"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Supply beauty and wellness products to the wellness, health and beauty industry.
Products include the manufacture of aromatherapy-based heatable wheat products, hand-made wellness products as well as a range of local and imported equipment, salon and nail products.
Supply wholesale to Salons, Spas, Pharmacies, Health Shops, Gift Shops, Physiotherapists, Aestheticians, Beauty Therapists, Cosmetologists and Nail Technicians.
Products are used by clients to perform their treatments as well as to retail to their clients.
Sales are also done via Agents and Distributors based in various centres in South Africa.
Retail sales are done via Takealot, Online store and various retail stockists.
Main focus is national, although have successfully exported to United Arab Emirates, Qatar, Kenya, Botswana, Zambia and Zambia. Required Import/Export permit and documentation in place to fulfil these orders.
How long has the business been established?
Since 2007 and 2010 respectively
How long has the owner had the business?
The original aromatherapy business was bought in 2009.
In 2012 the owners sought to expand and acquired two complementary businesses thereby increasing both market share and product offerings.
One of these businesses operates under a separate name although there are plans to integrate it.
What steps are in place to solve 'load shedding' problems?
Minimal impact
How does the business operate on a daily basis?
Wholesale orders are received by email, telephone or WhatsApp.
Retail orders are received via email from online store and Takealot.
Staff makes up the orders, books the courier and despatches to the customers nation-wide.
Staff are responsible to make products for stock, conduct stock counts, and maintain the work area.
The process is efficiently run on a Just in Time basis where minimal stock is held.
A key function of the owners is to ensure adequate supplies of products for re-sale, raw materials, and packaging materials.
Procurement is important to avoid any production or processing delays.
The owners are responsible for marketing and sales, customer relationship management, daily admin, processing of invoices, and overseeing of the operations.
How are the clients attracted to the business?
Most clients approach the business having experienced products at a salon or spa and are looking to add them to their beauty treatments or product range.
Product training courses are offered either live or online.
Open Days are also scheduled at beauty training institutes in Durban and Pietermaritzburg to obtain new customers.
Receive direct contacts via social media and WhatsApp platforms.
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 WhatsApp, Facebook and Instagram, posting on social media platforms is done regularly.
Distribution of a digital newsletter twice a month promoting products with special offers.
Full database is close to 3000 contacts.
Hosting of open days/training events once or twice a year.
What competition exists?
Market is mainly wholesale for use in the beauty business industry. The employment of high quality processes ensures that products are durable and well suited to vigorous and professional usage.
There are a number of similar products on the market but they are mainly aimed at the retail sector for home use only. These are usually found at flea markets.
What are the seasonal trends?
Consistent throughout the year.
The manufacturing concern peaks in July, Augusts and December.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was closed for 8 months during lockdown of the beauty sector which was the last sector allowed to re-open.
Many customersâ businesses closed down. Recovered business by successfully building up the client base again.
The business suffered financial losses and has an assessed tax loss that can be utilised.
Is the business VAT Registered?
In the process of de-registering
What VAT documentation is on file?
Online on Sage Accounting system
Are there up-to-date Management Accounts available?
Yes, Management Accounts are available up to end Feb 2025
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 R2,613
30 days R10,400
Current R34,000
(as at 26th February 2025)
How could the profitability of the business be improved?
Integrate both businesses into one thereby introducing cost efficiencies on two sets of books, accounting fees, Sage and Internet licences, bank charges and general office overheads
Optimise staff utilisation
Operate with one manager for both businesses
Make one online shop customised to service both wholesale and retail customers, and integrate total product offering
Increase the sales:
⢠Appoint an agent in the Western Cape
⢠Re-engage with the interested Distributor in United Arab Emirates
⢠Offer additional product brands to sell to existing/new customers
Is Seller finance available and for what amount?
No
What is the total staff complement?
4
Give a breakdown of staff/ functions/ length of service?
Manager/Owners â joined Nov 2011/May 2012
Functions:
Marketing, Sales, Procurement, Financials, Operations, Human Resources, Administration, Customer and Supplier Management
Production Assistant 1 â joined Aug 2019 (works 2 days a week)
Production Assistant 2 â joined May 2024 full time, prior to this worked on a casual basis from Aug 2023
Same Functions for both:
Process orders
Package and label products
Despatch orders
Answer the phone if manager is not available
Assist any customers collecting their orders
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
Any special arrangements for the staff related to the Covid-19 pandemic?
On full pay through TERS
When does the current lease end?
Operating from Ownerâs homes
What are the trading hours?
Monday - Friday 08:00 - 16:30
This can be amended as there are no walk-in clients
What is the square meters of the business?
Reception Office 20sqm plus bathroom
Factory Area +- 60sqm
Office Area +- 25sqm
Storage Unit 22sqm (under utilised)
Second Office and Storage 25sqm (could be combined with factory and reception office)
Do you require a licence?
No
What are the main assets of the business?
Sewing machines, work tables, steel shelving, display cabinets, office furniture and computers.
Stock and raw materials.
Websites (these can be exported for the new owner).
Domain names (these will be transferred to the new owner)
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 â good
Factory - shelving, tables and chairs, sewing machines â usable
Storage - shelving, fold up table, chairs â 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
Is a full asset list on file?
Yes
Strengths?
Strong brand awareness
Discounted reseller pricing from main supplier
Quality known brand
Long standing supply agreement with main Johannesburg Supplier
Long standing KwaZulu-Natal Distributor for national salon brand
Excellent customer relationships
Long standing Distributor in Gqeberha
Many top spas as long-standing customers
Top quality luxury products
Products are customisable for corporate branding
Successfully exported to the following countries: Kenya, Qatar, UAE, Namibia, Botswana and Zambia
Good repeat business
Outstanding customer service
Excellent reputation
Weaknesses?
Business needs more focussed sales
Needs an agent/rep in the Western Cape
Opportunities?
Integrate both businesses together to get greater cost savings and utilise staffing more optimally
Operate with one manager for both businesses
Grow export market
Expand into Hotel, Game Lodge and Spa Groups
Launch additional products into the loyal customer base
Partner with Spa Consultant companies to promote products
Sell to Pharmacy Groups
More online focus eg. Takealot, Amazon, own websites and customer retail online stores
Open a walk-in shop to capture retail sales at a higher margin and increase visibility/convenience to wholesale beauty industry
Approach Beauty Schools to use the products in their training and introduce brands to the students
Targeted sales to spa and pharmacy groups
In-source sewing
Exhibit at beauty trade fairs nationally and internationally
Threats?
Inferior products
What is the reason for the sale?
Owners wants to retire
Why is this a good business?
These business have been a joy for the owners for 15 years.
The businesses can be operated remotely online or from a shop/office.
Provides ample variety and scope for the entrepreneur who enjoys being active and mentally stimulated.
Annual Turnover Amount between R 500 thousand and R 6 million
