Internal Ref: 012607/22
Summary
THIS EASY-TO-RUN BUSINESS IS CRUCIAL FOR ALL BUSINESSES When the economy booms this business booms, when the economy cools this business continues to grow. PLENTY OF UPSIDE HERE!
Revenue
$813,536 pa
Net Profit
$197,796 pa
Location Details
Located in the main commercial centre in Mandurah with main road frontage. By 2050, the Peel Development Commission expects the region’s population will have risen to 444,000. Operate this business and enjoy a coastal lifestyle.
Potential
IMMEDIATE OPPORTUNITY FOR EXPANSION
When the economy is in a downturn, businesses need to increase their marketing and promotion to sustain sales and market share, and so spend money on signage. When the economy is booming, new businesses open, and existing ones expand, all requiring new signage. As a result, this business has continued to record increases in sales and gross profits over the past four years and the vendor sees no reason why this trend will not continue.
Skills
The current owner opts to work part-time in the business, for about 30 hours per week and oversees administrative functions with staff and management in place to handle the day-to-day operations. A buyer could opt to hire a salesperson to take over the owner’s quoting and customer-facing tasks along with boosting revenues, or a GM to handle the entirety of the owner’s role if desired. His main duties are staff management, general admin, completing orders, payment of suppliers and staff, and responding to calls and emails as required.
Hours
The business operates 5 days a week, 8.00 am to 4.30 pm with the current owner working 30 hours per week.
Lease
The current vendor owns the building and would provide a new owner with a long term lease for around $42,000 per annum.
Employees
The business operates with 4 full-time employees, plus the part-time owner and one casual worker as required. Duties of employees include graphic design, customer service, signage installation signage printing, and vehicle wrap assistant.
Reason for Sale
As with all people's lives, there comes a time to think of retirement and we are not getting any younger so we have reluctantly decided to sell the business. The low-risk features of this business offers are too hard to pass up. It generates an automatic reliable monthly revenue stream without a sales force.
Our time has come and the motivation is diminishing and the business is ripe for a new owner to take the business to the next level.
About the Business
REPEAT ORDERS WITH LIMITED MARKETING
The long-standing reputation of the business requires no aggressive marketing strategies or external sales force, as sales are generated primarily by customer referral and word of mouth. Increased sales could be achieved by implementing additional sales generators. Customer retention features include:
* State-of-the-art equipment – the business has kept pace with technology and along with well-trained staff maintains and operates the equipment.
* The location is close to customers for convenience and is located in the main industrial area on one of the major roads, allowing easy access and exposure.
* Intellectual property relating to some customers remains with the business and hold their graphic art on file meaning reordering is easier and it’s less costly to have graphics redesigned.
* A long trading history, with many customers trading with the business since its establishment this business prides itself on its quality of service and customers refer others to the business and return to it over the years.
* Proven systems are in place and schedule all jobs and adhere to the schedule whenever possible (sometimes the weather has an impact) so its customers can maximise their branding/advertising exposure.
DIVERSE PRODUCT RANGE AND CUSTOMER BASE
Drawing on its extensive industry knowledge and the ability of staff to recommend proven solutions, provides trusted advice on the different types of these simple manufacturing processes and source materials to provide cost-effective solutions to its loyal customer base.
This business is fortunate to provide its customers a full service from manufacture to installation and has invested in specialist equipment to ensure the process is seamless and professional.
KEY FEATURES OF A SOLID RECESSION-PROOF BUSINESS
* Low risk – onward-upward sales trend despite covid19 epidemic and economic downturns
* Long established for 3 decades – proving it can grow in economic downturns
* High asset mix in the purchase price
* The low staff of four full-time employees plus the owner
* The owner works around 30 hours per week
* Immediate potential to expand with limited advertising currently undertaken
* Low stock holding and working capital requirements
* Ease of operation with minimal experience needed
* Self-propelled sales growth via word-of-mouth and website
History
The business has been in Mandurah for over 30 years and has a loyal repeat client base that accounts for around 80 percent of total revenues. There are only a few companies locally that produce similar products and that can handle specialised signage such as billboards.
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