| History Background |
| How long has this business been around ?? | For the past 14 years this business has been operating very successfully in Kwa Zulu Natal. During 2004 their 3 branches turned over just under R10 million. | |
| How will your business achieve further growth ?? | Due to the success of existing branches the owner has decided to sell off agencies based on the same tried and tested principles. Each Agency would be made up of two seperate sections, Retail & Installation. | |
| Present Market |
| What will the retail section consist of ?? | The retail section is the simplist and least expensive to set up and organise. There will be a showroom and office of +/- 100m2. A selection of the most popular models that the owner manufactures in different colours will be displayed here, as well as samples of worktop colours, handle selections etc. A 3D graphics design program will be loaded onto the office computer enabling the salesperson to show clients the various designs on offer. | |
| How will the Installation Section be operated ?? | Experience has shown us that the best method of setting up the Fitting side of the business is to Sub-contract it to someone who is known for his workmanship and reliability. However, it is basically a DIY system that is incredibly user friendly and a number of clients will do the fitting themselves, but majority of clients will require it to be fitted for them. | |
| Costs & Installation procedures? | Clients are charged a set fee for the installation of the units, which is separate from the purchase cost and this is then paid directly to the Sub-contractor on completion of the job and settlement by the client of the full amount due. This system seems to work very well because the more work the sub-contractor installs the more he gets paid and this incentive allows him to work overtime where necessary. | |
| What will the sub-contractors full responsibility be ?? | The sub-contractor is responsible for employing his own labour, supplying and maintaining his own tools, must provide his own transport and it is his responsibility to deliver the jobs he is going to install. From our side we supply him with everything that he needs to install the job including things like acrylic fillers, panel pins, glue etc. | |
| Staffing |
| What is the total staff complement? | The Retail section will have a receptionist / bookkeeper and a salesperson. The Installation side is sub-contracted out to a reliable party. | |
| Premises |
| What Premises are required ?? | Premises will consist of a showroom and office of +/- 100m2 | |
| S.W.O.T. Analysis |
| Brief overview and strengths? | 1) The Agency will be a separate entity to other branches.
2) The Agency will have the rights to operate & function in a specifically designated area.
3) The right to market /advertise with the use of all logo's, letterheads, advertising literature etc.
4) A computer pre-loaded with the kitchen design program to show clients completed units.
5) Full training of the principle or nominee in the use of the above as well as instruction in the basics of the system.
6) Full training of a nominated Fitting foreman in the installation of units. | |
| Overview & Strengths continued :? | 7) All additional training to be carried out at H/O in PMB at no charge. If training is to be done at the agents site then the cost of transport and accommodation of the instructor is to be borne by the purchaser.
8) Full documentation, including instruction manuals.
9) Access to and feedback from Company home page and any enquiries derived for the area. | |
| Reason For Sale |
| What is the reason for the sale? | The owner requires Agencies to be setup in Richards Bay and the Lower South Coast of KZN. | |
| Conclusion |
| Why is this a good business? | This business has been trading very successfully for the past 14 years and offers an agency owner the opportunity of becoming part of a well know and respected going concern. Very well priced at R114 000 with minimal monthly overheads. | |
| What Agreements will be in place ?? | There will be a 5 year Supply Agreement, renewable on a yearly basis after initial 5 years has expired. There will also be an Agency Agreement which is subject to the Distributor entering into the Supply Agreement with the Supplier and abiding by all the terms and conditions contained therein | |