are currently insured by OUTsurance (Content and fire insurance).

Strengths?
They have a great team of staff, it has taken a few years to find the right staff.
Business with chain stores and recurring orders.
Large online platform
Working environment is positive
Daily task have long been established and staff know the process and the work is repetitive

Weaknesses?
Production line can get overwhelmed and fall behind on deadlines if not managed properly.

Opportunities?
Amazon South Africa 2024 and SARCDA Trade shows also Proudly South African trade shows

Threats?
Knock off products - however trade mark is pending will be completed in 2024

What is the reason for the sale?
They owners want to move into a new direction and start a family.

Why is this a good business?
The business is good because it has afforded the sellers, the lifestyle they wanted as owners. The business is profitable.
They have solid contacts with their chain stores, insuring constant orders .
After Covid many businesses closed but they have been overwhelmed with orders ever since.
They always struggle to keep up with their orders.
Everyone is on the go green trend and they have stood the test of time and the quality of their products are excellent .
They have a simple business and a simple product and focus on volume .