Interior Design Studio For Sale

Business description

History Background
Fully describe the business's activities? Business is very well situated in major through road and surrounded by trendy shops. Was voted one of the trendiest shops in Jhb and has featured in "The Property" magazines as well as other main stream magazines.
How long has the business been established? This business has been established for 9 years.
Present Market
How does the business operate on a daily basis? The staff generate 70%, seller the balance. The seller wants to continue designing. Customers include decorators and designers as well as private individuals.
How are the clients attracted to the business? Through word of mouth, interior designers, reputation
What Advertising/Marketing is carried out? The studio often features in magazines and this is not paid for.
Does the business have any contract work? No contract work exists but there are strong relationships
What competition exists? There is limited competition due to the fact that items can be made to order
Financial
Is the business VAT Registered? Yes, business is vat registered
Are there up-to-date Management Accounts available? Yes, up to date accounts are available
How could the profitability of the business be improved? To continue with placing stocks in additional studios, both in Jhb and surrounding towns
Staffing
What is the total staff complement? There are 4 production staff, 1 shop assistant and another part time employee
Do any have management potential? There is one staff member who looks after the daily running of the business.
How involved is the Owner in running the business? The seller isn't involved in running the business daily. Her function is to do designs, running courses and meet with designers who are looking for something unique for their clients.
Premises
When does the current lease end? The seller owns the building - new lease will be drawn up with her.
What are the trading hours? Trading hours are Monday to Friday 9am - 5pm and Saturdays 9am to 1.30pm
Assets
Is a full asset list on file? Full asset list is available. There is a limited asset value, consisting of fixtures and fittings of shelving, till point etc. Value of assets lies on raw materials and stock. Stock is held locally and in 2 studios in towns which are know to be weekend getaways.
S.W.O.T. Analysis
Strengths? Age of the business, brand, position , product offering, little competition on tiles made.
Weaknesses? The seller has been the core of design input to date.
Opportunities? Expand to other shops / studios
Threats? The new owner should not change the look or image.
Reason For Sale
What is the reason for the sale? The seller wants to focus on design and will sell stocks through this business.
Conclusion
Why is this a good business? This is a very attractive proposition for someone who has an artistic flair. The price is attractive due to stock and raw materials value.
What is the price plus stock and the net profit? Priced at R1 million including stock of R280 000 and netting on average R38 000 per month

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R275,000 (included in the asking price)

Inventory / Stock value:

R280,000 (included in the asking price)