How does the business operate on a daily basis?
The company sends requests for quotations to potential clients via an online app called Starlite.
The Starlite app is a mobile/PC application designed to design, cost, order, and manufacture aluminum windows and doors.
It lets users generate accurate costings and ordering schedules based on the Crealco product range.
It calculates materials and adds the job to a schedule.
Teams assemble at the factory once materials are purchased.

They request a 70% deposit from clients to cover materials and wages.
Profit margins are +- 30% per job.

Once completed, the team goes to the client to install and complete the wet works. (plastering)
Once completed and the wet work dries, the team goes back to clean the windows and silicone-seal reveals

How are the clients attracted to the business?
Sales rep, word of mouth, WhatsApp, Newsletters/email, social media pages, lead generation through Chat GPT, website, email.

What Advertising/Marketing is carried out?
Social media posts in community groups, flyer distributions, website, WhatsApp community groups

Does the business have any contract work?
No

What competition exists?
Minimal competition in the surrounding area.

What are the seasonal trends?
There is usually a slight dip during rainy seasons.
However, they tend to focus more on servicing and maintenance during difficult months, or try to get work with companies that need new internal office space and partitioning.

Is the business VAT Registered?
Yes. Vat Reg document and tax clearance certificate on file.

What VAT documentation is on file?
Currently under the 2.4 mil vat threshold.

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

What percentage of the business is cash/credit?
No credit given . All jobs have a 50% deposit with balance on completion.

What is the age analysis of the debtors book?
Not applicable

How could the profitability of the business be improved?
Sales is the main driver.
The business needs more sales reps on the road, or an owner-operator who can spend more time marketing the business.
Contacting construction companies and registering for tender applications

Is Seller finance available and for what amount?
No

What is the total staff complement?
They have a staff of 10 workers who can handle manufacturing and installation.
None of them are permanent; they are contracted only when we have projects.
The permanent staff comprises only actively involved directors.

Give a breakdown of staff/ functions/ length of service?
The technical team focuses on assembly and manufacturing in the factory.
They are all capable of working on the machines and manufacturing windows and doors, including glazing and cutting glass.

Do any receive special perks or incentives?
No

Do any have management potential?
Yes

How involved is the Owner in running the business?
Very involved with day to day running and purchasing of material.

When does the current lease end?
The lease is on going at R8500 per month / excl water/electricity

What is the annual escalation %?
7%

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

Is a copy of the lease available?
Yes

Do you require a licence?
No

What are the main assets of the business?
Machinery for the production of aluminium windows and doors.
Double header saw / Crimper machine / Bead cutting machine / Phuenmatic rivit gun / compressor

Are any items not included in the sale?
Hand tool box

What is their overall condition?
Very good

Do any require repairing?
No

How have they been valued ?
Through the suppliers of the machines.

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

What are their settlement amounts?
None

Are they presently insured?
No

Strengths?
Machinery can mass-produce windows and doors, as the double-header machine cuts everything to spec faster than handheld tools. The crimping machine also allows for quicker turnaround time when finishing off window frames.
The business has become reputable and recognized in the area and through their suppliers.
The glass supplier is directly opposite the premises, and the aluminum material suppliers are about a 15-minute distance from the factory.
All suppliers deliver to site or the factory.
The business foundation has been set.

They are registered with AAMSA/SAGGA to issue certified glazing certificates to clients, as required by building regulations.
They are also registered for PAYE and workmen's compensation with Rand Mutual Assurance.

Weaknesses?
Sales and administration.
The owner recommends a full-time receptionist/admin employee and a sales rep.

Opportunities?
The location offers close access to the Tokai, Constantia, Muizenberg, and Wynberg markets.
They also operate in the Northern Suburbs and have potential opportunities along the West Coast.
Easy access to all major highways. The Southern Suburbs are experiencing growth in housing developments.

Threats?
Chinese quality material and foreigners quoting below cost.

What is the reason for the sale?
One partner had a stroke recently and would like to sell the business.

The other partner is starting another business venture.

Why is this a good business?
They have built a good foundation over the last 5 years and the business has everything needed to run successfully.
They have built a strong reputation and brand visibility in the surrounding areas.
They have additional staff available on a contract basis for larger projects.
The machinery allows for mass production in quicker time frames than other companies that use handheld tools.
The location is great with lots of foot traffic and the access to the complex is easy.
Parking allows for 3 vehicles in front of the business but there is ample parking available for customers.

They don’t have high overheads and rent is very reasonable at R8500.00.