Curios And Party Accessories Business For Sale

Business description

History Background
Fully describe the business's activities?
The business operates as a party shop specialising in Balloons for all occassions. They are trading from a well known entertainment centre in the North of Johannesburg.
How long has the business been established?
The business started trading ±3 years ago from the current venue. The retail shop was however only opened in February 2009. Prior to that they had the Landlord's consent to sell their products in the passages of the entertainment centre.
Present Market
How does the business operate on a daily basis?
Retail store that sells all kinds of party products such as balloons; costumes etc. They do non permanent tattoos from the shop. They also have casuals walking up and down the passages selling balloons. Very popular especially at the exits of the entertainment centre. They are associated with the following to arrange functions on or of site: Jumping castle hire; chef/baker; photographer; website builder and a dressmaker who can do a new costume in 24 hours.
How are the clients attracted to the business?
No marketing and advertising is done. Sales are generated by selling to visitors to the venue.
What are the seasonal trends?
Slow day and week trade. Weekends and public and school holidays are busy.
Financial
Is the business VAT Registered?
Business forms part of a bigger group that is VAT registered.
Are there up-to-date Management Accounts available?
We have management accounts for the period Feb. 09 to Dec. 09.
What percentage of of the business is cash/credit?
95% Cash
How could the profitability of the business be improved?
Advertising in school newspapers to promote their party product line. Schools could benefit on a % of sales. Active website. Promote "can-a-gift" to corporates to do logos, survival kits, welcome packs etc. The same concept could be taken to other similar entertainment centres in Gauteng.
Staffing
What is the total staff complement?
3 Full time shop assistants (work in shifts); 1 fulltime Balloon Seller (weekends only) + 2 casuals when needed. The Balloon Seller sells from the passages and is not based in the shop.
Do any receive special perks or incentives?
All staff is on a basic salary plus incentives on sales.
How involved is the Owner in running the business?
The owner does not spend a lot of time at the shop but is mainly involved in the overall management and financial controls.
Premises
When does the current lease end?
February 2011.
Is there an option of renewal & what period?
2 year option to renew.
What is the annual escalation %?
10%. Rental is based on a base rental plus 10% on turnover above R54 000.
What are the trading hours?
Mon. - Thursday 11am - 9.30pm; Fri. 11.30am - 12pm; Sat. 10am - 12pm; Sun. 10am - 10pm.
Assets
Is a full asset list on file?
We have an full asset list on file.
Are any items not included in the sale?
All assets as seen at the premises
What is their overall condition?
The assets are all in a good condition. Shop only opened February 2009.
Are they presently insured?
All assets and shop contents are comprehensively insured.
S.W.O.T. Analysis
Strengths?
Very well known venue that attracts 1000 of visitors. Excellent security.
Weaknesses?
Long hours and slow weekday trade.
Opportunities?
Marketing to schools etc. Websales.
Threats?
None identified.
Reason For Sale
What is the reason for the sale?
Seller wishes to concentrate on their other business activities.
Conclusion
Why is this a good business?
Cash generating business. Operating from a very secure venue. Peak profitability in December and Easter annually This current calendar year saw profitability of R59 075 in April 2010 and R65 847 in June 2010 due to extended school holiday period.
What is the price plus stock and the net profit?
Selling price R440 000 plus stock og ±R60 000. Average net profit for the last 12 months is R29 018 pm. Avg net profit for the 2010 calender year is R30 357.

Other information

Furniture / Fixtures value:

R168,000 (included in the asking price)

Inventory / Stock value:

R60,000 (included in the asking price)