"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Well established pawn shop offering both 2nd hand sales and pawning.
Ideally located to service its target market.
How long has the business been established?
We took the business over from my father (who operated it for around 6 years) in September 2022. Prior to that the shop has operated as a secondhand shop for more than 30 years.
How long has the owner had the business?
This business has been operational for more than 30 years. Our family has operated the business for over 10 years.
How does the business operate on a daily basis?
The business trades in second hand goods.
Buying, selling and pawning of household goods, appliances, jewellery and electronics.
How are the clients attracted to the business?
The business is located on a busy street in Pretoria CBD. Internet marketing.
What Advertising/Marketing is carried out?
Internet , mostly Facebook and TikTok. Flyers and business cards.
Does the business have any contract work?
A contract of collection for Pawns only.
What competition exists?
Due to the demand in that area there are a number of other pawn shops nearby.
What are the seasonal trends?
The business tends to trade better in summer months.
Is the business VAT Registered?
no
What VAT documentation is on file?
none
Are there up-to-date Management Accounts available?
Yes, management accounts are available.
What Balance Sheet and Income Statements are available?
Can be produced
What percentage of the business is cash/credit?
100% Cash, laybys are kept in store until fully paid
What is the age analysis of the debtors book?
No debtors Book
How could the profitability of the business be improved?
Pawn of vehicles
Intense gold buying
Operating on Sundays
Extend hours
Is Seller finance available and for what amount?
The seller is open to a structured deal.
What is the total staff complement?
There are 5 staff members.
Give a breakdown of staff/ functions/ length of service?
Manager/buyer
Stock controller
3 Sales staff
Do any receive special perks or incentives?
All staff receive targets and commissions
Are they on contract?
All permanent staff have contract
Do any have management potential?
David is currently manager runs the business hoof to plume.
Cheryl has 12 years' experience
Clive has 15+ years' experience and is a very strong buyer with further potential
How involved is the Owner in running the business?
The owner has 2 other pawn shops so his time spent in this store is limited.
Physically 1 day per week, continued WhatsApp communication where necessary
When does the current lease end?
30 October 2027
Is there an option of renewal & what period?
yes
What is the annual escalation %?
8%
What are the trading hours?
9am to 18h30 weekdays
9am to 17h00 Saturday and public holidays
What is the square meters of the business?
app 220m2 / double volume cieling
Is a copy of the lease available?
yes
Do you require a licence?
Yes, second hand goods license. We can assist with the application.
What lease deposit and/or other surety is required?
2 months rental
What are the main assets of the business?
Stock
Shop fittings
POS computer system
Are any items not included in the sale?
Lock stock and barrell required for the daily operation included
What is their overall condition?
Good
Do any require repairing?
No
How have they been valued ?
no
Which assets are on lease/HP and with whom?
None
What are their settlement amounts?
N/A
Will Seller settle or Buyer to take over?
N/A
Are copies of agreements available?
Yes
Are they presently insured?
All items are comprehensively insured.
Strengths?
Fast Cash Solutions: Offers immediate financial relief through short-term loans secured by personal items.
Diverse Inventory: Likely includes electronics, jewelry, tools, and collectibles, attracting a wide customer base.
Local Brand Recognition: If established in the community, it may benefit from repeat customers and word-of-mouth referrals.
Flexible Loan Terms: May provide more lenient terms than traditional lenders, appealing to customers with limited credit options.
Weaknesses?
Limited Marketing Reach: Smaller shops often lack the budget for broad advertising or digital marketing.
Opportunities?
Digital Expansion: Launching an online platform for selling inventory or managing loans could broaden reach.
Partnerships with Local Businesses: Collaborations can increase visibility and customer traffic.
Financial Literacy Programs: Hosting community events or workshops could improve public perception and build trust.
Eco-Conscious Resale Market: Growing interest in second-hand goods supports sustainable shopping trends.
Threats?
Online Marketplaces: Competitors like eBay or Facebook Marketplace offer alternative ways to buy/sell used goods.
What is the reason for the sale?
Owner wants to pursue other business interests.
Why is this a good business?
Local Trust: Established shops like this have loyal customers and strong word-of-mouth reputation.
Essential Service: Provides financial solutions to underserved populations who may not qualify for bank loans.
Digital Expansion: Opportunity to grow through online sales, digital loan management, and e-commerce platforms.
Diversification: Can expand into gold buying, electronics resale, or even payday lending
Annual Turnover Amount between R 500 thousand and R 6 million
