"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The business was established in 2004 from humble beginnings.
Selling charcoal and braai wood to friends and family, their business grew to a full fletched business providing consumer goods to numerous large retail stores.
Their footprint extends to all retail outlets, from butcheries, liquor stores, spaza shops, filling stations, hardware shops, convenience stores and holiday resorts. They also sell to individuals and all customers are welcome.
It is 18-years later, and they are still in business selling quality products at reasonable prices.
How long has the business been established?
2004
How long has the owner had the business?
Since inception
How does the business operate on a daily basis?
Supplying charcoal, briquettes and various wood types to retailers.
Orders are received and goods are then dispatched.
Currently the business operates on a COD basis only.
They sell 3-different brands of briquettes and charcoal.
Their briquettes and charcoal are made from Namibian hard wood.
How are the clients attracted to the business?
- Large client base and well known in the area.
- Website
- Word of mouth
What competition exists?
There are various other suppliers, however this business offers a premium product.
Barriers to entry aren't easy as there is a limited supply of charcoal and wood.
What are the seasonal trends?
Trades well throughout the year due to the varying wood types on offer.
Is the business VAT Registered?
Not vat registered
What Balance Sheet and Income Statements are available?
Yes.
What percentage of the business is cash/credit?
All payments are COD except for 2 clients who pay 30 days.
How could the profitability of the business be improved?
- Greater owner involvement
- Offering credit
- Aggressive marketing campaign
- Better social media presence
Is Seller finance available and for what amount?
No.
What is the total staff complement?
3 staff
Give a breakdown of staff/ functions/ length of service?
1 Manager
2 Packers
How involved is the Owner in running the business?
Partially involved.
When does the current lease end?
The business currently operates from the seller's home.
What are the main assets of the business?
Full asset list will be made available.
Are any items not included in the sale?
Option to buy the deivery vehicle and trailer.
What is their overall condition?
Good working condition
Do any require repairing?
No.
How have they been valued ?
Second hand value.
Are they presently insured?
All assets are comprehensively insured.
Strengths?
- Premium product at great pricing.
- Strong market share in surrounding areas.
- Business for all seasons (good winter and summer trade).
- Asset strong.
Weaknesses?
- Needs more owner involvement
- Greater marketing spend.
- Greater social media presence.
Opportunities?
- Supply larger retail outlets
- Supply outside of current area.
Threats?
None perceived.
What is the reason for the sale?
Owner wants to concentrate on his core business.
Why is this a good business?
Well established brand in the market with existing route to market.
More owner involvement and greater marketing will see this business reach new heights.
Annual Turnover Amount between R 500 thousand and R 6 million
