| History Background |
| Fully describe the business's activities? | This company provides all the artwork and graphic design and handles clients orders with pride and delivers on time. A company with skilled committed staff. Serving the community of schools, businesses and clubs for over 20 years helping them promote their companies with Caps, T Shirts, Stickers, Umbrellas, Backpacks, Corex Boards and much much more. Take this business to new heights with a little more owner management, sales and advertising | |
| How long has the business been established? | The business was established 20 years ago and is well known on the East Rand | |
| How long has the owner had the business? | Owner took over the business 2/12 years ago. | |
| Present Market |
| How does the business operate on a daily basis? | Receives orders. Clients supply the items and the company attends to the screen printing and embroidering. The embroidering is outsourced. | |
| How are the clients attracted to the business? | Many are existing clients which re-order on a regular basis. This includes schools, businesses and sports clubs in the area. | |
| What Advertising/Marketing is carried out? | No marketing is currently undertaken | |
| Does the business have any contract work? | The business has a large base of regular customers. | |
| What competition exists? | They are well known for a quality product and therfore do not experience much competition. | |
| What are the seasonal trends? | The only quite time is January of each year. | |
| Financial |
| Is the business VAT Registered? | Yes, business is vat registered | |
| What VAT documentation is on file.? | Yes, vat documents are on file | |
| Are there up-to-date Management Accounts available? | Up to date accounts are available | |
| What Balance Sheet and Income Statements are available? | Balance Sheet is available to December 2008. | |
| What percentage of of the business is cash/credit? | 99% Cash on delivery. | |
| How could the profitability of the business be improved? | More owner marketing, advertising and sales consultant to promote the business | |
| Is Seller finance available and for what amount? | No seller finance is available | |
| Staffing |
| What is the total staff complement? | Ther are 4 printers in the company, 1 Curer and a graphic artist. | |
| Give a breakdown of staff/functions/length of service? | Most of the staff have been with the company for 15 years or more and are well trained. | |
| Do any receive special perks or incentives? | Annual performance bonus. | |
| Are they on contract? | No staff contracts are in place | |
| Do any have management potential? | No management potential with current staff members | |
| How involved is the Owner in running the business? | Owner is stretched between two businesses hence the need to sell. | |
| Premises |
| When does the current lease end? | May 2010 | |
| Is there an option of renewal & what period? | Yes, option is available | |
| What is the annual escalation %? | 10% annual escalation | |
| What are the trading hours? | 8.00am - 5 pm Monday to Friday. | |
| What is the square meterage of the business? | Approximately 400 sm under roof | |
| Is a copy of the lease available? | Yes, copy of the lease is available | |
| Do you require a licence? | No licence is required | |
| Assets |
| Is a full asset list on file? | Full asset list is available | |
| Are any items not included in the sale? | No items will be excluded from the sale | |
| What is their overall condition? | Assets are all in good condition | |
| Do any require repairing? | None of them require repairing | |
| How have they been valued. ? | Owners valuation. | |
| Which assets are on lease/HP and with whom? | None of the assets are on lease / HP | |
| S.W.O.T. Analysis |
| Strengths? | Existing customer base, 21 year old business, Name, skilled staff | |
| Weaknesses? | None perceived | |
| Opportunities? | More selling, advertising and 2010. They have just secured some work for 2010. | |
| Reason For Sale |
| What is the reason for the sale? | Owner cannot manage and serve two businesses. | |
| Conclusion |
| Why is this a good business? | Cash business | |
| What is the price plus stock and the net profit? | Priced at R830 000 including R30 000 stock, monthly net profit is on average R29 633. | |