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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BUSINESSES FOR SALE IN KNYSNA
AUGUST 2010
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 and a takeaway shop for sale at net asset value in a busy shopping centre
1.3 Two delightful coffee shops, one incorporates a lovely small gift shop.
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 An Italian restaurant (15 years in the same family) with seating for 75 inside and 30 outside with a real goodwill factor as it is well known and respected by locals and visitors alike – only R650 000 and possibly negotiable.
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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 A partner required for a manufacturer of a well known highly regarded household product who requires some capital to continue the marketing while the existing partner will continue with the manufacturing process. This business is in fact well established but due to unforeseen circumstances, problems arose but these have now been removed and the seller is looking to move forward again. A capital injection of R400 000 would suffice.
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 fiber 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 but the investor would be required to take an active role in the management of the factory which has outstanding orders for at least 5 months production.
2.5 A well established business with never less than two month’s production: This is a manufacturer of production line furniture with markets from Port Elizabeth to Cape Town as well as a producer of custom built cupboards and shop fittings etc for the top of the range establishments. The business requires a purchaser of a retiring member’s loan account and his 66% shares for R1,2m. The remaining partner designs, manufactures and installs the custom required fitted installations. The ideal purchaser would be a person versed in accounting and with a knowledge of production.
2.6 A unique swimming pool manufacturer who installs and designs pools to customer requirements at the top end of the market, some as far a field as The Indian Ocean Islands and Angola, such is the reputation of the business. The pool construction is of hand packed concrete so the business could expand if prefabricated pools were introduced. Overheads are low as the business is run from the owner’s double garage and orders come regularly from architects and builders. Turnover is approximately R4m pa leaving a profit of about R250 000 pa after a salary to the owner. Asking price is a reasonable R400 000 plus the outstanding value of the two vehicles (optional) and any stock which will not be great.
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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 pa 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 for 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. A partnership will also be considered.
3.8 A well priced very profitable bottle store in town centre with regular clientele and small staff. Price R2,4 million plus stock of +/- R500 000.
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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.
4.2 A business supplying all forms of requirements for the catering industry and to individuals whether for sale or lease. This business has huge expansion potential as it has yet to tap into the domestic market.
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5. MISCELLANEOUS
5.1 T.V. Satellite and sound system installation and retail business with a well trained and highly respected and motivated staff. This business has excellent goodwill in town and shows a very healthy return. It is also the only accredited MWeb agent in Knysna. The purchaser would have to be a marketing person with not necessarily a technical background. Well priced at R1,6m plus stock.
5.2 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.
5.3 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.
5.4 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.
5.5 A franchised computer training centre aimed at the first time users. Well supported by local business and the Municipality. Reasonably priced with a very steady income.
5.6 A service orientated business with a very healthy client base. It is a business ideal for a retired lady looking for a good income from an investment of R400 000.
5.7 A non-franchised filling station and mini market in a captive market area. The business is open only from 6am to 9pm during the week but longer over weekends. Netting approximately R50 000 pm with asking price of R3m and possibly negotiable.
5.8 A small auto valet business with most of the dealers as clients and the income augmented occasionally by the sale of second hand vehicles which come through the business. This business has only a small well trained staff and has enormous growth potential.
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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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