"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The Business offers a variety of Design and Social Media Services:
- Social Media Management: This involves executing a tailor-made strategy on Social Media, content creation (shooting and editing videos & photos), managing the clients online pages (writing captions and replying to messages) and engaging with their audience â the works!
They basically take over the responsibility from the business owner to run their Social Media Accounts.
- Digital Marketing: The business also customise a digital marketing strategy to suit the client's growth goals. Whether itâs SEO, email marketing or ad campaigns, influencer marketing or arranging a giveaway campaign.
- Social Media Consultations: They start with in-person or virtual consultations where they set out time to talk strategy, audit the client's accounts, and advise where there is room for improvement. As an add-on, they can create a customised content calendar for the business.
- Brand Development and Graphic Design Services: By compiling a brand guidelines booklet and clarify how to portray the client's business online through choosing design elements, developing the brand personality and defining their voice to build a cohesive brand.
- Social Media Workshops: By hosting Social Media Workshops they equip business owners or one of their employees with the necessary skills to manage a social media page. They teach them the technical side of social media so that they can take control of their businessâs online presence with confidence.
How long has the business been established?
It's been established for 5 years, since 2020 - however only re-registered the company in 2022.
How long has the owner had the business?
5 years
How does the business operate on a daily basis?
Every day looks different, but a week usually contains the following:
Mondays: They have a team meeting for 45 min about the week ahead and discuss any relevant situations with clients or something that they have learned / news in the Social Media World.
Then they work at the "office": admin, design posts, write captions and edit reels - this is not needed bu they like socialising and building a sense of team.
Tuesdays and Thursdays: Work from their own homes. Work on content calendars, strategy plans, meetings with clients and continue with "normal work" such as design posts, write captions and edit reels.
Wednesdays and Fridays: They normally head out to clients to shoot content or have a monthly meeting.
This isn't every single week, but most weeks.
How are the clients attracted to the business?
Word of mouth coupled with their website and through their Instagram account ( Posts are done every week).
What Advertising/Marketing is carried out?
No paid advertisements are done. They just create normal posts on Social Media without any ads.
The owner feels that they can sign much more clients and grow the team if they do some paid ads, but because she recently got a baby and is very involved in supporting her husband, she has a lack of time and too much on her plate.
Email marketing and Meta Ads can make a big impact.
Does the business have any contract work?
Initially, a client would sign a contract for 3 months. Then it becomes an open-ended contract with a 1-month notice for cancellation.
Clients generally do not cancel. If they do, it is mostly because of:
1) It was a startup business, and the business fails
2) The client has now taught themselves, and they try and go internal. Some come back after a while.
What competition exists?
There are many other Social Media Agencies in the bigger Cape Town, but each one is unique and targets different clients.
The clients are spread all over Cape Town and they even have a client in Australia.
What are the seasonal trends?
Usually September - March a lot of new businesses enquire.
Is the business VAT Registered?
Not yet.
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
AFS 2022, 2023, 2024 and 2025.
What percentage of the business is cash/credit?
100% Cash
What is the age analysis of the debtors book?
After 30 days, they add interest and stop the service until the client pays.
How could the profitability of the business be improved?
The business still has a lot of potential that hasn't been tapped into yet.
If the new owner has more time ( the current owner only works 4 half days a week in the mornings. 2 days are spent within the "virtual office from 9:00 - 13:00 ) and do marketing, more clients can be signed up.
Currently she declines work if she does not have capacity. She picks up her child at the day care at 13:15 and the afternoons and evenings are spent on her family.
Every time an employee gets added to the team, it gives an opportunity to sign at least 5 more clients that could improve the profit.
They have turned down a lot of clients, because the owner does not have time to invest into the intern program and equipping a new team member.
In 2024 the business had more staff members but the owner scaled down. She got her first baby and 2 staff members resigned.
Another area that the new owner could visit is employing someone who specializes in Meta Ads Management: they currently outsource these services.
What is the total staff complement?
The owner and 2 other staff members.
Give a breakdown of staff/ functions/ length of service?
Staff Member 1: The Graphic Designer and Social Media Manager. She's been with the business from the start, 5 years ago.
She knows the ins & outs of the company. She carries the load with Social Media design work and manages 5 Social Media accounts / clients. Helps take charge with consultations also - she earns R 19 000 pm
Staff Member 2: Content Creator and Social Media Manager. She was an intern at the end of 2024 and been working for business half a day from the start of this year. She is still finishing her honours in Digital Marketing.
She shoots and edits, videos and photos for the clients and runs social media accounts.
Helps with influencer marketing and also deals with 5 clients. Her salary will be increased to R 12 000 pm.
Do any receive special perks or incentives?
They have 18 leave days and on Fridays they only work until 3pm.
They do get a bonus every year. ( 13th cheque )
Are they on contract?
Yes, requires 2 months notice to resign.
Do any have management potential?
Yes the newer staff member is showing potential.
How involved is the Owner in running the business?
The owner is involved with managing the team, resolving any issues with clients, vision casting and dealing with all administration and finance.
She also has 5 clients, but recently also got her first child and the team helped her with the workload.
When does the current lease end?
The business had office space during the AFS 2025 year. However - the seller decided to only rent desks in a " co-working / virtual space " environment, as and when needed.
The staff works mostly from home and they meet once a week, face-to-face.
What are the trading hours?
8am - 5pm
What are the main assets of the business?
The only equipment is an iPhone, phone mics and a gimbal.
What is their overall condition?
Very good
How have they been valued ?
Fairmarket Value
Are they presently insured?
No
Strengths?
- Dynamic team with different skillsets
- Amazing customer service and relationships with their clients: clients rarely cancel contracts unless they are in financial distress.
Weaknesses?
- Lack of time and investment from the owner's side, therefore no one is driving a vision to grow
- They can improve their content creation skills
Opportunities?
- They regularly get enquiries without doing direct marketing
- Digital Marketing School around the corner: internships and potential future employees
- META Adds - growth by employing someone who has the skill and who can also manage clients.
Threats?
- Social Media Agencies with professional videographers and photographers
What is the reason for the sale?
The owner loves the company and gets excited if she thinks of all the potential and growth that can still take place.
But unfortunately, do to a lack of time and wanting to focus on their family and supporting her husband, she wants to sell.
They now have a toddler and are planning on having another baby in 2025.
Why is this a good business?
The industry of digital marketing and the need for Social Media Assistance are growing every year.
This company has excellent foundations that were laid from the start: strong branding, great customer service, lovely company culture and staff growth is important.
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