How does the business operate on a daily basis?
Routine - Open shop - admin duties
Check stock - order stock
Customer service - offer suggestions and advice

How are the clients attracted to the business?
Client orientated - customer service, eye catching displays
Promotions - raffles

What Advertising/Marketing is carried out?
WhatsApp group
Website
Centre does advertising

What competition exists?
Another store in same area stocks a little wool and another store in different location stocks wool and accessories.

What are the seasonal trends?
Winter - Wool sales
Summer - Cotton sales with Wool

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Latest statement

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

What Balance Sheet and Income Statements are available?
AFS end Feb 2025

What percentage of the business is cash/credit?
Cash and Card only.

How could the profitability of the business be improved?
Diversify revenue streams
Expend online sales
Enhance customer relations - Catchy cards

What is the total staff complement?
One

Give a breakdown of staff/ functions/ length of service?
One staff member been with previous owner still with business

Do any receive special perks or incentives?
A small Old Mutual policy is paid for the staff member +- R114 per month.

Do any have management potential?
No

How involved is the Owner in running the business?
One Director runs the day to day and the other Director only does finances (remotely)

Do they have signed contracts?
Yes

When does the current lease end?
April 2027

Is there an option of renewal & what period?
Yes - Three years.

What is the annual escalation %?
+- 7%

What are the trading hours?
09:00 to 16:00 - can extend.

What is the square meters of the business?
Shop - 108sqm
Store Room - 9sqm

Is a copy of the lease available?
Yes.

Do you require a licence?
No - There is a Trade Mark.

What lease deposit and/or other surety is required?
Deposit - Two Months.
Personal surety.

What are the main assets of the business?
Shelving
Display units
Cash register
Dinning table with 10 chairs

Are any items not included in the sale?
no

What is their overall condition?
Second Hand - Maintained.

Do any require repairing?
No

How have they been valued ?
Second hand value

Are they presently insured?
Yes

Strengths?
High gross profit margins
Local reputation
Niche expertise

Weaknesses?
Seasonal fluctuations
Limited to no online presence

Opportunities?
Workshops and events
E-Commerce expansion

Threats?
Rising rental costs
Online competition

What is the reason for the sale?
Director has relocated from the area.

Why is this a good business?
Strong margins with low spoilage.
Niche appeal with loyal customers.