Summary
Very pleasant and low stress B2B, providing services to highly appreciative business clients. Office based role requiring 4 hours per day on site time, within school hours. Strong growth potential.
Revenue
$132,000 pa
Rent
$67,000 pa
Expenses
$64,000 pa
Net Profit
$1,000 pa
Location Details
Office environment with parking and convenient public transport options. Close to shops, cafes, child care, medical & banking facilities.
Potential
Historically operating around break even, the business has nevertheless paid off the current owner's commercial property investments through rent and drawings. The business operates independently, with its own employee/manager in place. Annual expenses currently include $28,000 wages including SGC, paid to that employee. The purchaser may choose to operate the business themselves directly, paying the $28,000 to themself as wages and SGC. There is further potential to increase revenue with minimal increase in fixed and variable costs.
Skills
The business fundamentally depends on someone who is passionate about customer service and lives by engaging with people and seeing them succeed in their own ventures. Other important skills include being able to sense what clients are looking for and to be able to help them find it. Experience in hospitality, corporate life, office procedures, EA or PA roles, together with commercial savvy would be of great benefit. Digital technology skills - Internet and social media - would significantly facilitate potential revenue growth.
Hours
Self defined on site time currently 20 hrs/wk, 4 hrs/day M-F, within school hrs. Some phone or email time outside that.
Lease
Current lease till 31 Oct 2025 with option to renew for 3 more years. Allow approx $16,000 bond payment (incl in $56k).
Employees
Currently 1 employee, highly experienced at running the business. They may be interested in continuing on, but that would have to be negotiated. The current owner is happy to provide training to the purchaser, as required, for an agreed period.
Reason for Sale
The current owner is at retirement age and seeks to hand over to someone with requisite skills, drive and enthusiasm to see that long term loyal clients are looked after and that the business is grown as it has the potential to do. The business has been established over 15 years and has weathered the GFC and Covid 19, both of which provided challenges and demanded change. Evolution of the business continues, but the current owner - to be practical - needs to hand over.
About the Business
The business is extremely pleasant to operate and does so with minimal stress. Clients are professional and friendly and the physical work location is of the highest professional standard - corporate and effective, yet relaxed and buzzy. It is well served by public transport, parkng, shopping and other facilities. The physical location could reasonably be considered best of all local competitors, while the nature of the business intentionally sits within a growth sector of the economy - with regard to trends that improve work/life balance, enhancie job flexibility, capitalise on WFH opportunities, and increase utilisation of digital technologies.
Clients are a mix of large corporates and smaller owner operated businesses. All tend to be represented by highly motivated individuals, of strong ethical values, diverse interests and extremely pleasant pesonalities. Most clients are long term, having been with the business 5 years or more, and some 10 years or so. Growth potential lies in gaining new clients. The mix between larger corporate and smaller owner operated business clients has proved benefiticial through both good times and the more adverse (eg GFC and Covid). The smaller business clients tend to be more flexible, quicker to react and more ready to sign up to new business, whereas the larger corporate clients have proved more resilient through difficult times.
The current owner has prioritised survival and sustainability as a small business, with slow and steady growth favoured over a potential "boom and bust" scenario. The business is understood to be the longest established amongst its local competitors and, over its 15 year life, has seen various new entrants come and go.
The business has well structured and well documented systems, policies and procedures, with all files and data cloud based using O365. Accounting is via cloud based MYOB and the business carries no debt. The only financial liability at sale will be the residual of the rental lease till end October 2025. Historical accounts to FY2023 are available and IT systems are externally supported.
Depending on aspirations and circumstances, the purchaser may wish to invest in premises and use rent to significantly offset repayments - as the current owner has done - and potentially do this through a SMSF. Benefits of this strategy have significantly contributed to the owner's security in retirement - something not reflected in the P&L result over the years.
The business offers the new owner great flexibility and autonomy in shaping their future.
History
The business was founded by the owner in 2006 and established as a Pty Ltd company in 2007. Over the years the business has been expanded and contracted to reflect economic conditions and owner assessment of opportunities and risk. Contraction, for prudence, followed both the GFC and Covid 19 Pandemic. Most recently since Covid 19, the owner has become more risk averse financially, commensurate with their imminent retirement status, and this has limited uptake of business expansion opportunities that continue to present themselves.
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