Fully describe the business's activities?
Buy & Sell 2nd hand office and household furniture, sourced from auctions, downsizing and/ or immigration.
How long has the business been established?
10 years
How long has the owner had the business?
Since inception
How does the business operate on a daily basis?
Buy stock - repair if necessary - advertise and sell items.
How are the clients attracted to the business?
Walk-inns: this is a very visible shop in a busy and prominent location; repeat customers and social media advertising.
What Advertising/Marketing is carried out?
FB page, FB marketplace & Watsap group
What competition exists?
Nobody else does second hand office furniture
Is the business VAT Registered?
Yes
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
Past 3 years
What percentage of the business is cash/credit?
All cash
What is the age analysis of the debtors book?
No debtors book
How could the profitability of the business be improved?
Additional stock purchases throughout the year, therefore sell more using existing resources.
What is the total staff complement?
8
Give a breakdown of staff/ functions/ length of service?
1 Supervisor, 3 sales people, 4 labourers
Are they on contract?
Yes
Do any have management potential?
Yes 1 of the staff members
How involved is the Owner in running the business?
Day2Day operations
When does the current lease end?
Sep 2024
Is there an option of renewal & what period?
Yes
What is the annual escalation %?
8%
What are the trading hours?
Monday to Friday 8h30am to 4h30pm; Saturday 8h00 to 13h00
What is the square meters of the business?
approximately 800sqm, with option of another 450 that landlord has offered
Is a copy of the lease available?
Yes
Do you require a licence?
Yes, a 2nd hand trader license
What lease deposit and/or other surety is required?
R30 000 bank deposit
What are the main assets of the business?
racking, shelving, small tools & equipment, desks, computers
Are any items not included in the sale?
vehicles and a portion of the racking
What is their overall condition?
good
Do any require repairing?
no
How have they been valued ?
fair 2nd hand value
Are they presently insured?
Yes
Strengths?
High demand for 2nd hand goods, especially office furniture. Nobody else offering any real competition.
Opportunities?
Increase stock holding
What is the reason for the sale?
Relocating and semi-retiring as well as ailing health of owner
Why is this a good business?
This is an excellent business as it has a small staff complement, is easy to run, is simple and straightforward: buy and sell. The location is ideal. The landlord is conducive. And there is a lot of scope for expansion!