Non Franchise Video & Game Store For Sale

Business description

History Background
Fully describe the business's activities? This business is a well known independent DVD Rental Store, with a large DVD rental selection & recently upgraded to a Superstore that sells, rents & trades Video games.
How long has the business been established? The business was established during 2005.
How long has the owner had the business? The current owner bought the business 3 months ago.
Present Market
How are the clients attracted to the business? The business is located in a busy neighborhood shopping centre with well known anchor tenants & fast foods outlets that attracts a lot of clients. The store design is upmarket to suit the profile of the clients.
What Advertising/Marketing is carried out? The business uses mass sms to notify their customers of new arrivals and specials.
Does the business have any contract work?
What competition exists? None in the shopping centre but there are various other video stores in the area. This video store however distinguishes itself due to the large selection of titles and video games as well as good customer service.
What are the seasonal trends? School holidays always result in higher sales.
Financial
Is the business VAT Registered? The business is VAT registered but forms part of a larger group. No vat documentation on file.
What VAT documentation is on file.? None
Are there up-to-date Management Accounts available? We have management accounts from March 09 to May 09.
What Balance Sheet and Income Statements are available? The current owner is only trading since March 09 but will be able to disclose the former owner's trading results to a buyer.
What percentage of of the business is cash/credit? 100 Cash business. 55% of sales are cash and the balance per credit card.
Staffing
What is the total staff complement? The store is manager run. 1 Manager and 2 casuals when needed. The manager will not be available for the new owner as he is supporting the seller in his group. The seller however will assist in finding a suitable replacement.
How involved is the Owner in running the business? The owner only spends ± 4 hours per week at the store.
Premises
When does the current lease end? 2012
Is there an option of renewal & what period? There is an option to renew.
What is the annual escalation %? 10% per annum.
What are the trading hours? 10am to 9pm Sunday to Thursday. Friday - Sat. 10am - 10pm.
What is the square meterage of the business? 70m²
Assets
Is a full asset list on file? A full asset list is available.
What is their overall condition? The assets are all in an excellent condition.
How have they been valued. ? Owner's valuation.
Are they presently insured? All assets are comprehensively insured.
S.W.O.T. Analysis
Strengths? Well established business in an affluent area.
Weaknesses? None identified
Opportunities? Huge growth opportunities.
Threats? None identified.
Reason For Sale
What is the reason for the sale? Owner's stays in Pretoria and has another bigger business opportunity he would like to pursue.
Conclusion
Why is this a good business? Well established, profitable and well priced. The repayment period is 21 months with a ROI of 60%.
What is the price plus stock and the net profit? The total price of the business including stock of R335 000 is R440 000.

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R101,000 (included in the asking price)

Inventory / Stock value:

R335,000 (included in the asking price)