How does the business operate on a daily basis?
Orders come in by email, telephone or WhatsApp. Retail orders via email from the online store. Staff make up the orders, book the courier and despatch to the customers nation-wide. Staff make products for stock, conduct stock counts, and maintain the work area. A key function of the owner is ensuring adequate supplies of raw materials, packaging materials and to procure the necessary materials in a timely manner to avoid any production delays. The owner also does marketing and sales, follows up on sales, daily banking, processes invoices, and overseas the operations.

How are the clients attracted to the business?
Most clients approach the business having experienced the products at a salon or spa and are looking to add them to their beauty treatments. Direct contacts are also received via the businesses social media.

What Advertising/Marketing is carried out?
Sales agent in Johannesburg and one in Durban, and a Distributor in Gqeberha.
Currently looking for an agent in Cape Town and liaising with a possible agent in Botswana.
Advertising is done on Facebook and Instagram, posting on social media platforms is done regularly.
Distribution of an electronic newsletter to some 500 email contacts twice a month promoting products with special offers.
Host training events once or twice a year.

What competition exists?
There are a number of cheaper wheat bags available at various outlets, often flea-markets, however they do not have the quality process that this business employs and are mostly focused on individual use, whereas this businesses focus is on the beauty industry and products are for salon use and must therefore be more robust and of a higher quality.

What are the seasonal trends?
Fairly consistent throughout the year. Quieter in January/February and busy in July/August.

Is the business VAT Registered?
In the process of de-registering

What VAT documentation is on file?
Online on Sage Accounting system

What Balance Sheet and Income Statements are available?
2024 Annual Financial Statements available (Mar 2023- Feb 2024)

What percentage of the business is cash/credit?
80% payment upfront
20% on 30 day credit terms

What is the age analysis of the debtors book?
60 days R910
30 days R8184
Current R42,000
(as at 30 Nov 2024)

How could the profitability of the business be improved?
Increase the sales by appointing an agent in the Western Cape. Building a client base outside South Africa in United Arab Emirates, Qatar or Mauritius would be beneficial with the currency exchange rate being favourable for exports. Having sewing done in-house may be more cost-effective than outsourcing this function.

Is Seller finance available and for what amount?
No

What is the total staff complement?
3

Give a breakdown of staff/ functions/ length of service?
Manager/Owner – joined Nov 2011
Functions:
Handles orders from customers, processes invoices, procurement, sales, and oversees production.
Handles all procurement, and logistics with outsource partner.
Customer management.
Makes aromatherapy products.
Social media marketing and electronic newsletters.
Financial management and liaises with Accountant.
HR management

Production Assistant 1 – joined Aug 2019 (works 2 days a week)
Production Assistant 2 – joined May 2024 full time, prior to this worked on a casual basis from Aug 2023
Current working hours 8am to 4.30pm
Same Functions for both:
Make up products.
Package and label products.
Print bar codes for each product.
Dispatch orders according to the Delivery Notes.
Book the courier online and notify customer by email.
Answer the phone if manager not available and take messages.
Assist any customers collecting their orders.
Write out receipts for cash orders.
Assist the couriers when they deliver and note goods in the Goods Received Book.
Advise Manager when stock is running low.
Make some aromatherapy products according to the recipes (under supervision).
Conduct weekly stock counts.
Clean the office and factory area.

Do any receive special perks or incentives?
No

How involved is the Owner in running the business?
Fully involved

Do they have signed employment contracts?
Yes

When does the current lease end?
Operating from Owner’s house

What are the trading hours?
Business is conducted online and via email with no walk-in customers, so trading hours are flexible.

What is the square meters of the business?
Reception Office 20sqm plus bathroom
Factory area +- 50sqm
Storage unit 22sqm (under utilised)

Do you require a licence?
No

What are the main assets of the business?
4 x Swivel Office Chairs (1 Black, 2 Green/Black, 1 Green)
3 x Office Desks 1200mm (Dark Wood)
2 x Wooden Chairs with Leather Seats
Large Dark Wooden Work Table (Damaged Legs)
Credenza (Hanging files)
Tall Wooden Oak Book Shelf
Small Wooden Veneer Top and Steel Legs Table
Small Light Wooden Veneer Desk (No Drawers)
White Wooden Ladder Shelf
Small Dark Wood Table with Small Drawer
Kiaat Wooden 2m Table
Defy Bar Fridge
Steel Industrial Shelving (2 units)
6 x White Steel Chairs
4 x White Fold Up Chairs
Cardboard Stand Mock Up Point of Sale Shelving Unit
Desktop PC - Extra Spec with Monitor and Keyboard
Desktop PC - with SSD, Monitor and Keyboard
Desktop PC - with SSD, Monitor and Keyboard
Netgear Router
HP Deskjet 3630 Printer (White)
10 x Shelving Units
Steel Desk Guillotine
Heat Seal & Shrink Wrap Machine
Knitting Machine
Janome Sewing Machines
Singer Sewing Machine (No Cabinet)
E&R Sewing Machine
Brother Sewing Machine
Steel Paper Towel Dispenser
Steel Trolley
Heavy Bench Scale
Electronic Scale
Glass Measuring Pipette
2 x Branded Wall Posters
Branded 3m Table Cloth
White Board Planner (Small)
White Board Magnetic (Large)
Microwave, Kettle, Toaster
3 x Plastic Rubbish Bins
Mugs, Plates, Cutlery, Steel Basins, Measuring Jugs
59 x Plastic Storage Bins, Baths, Buckets
5 x Small Wooden Storage Crates

Are any items not included in the sale?
Yes, these will be pointed out to buyer and a list provided

What is their overall condition?
Office furniture, display cabinet and bookshelves – good
Factory - shelving, tables and chairs, sewing machines – fair
Storage - shelving, fold up table, chairs – good

Do any require repairing?
1 x Work table legs damaged
1 x typist chair hydraulic not working

How have they been valued ?
Second hand value

Which assets are on lease/HP and with whom?
None

Are they presently insured?
No

Strengths?
Quality brand
Excellent customer relationships with long-standing customers
Top quality luxury products
Products are customisable for customer branding
Successfully exported to the following countries: Kenya, Qatar, UAE, Namibia, Botswana and Zambia

Weaknesses?
Business needs more focussed sales
Needs an agent / rep in the Western Cape

Opportunities?
Grow export market
Expand into hotel, game lodge and spa groups
Launch additional products into the customer base
Spa Consultant companies
Pharmacy Groups
More online focus eg. Takealot, Amazon

Threats?
Inferior products

What is the reason for the sale?
Owner wants to retire

Why is this a good business?
This business has been a joy for the owner for 15 years. It provides an opportunity for creativity in making products and developing new ones. Clients love the products which is rewarding. It can easily be managed by one person along with the current staff.
It would be great for someone who wants the independence of their own business, and the flexibility of their own work hours. Ideal for a Mom not able to commit to a full-time job, a newly retired person, or a young person wanting a versatile work environment and to be their own boss.