How does the business operate on a daily basis?
Quote requests are received via email, WhatsApp, telephone, prepared internally and sent out.
Orders are received via email, are captured on the system, items are manufactured/ drawn from stock, packaged and dispatched to customer.
Production & Operations Director visit dealerships to obtain any new mat templates that are required as and when new vehicle models are launched.
Production & Operations Director work on design and development of new products.

How are the clients attracted to the business?
This business is an e-commerce business with a Page 1 Google listing; therefore, customers are able to find it easily when searching for vehicle accessories. Products are also distributed on Takealot, Makro and soon to be on Amazon South Africa.
Motor dealerships order directly on behalf of customers if they are unable to supply them with OEM (Original Equipment Manufacturer) mats.
Existing customers refer friends/ family/ colleagues and return for new mats when they buy different vehicles

What Advertising/Marketing is carried out?
Advertising is done on Google Ads, Instagram, Facebook, relevant print and digital magazines as well as on Takealot

Does the business have any contract work?
One contract with a well-known car manufacturer to supply Gap Covers for a popular vehicle model

What competition exists?
There are several other suppliers of customised rubber mats, but they are quite different. We are the only suppliers of the Gap Caps and Original Boot Box for a popular vehicle model, and Ultimate Boot Box for any vehicle.

What are the seasonal trends?
The business is not affected by seasonal trends, although sales drop slightly during Christmas and Easter holidays when people are on leave and not shopping as much.

How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid-19 boosted the business, as most people moved to online shopping. The business soared during Covid and has consistently grown since the pandemic.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Copies of VAT returns available

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

What Balance Sheet and Income Statements are available?
Up to date monthly management accounts prepared by external accountants

What percentage of the business is cash/credit?
Primarily cash online. Only one account in place.

What is the age analysis of the debtors book?
All online sales are paid upfront. Only debtor account is 30 days

How could the profitability of the business be improved?
There is definitely room for improvement in several avenues: new product development, increase export sales, contracts with OEMs (Original Equipment Manufacturer), contracts with other distributors, employing a national sales representative.

Is Seller finance available and for what amount?
No

What is the total staff complement?
5 permanent staff including directors.
4 casual staff

Give a breakdown of staff/ functions/ length of service?
Finance and Marketing Director - 6.5 years
Production and Operations Director - 6.5 years
Administrative Controller - 3 years
Factory Domestic - 1.5 years
Factory Controller - 2.5 years
Production Assistant - 4.5 years
Three Factory Workers - 4.5 years, 3.5 years and 2.5 years

Do any receive special perks or incentives?
All receive a discretionary 13th cheque in December. Some staff receive sales commission.

Are they on contract?
Yes

Do any have management potential?
Yes

How involved is the Owner in running the business?
Production & Operations Director is involved in new product development and some day-to-day operations; however, the Factory Controller is able to handle these when Production and Operations Director is away.
Finance and Marketing Director handles/ oversees the marketing through outsourced agencies, deals with accountants and makes all payments at month end. Both Directors drive the brand forward as well as attend weekly team meetings when we are here.

When does the current lease end?
End February 2025

Is there an option of renewal & what period?
Yes, premises have been rented since March 2022 and there is an option to renew annually

What is the annual escalation %?
7%

What are the trading hours?
Staff are on duty from 07:00 until 16:00 Monday to Friday. However, trading hours are 24/7 as we are an online business

What is the square meters of the business?
The premises are 414sqm in total, this includes an 84sqm office comprising of three separate offices.

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
R20,700.00 tenant deposit and R11,000.00 electricity deposit

What are the main assets of the business?
Brand name and reputation for superior product and customer service delivery.
Customer database built up over 7 years.
E-commerce website
CNC Machine
Digitizing Table
Laptops, printers etc.
Factory and office furniture
Staff members – dream team who run the business on a day-to-day basis and are passionate about the business
ISO9001 Accreditation

Are any items not included in the sale?
No

What is their overall condition?
Excellent

Do any require repairing?
No

How have they been valued ?
No

Are they presently insured?
Yes

Strengths?
This business has grown into a reputable brand that can be relied upon for superior quality products and excellent customer service. There are over 1000 unique products and customised accessories for over 30 different vehicle makes. Most of the products are unique and are sought after by customers. The business is cash-based, with no debtors. There are reliable supplier relationships in place. The staff are a dedicated and reliable. Owners are able to work remotely, therefore allowing flexibility. Very high gross margins. ISO9001 Accredited.

Weaknesses?
Lack of skills and time to develop the export market, secure contracts with OEMs and other distributors.

Opportunities?
Focus on growing the Export market on a large scale. Current exports are for single orders to Australia, New Zealand, Philippines, Thailand, Chile, USA, Namibia, Congo, Kenya, Zimbabwe, Zambia, Dubai etc, which demonstrates a definite demand for the products.
Secure contracts with Vehicle Manufacturers.
Grow the Dealership market and sales.
Continue to regularly add new unique and relevant vehicle accessories to the range.

Threats?
Other customized mat manufacturing suppliers copying the exact style of mats.
Material suppliers not able to honour orders.

What is the reason for the sale?
Retirement

Why is this a good business?
This business has developed a loyal customer following and many customers return for new products over and over again. They also refer the products to friends and family. Innovation is key to the business, continually looking for new products to launch. This business has grown its income consistently year on year and there is nothing threatening the continuation of this growth and the potential exponential growth in the market, especially exports. Gross margins are high. The business is cashflow positive. It is also a fairly simple business that is easy to manage.