BUYING A BUSINESS
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We have been selling businesses for the last 20 years and with this experience we can give buyers the following basic advice when buying a business. These suggestions are not exclusive but may give a guideline to any party who may be buying for the first time. When deciding on a business, make sure that you have the capability and capacity to run a particular business. If you want time with the family, don’t buy a pub, or if you have no mechanical experience, stay away from a workshop. If you have had no previous experience in running a business and want to augment your retirement funds, don’t sink all of these funds into a business which may be dependant on a successful operator whose personality may be very different from yours. Never buy a business because it has “potential”. The question must always be asked: Why did the seller not realize the potential? Buy on proven track records only. Only if you have previous experience in a similar business, should the future potential be persuasive factor when buying.
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March 2010
BUSINESSES FOR SALE IN KNYSNA
We have a variety of categories of businesses for sale in Knysna. The following are a cross section of the various types. If prices are referred to they are asking prices only and the trading figures must be confirmed by purchasers. We cannot vouch for them.
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1. COFFEE SHOPS, RESTAURANTS AND PUBS
1.1 Two of the town’s smaller and easy to manage pubs. Both are excellent value giving great returns – from R350 000.
1.2 A takeaway adjacent to the law courts with a very long history of only one owner.
1.3 A choice of coffee shops: The first is one of the oldest coffee shops under oak trees with a tranquil ambience and the other is set to take advantage of a rapidly growing commercial and tourist area in Knysna.
1.4 A charming restaurant and pub in a resort complex with a captive market for breakfasts and dinners, and is popular with the local public. This historical building houses not only the restaurant but also accommodation for the owner. The selling price is a very reasonable R400,000.
1,5 A franchised restaurant which is represented by over 150 successful franchises in RSA, seating 130 and well staffed - with the training and back-up by the franchisor, no restaurant background is necessary to run this lucrative business. Asking price: R1.3m.
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2. MANUFACTURING AND BUILDING INDUSTRY
2.1 Knysna’s oldest pie manufacturer with two outlets and a restaurant cum coffee shop. The R320,000 purchase will give a 30% return on your investment.
2.2 Well known small manufacturer of timber related products with a retail outlet in the centre of town. The owner is selling because of other commitments and the asking price equates to net asset value of R200 000.
2.3 A service industry business related to the cleaning of all natural stone whether newly installed or older- this business has very limited overheads and can easily be run from home. The equipment, including a vehicle, is valued at approximately R100,000. The business will earn an investor ±R15,000 per month and the asking price is R200,000.
2.4 Manufacturer of a glass fibre product with on-going demand for the product. Essentially the owner would like an investor who could relieve him of the factory management and take over the production. No marketing would be required by the investor. Price on application.
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3. HARDWARE AND RETAIL OUTLETS (Gifts and Boutiques etc.)
3.1 Knysna’s best known shop of collector’s and second hand goods. The income is excellent – purchase just the stock to acquire this lucrative business of 20 years standing with regular repeat business.
3.2 Knysna’s leading gift shop showing profits of R220,000 p.a. after manager’s salary.
3.3 Hardware store supplying a variety of timber related products to the building industry and the DIY guy. Been operated by the same owner for 12 years and has a well established regular clientele. Turnover of approximately R3.4m pa with a gross profit of 28%.
3.4 Knysna’s best known florist which requires essentially 2 to run (although it does have a qualified florist) as it is a very busy operation. The asking price is R440,000 plus stock with the owner earning R175,000 pa.
3.5 A store selling electrical appliances catering to the discerning buyer earning the seller R650,000 pa. This is an easy to run business with a good track record and well trained staff.
3.6 An outlet supplying domestic and industrial gas from in the Garden Route. The demand fro the product is ever increasing and the selling price will give the purchaser a return of 30% on their investment. – Very low overheads
3.7 A well established business selling and servicing chain saws, mowers, weed eaters etc. Well trained staff with ongoing service contracts and suppliers.
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4. TOURISM AND LEISURE
4.1 Choice of Bed and Breakfasts and Backpackers Lodges from small to large: from R2 million right through the range up to R24m.
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5. MISCELLANEOUS
5.1 T.V. Satellite installation and repair business with good staff.
5.2 Well known centrally situated beauty and day spa salon. Extremely well equipped and is presently run by owner only with no staff but has capacity to grow. High returns from mainly local clientele.
5.3 Graaff-Reinet: highly successful service orientated franchise business with very little competition but offering a highly sought after product. The asking price of R550,000 will give a return of approximately R120,000 pa.
5.4 Distributor of gas to the domestic and commercial market under contract. This product does not suffer from recession blues as it is a necessity. This well established business will give a secured income to the purchaser. The price of R1.65m includes 2 delivery vehicles and a trailer, plus an income of approximately R51,000 per month.
5.5 Plumbing business with well established clientele. The seller will also sell the house from which he runs the business as it includes a large storage and workshop area thus eliminating the need for a business premises. The business is well equipped with qualified plumbers in its employ.
5.6 A small ice cream manufacturing business together with a retail outlet which operates as a coffee shop. The asking price equates to the cost of the equipment only at R700 000. Great development potential.
5.7 LA small home baking industry selling its products to various supermarket outlets - an ideal business for a lady to run part time - yet giving a reasonable monthly income.
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If you find any of the above of interest, please contact Duncan Simpson, so that further information can be provided.
Email: dsimpson@huizemark.com Tel: 044-3825181 a/h 044-3840313 Cell 0825696495
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