How does the business operate on a daily basis?
A sales lady opens manages and closes the stores daily. The owner checks in via a call or teams meeting each day and provides ongoing support with store visits to discuss open issues, training, replenish marketing materials, discuss sales and plans for the year.

How are the clients attracted to the business?
The businesses are reliant on word-of-mouth based on service, pricing options and quality. In addition marketing on Facebook, and pamphlet distribution attracts clients. The walk-in trade is important too.

What Advertising/Marketing is carried out?
The use of Facebook and pamphlets

Does the business have any contract work?
No, the business does not.

What competition exists?
There are other service providers in all of the areas.

What are the seasonal trends?
February to November are generally the busier months - this is due to the fact that the unveiling ceremonies are arranged in the winter months which are typically drier.

Is the business VAT Registered?
The holding company is VAT registered but not the stores

What VAT documentation is on file?
All VAT is up to date in holding company

Are there up-to-date Management Accounts available?
No management accounts are run per store but owners track sales, cost of sales expenses daily and will provide an Excel spreadsheet to verify the financial position of each store at the appropriate time.

What Balance Sheet and Income Statements are available?
No

What percentage of the business is cash/credit?
100% - no cash is dealt with. Sales are either concluded upon full payment via EFT or Card.

What is the age analysis of the debtors book?
Nil - no aged debtors. Deposits can be made against product selected and balance paid off but goods are not released until full payment reflects in the business account.

How could the profitability of the business be improved?
Discounting of product and increasing the marketing spend.

Is Seller finance available and for what amount?
Ideally no but open to discussion based on offer.

What is the total staff complement?
Each of the 4 stores has 1 sales lady

Give a breakdown of staff/ functions/ length of service?
Varies but generally no turnover of staff.

Do any receive special perks or incentives?
The ladies are incentivised based upon sales targets- in addition the franchisor may offer incentives within the group to top agents and prize may be "weekend away".

Are they on contract?
Yes

Do any have management potential?
They are all capable to work on their own - open and close the stores, market via pamphlet distribution, sell product, manage payment terms and place orders. They are all able to communicate effectively and contribute to meetings.

How involved is the Owner in running the business?
On a daily basis - either check in remotely or via planned store visits. Management will deal with difficult matters as they arise and owners deal direct with the factory and the Franchisor to execute orders, installations and manage stock.

When does the current lease end?
This varies by store - all have a lease agreement in place and all can be renewed

Is there an option of renewal & what period?
Yes, landlords vary but all are currently open to a renewal based on healthy tenant relationships.

What is the annual escalation %?
Varies by store but all are market related

What are the trading hours?
Monday to Friday - 09h00 - 17h00
Saturday 09h00 - 14h00

What is the square meters of the business?
They vary but average around 20

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
Varies by landlord - typically 1 month rent equivalent

What are the main assets of the business?
Computer
Cell phone
TV
Camera
Desk
Chair

Are any items not included in the sale?
WiFi router

What is their overall condition?
Good

Do any require repairing?
No

How have they been valued ?
Replacement value, fair wear and tear accounted for

Which assets are on lease/HP and with whom?
Nil

Strengths?
Trade profitably form the outset
Product is guaranteed for 25 years
Market is always present
Good location for target market
Low working capital required
Low stock-holding
No cash
No start-up costs

Weaknesses?
Only 1 sales lady - no contingency when off.
Reliant on factory for stock and installations

Opportunities?
The introduction of granite stone as an option has improved sales
Undertake own deliveries and installations to avoid reliance on the factory, offer same service to competitors in the area

Threats?
Whilst unlikely the opening of a competitor store and cheaper product would impact the current status.

What is the reason for the sale?
The owners are wishing to diversify their portfolio and to purchase a business in the area in which they live.

Why is this a good business?
The market is always present
Trade profitably from day 1
No working capital required
Low stock, overheads and staff costs
Well established franchise with solid reputation