| History Background |
| Fully describe the business's activities? | The business will consist of a licensee who will set up a distribution operation in a pre-defined area and supply the product directly from the manufacturer to retail outlets. Ideally he will appoint agents to promote and sell the product. | |
| How long has the business been established? | It is a new business, but extensive research of the product has been undertaken for many years. | |
| How long has the owner had the business? | The owner has been involved with the development of the product from the beginning. | |
| Present Market |
| How does the business operate on a daily basis? | Agents will promote and sell the uniquely formulated vitamin enriched water to a wide variety of customers. National clients will be serviced by the manufacturer. The product is Functional Water, a proudly South African Product and designed in an international recognized laboratory. | |
| How are the clients attracted to the business? | A national chain of agencies will create an awareness. Each licensee will promote the product in his area in innovative ways e.g. school sport days, local sport clubs and sport events, gyms,etc. | |
| What Advertising/Marketing is carried out? | Website - Research and Product information
Magazines - Advertising and Advertorials
Events - Family-days, Fun-walks
Newspapers - Advertising and Event co-ordination
World Wide Web - Research and Product information
Promotions - Awareness | |
| Does the business have any contract work? | No existing contracts are in place | |
| What competition exists? | The product is reasonably protected in the market as it is the only water based beverage globally containing the unique agent Resveratrol. One other similar product is available on the market. | |
| What are the seasonal trends? | There are no seasonal trends | |
| Financial |
| Is the business VAT Registered? | The agencies will be VAT Registered | |
| What VAT documentation is on file.? | No existing documents exist as this is a new operation. | |
| Are there up-to-date Management Accounts available? | Figures are based on forecast only. | |
| How could the profitability of the business be improved? | Active marketing of the products will ensure profitable returns | |
| Staffing |
| How involved is the Owner in running the business? | Full time owner/licensee involvement will ensure success. | |
| Premises |
| When does the current lease end? | The lease will be negotiated at setup. | |
| What is the square meterage of the business? | 100 - 150 sqm will be needed | |
| Assets |
| Is a full asset list on file? | Yes a full list is available on request | |
| What is their overall condition? | All equipment will be new. | |
| S.W.O.T. Analysis |
| Strengths? | Products have a unique composition and it is expected impact on the health market. | |
| Weaknesses? | There are many competitor products on the market and entry will initially be restricted. | |
| Opportunities? | The product is aimed at a rapid growing market of health conscious people. | |
| Threats? | Very competitive market. | |
| Reason For Sale |
| What is the reason for the sale? | New opportunity | |
| Conclusion |
| Why is this a good business? | This business offers an opportunity for the entrepreneur who wants to start small and grow to reach full potential. | |
| What is the price plus stock and the net profit? | The total price for the business is R275,000 and will include equipment and 10 pellets of opening stock as well as 20 counter top fridges, R25 000 for national marketing, licence fees, etc. | |