Video Shop
REF: 12900058
BROKER   Paul Fyfe
email 083 326 0683
South Africa Gauteng Johannesburg East Rand
Price: R 90,000 Stock: R 400,000 Total Price: R 490,000
Total Assets: R 40,000 Monthly Turnover:
R
77,944
Net Profit: R 21,127

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History Background
Fully describe the business's activities?Hiring of Videos, Series, and Playstation DVD's
How long has the business been established?Business is 30 years old and moved to a new shopping centre 10 years ago
How long has the owner had the business?The owner has had the business for the last 7 years
Present Market
How does the business operate on a daily basis?Operates with manager and contract staff 7 days a week
How are the clients attracted to the business?Walk in clients from surrounding area and centre
What Advertising/Marketing is carried out?School promotions and specials in conjunction with other centre businesses
Does the business have any contract work?They do offer DVD contracts
What competition exists?Other video stores are situated in the town
What are the seasonal trends?School holidays and Christmas are the best times
Financial
Is the business VAT Registered?Yes, business is vat registered
What VAT documentation is on file.?Yes, vat documents are available
Are there up-to-date Management Accounts available?To serious buyers
What Balance Sheet and Income Statements are available?Year ending 2009 will shortly be available
What percentage of of the business is cash/credit?100% Cash/Credit Card
How could the profitability of the business be improved?They currently offer Sweets & Cold drinks but can expand to cigarettes, biltong and popcorn
Is Seller finance available and for what amount?Possibly
Staffing
What is the total staff complement?One Manager and 2 temps
Give a breakdown of staff/functions/length of service?See above
Do any receive special perks or incentives?No perks are in place
Are they on contract?Yes, staff are on contract
How involved is the Owner in running the business?Runs the branch remotely
Premises
When does the current lease end?Lease has just been renewed
Is there an option of renewal & what period?5 year renewal
What is the annual escalation %?10% annual escalation
What are the trading hours?10.00am - 8.00pm
What is the square meterage of the business?125sm
Is a copy of the lease available?Yes, copy of the lease is available
Do you require a licence?No but must register
Assets
Is a full asset list on file?To be finalised shortly
Are any items not included in the sale?No items will be excluded
What is their overall condition?Good - recently replaced all the shelving
Do any require repairing?None require repairing
How have they been valued. ?Owners Valuation
Which assets are on lease/HP and with whom?No assets are on lease / HP
Are they presently insured?Yes, assets are insured
S.W.O.T. Analysis
Strengths?Provides not only DVD's but also series and classics. Situated in good area and shopping centre with easy access and parking
Weaknesses?None perceived
Reason For Sale
What is the reason for the sale?Owner has to many stores to manage successfully - requires funding for other branches
Conclusion
Why is this a good business?Cash business
What is the price plus stock and the net profit?R90,000 plus stock of at least R400,000. Net profit just over R21,000.
SIMILAR OPPORTUNITIES


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BROKER   Paul Fyfe
Aldes Masters
email 083 326 0683
paul@aldesmasters.co.za

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