Passenger Transport Business For Sale

Business description

History Background
Fully describe the business's activities? The business offers passenger transport services through 3 cars and a bus. The business was started 7 years ago by the seller. It has always operated out of the Northern suburbs in the greater Sandton/Rosebank areas. Currently the business is run via cell phone with no marketing or advertising taking place. The business does have some contracts.
How long has the business been established? Business has been established for 7 years
How long has the owner had the business? Since inception
Present Market
How does the business operate on a daily basis? Seller is the key manager in the business. He takes all calls and diverts cars as required. Daily bus trips and township tours are undertaken on request for contract clients
How are the clients attracted to the business? Through past trading & word of mouth
What Advertising/Marketing is carried out? No marketing is currently undertaken
Does the business have any contract work? Yes, contract work does exist
What competition exists? There are a number of competitors
What are the seasonal trends? Business is varied but there are no seasonal trends
Financial
Is the business VAT Registered? Yes, business is vat registered
Are there up-to-date Management Accounts available? No, Seller will provide to serious buyers
What percentage of of the business is cash/credit? There is a percentage of cash
What is the age analysis of the debtors book? The book is about R50,000
How could the profitability of the business be improved? Internet and other marketing and advertising
Staffing
What is the total staff complement? 3 drivers and owner
Premises
When does the current lease end? Works form home, but office would be preferable
Assets
Is a full asset list on file? Vehicles are Merc Vito, 2X Toyota Corolla, VWJetta
What is their overall condition? Assets are in good condition
Which assets are on lease/HP and with whom? leases will be settled
S.W.O.T. Analysis
Strengths? Well established, with contracts, well known business
Weaknesses? No marketing being done, the seller is running this business from home premises
Opportunities? Major expansion possible, more marketing
Threats? Other competitors
Reason For Sale
What is the reason for the sale? Seller is emigrating
Conclusion
Why is this a good business? Established business with contracts in place
What is the price plus stock and the net profit? R1,8 million all in. Average monthly net profit is R92 700

Other information

Furniture / Fixtures value:

R550,000 (included in the asking price)