How does the business operate on a daily basis?
They service a number of corporate clients on a weekly and ad hoc basis as well as servicing private clients. This florist has a great location with high visibility on a busy road in close proximity to Sandton CBD.
The florist also fulfils orders received via their online store.

How are the clients attracted to the business?
Long standing relationships, word of mouth and google search.

What Advertising/Marketing is carried out?
Mostly social media (facebook and instgram) as well as local neighbourhood whatsapp groups.

Does the business have any contract work?
Numerous long standing corporate relationships, not necessarily anything in writing.
A lot of the corporates have very stringent supplier conditions, so once listed as an authorised official supplier on their procurement system you are guaranteed their business. This business is an official supplier of most of its corporate clients.

What competition exists?
There are other florists in the area, however these are more retail orientated, whereas this company's primary focus is on servicing corporates in and around Sandton.

What are the seasonal trends?
Valentines Day (February), Mothers Day (May), Secretaries Day and Spring Day (September) ensure good months. Otherwise florist trades well throughout the year as people always need flowers for birthdays, new babies, condolences etc.

Is the business VAT Registered?
No, the business is in the process of being vat registered as turnover demands it.

Are there up-to-date Management Accounts available?
Current management accounts are available.

What Balance Sheet and Income Statements are available?
Current.

What percentage of the business is cash/credit?
Ad hoc walk in business and online orders are paid immediately upon purchase via eft, cash or credit card. Corporate clients work mostly on 14 - 30 days from invoice and pay by eft.

What is the age analysis of the debtors book?
Nothing over 60 days.

How could the profitability of the business be improved?
The profitability of the florist could be improved through increased marketing spend and running social media campaigns. Also huge opportunity to branch into weddings and floral workshops.

Is Seller finance available and for what amount?
No.

What is the total staff complement?
2 florists/ sales assistants. One of them doubles up as a driver.

Give a breakdown of staff/ functions/ length of service?
One florist has been with the business since inception, 7 years ago.
One florist has been with the business for 2.5 years.
Both florists are highly skilled in all aspects of floristry and can work without supervision.
Both florists double as sales assistants, assisting walk in clients with flower and gift selection, ringing up sales, gift wrapping etc.
The one florist is also acts as delivery person/driver, using the company vehicle to do flower deliveries.
Both florists know the running of the business well, are very well liked by our clients and customers and essentially they are the heart of the business. It would be highly advisable to retain both staff members.

Do any receive special perks or incentives?
Yearly bonus when finances allow.

Are they on contract?
Both florsits have employment contracts in place.
They both work Mon- Fri and they alternate working Saturdays as 1 staff member is sufficient on a Saturday.

Do any have management potential?
Both staff members are capable of running the store when owner is away in terms of assisting customers, however neither are confident with computers so all admin is done by owner. This is certainly an opportunity for upskilling and empowering one/both of them.

How involved is the Owner in running the business?
The owner is involved on a daily basis but enjoys the freedom to pop in and out. The 2 staff are capable to run the business in the owner's absence.

When does the current lease end?
October 2024.

Is there an option of renewal & what period?
Another 2 year period is an option. Landlord open to negotiation for longer lease.

What is the annual escalation %?
7%

What are the trading hours?
8am to 5pm Monday to Friday and 9pm to 1pm Saturdays and selected public holidays. No trading hours are imposed by landlord, all hours are at discretion of owner.

What is the square meters of the business?
68sqm

Is a copy of the lease available?
Yes.

Do you require a licence?
No

What lease deposit and/or other surety is required?
2 months exit rental. To be negotiated with landlord on renewal of lease.

What are the main assets of the business?
General shop fitting.
The business has delivery vehicle which is not included in the assets - the buyer has an option to buy the branded delivery vehicle from the seller.

Are any items not included in the sale?
Delivery vehicle - the buyer has an option to buy the branded delivery vehicle from the seller. 2016 Fiat Fiorino 1.4. Price R100 000.

What is their overall condition?
Mostly excellent condition, some general wear and tear as can be expected.

How have they been valued ?
Second hand value.

Are they presently insured?
All assets are comprehensively insured.

Strengths?
Corporate client base
Ideal location within Sandton's CBD
Excellent relations with longstanding clients

Weaknesses?
Poor marketing, definite room for growth here.

Opportunities?
More focus spent on marketing the business and increasing the corporate client base and walk in foot trade will serve this business well.
Advertising the online store via the different social media platforms.
Huge untapped opportunity to enter wedding industry.
Offering of flower arranging workshops, there is a demand and the space of the shop allows for this.

Threats?
Economy.

What is the reason for the sale?
The seller is looking to relocate.

Why is this a good business?
The owner has made much effort to secure good corporate and private clients which will bode well for the new buyer. The florist is ideally situated in the heart of Sandton.
Staff are well trained and equipped to run the business in the seller's absence.