Fully describe the business's activities?
The owner has a schedule for 2 industrial sites & 35 individual houses, that allows for efficiencies from the very capable staff (4) to provide gardening & pool services to its established client base. Refuse removal, tree felling & ad hoc garden cleans ups are also a source of income.
The business offers weekly & fortnightly garden maintenance in and around the Pinetown to Hillcrest suburbs.
The owner drives the team around.
How long has the business been established?
14 years by the owner
How are the clients attracted to the business?
Word of mouth and a Facebook recommendations.
What are the seasonal trends?
From May to October there is a slight drop off, which is compensated by reducing the staff to 3, while also get more tree cutting during these months
Is the business VAT Registered?
no
Are there up-to-date Management Accounts available?
There are no AFS available but all information is on Sage for the last few years. This report shows generalized values compared to the varying Sage Reports.
Client addresses etc will be provided at the Due Diligence stage.
As per most Garden Services, there are no contracts with the scheduled clients but an understanding of weekly/bi-weekly servicing ( 37 clients ) or a one-off service.
The turnover pa amounts to R523k from scheduled garden services & R122 from ad hoc clean-ups/tree felling, while the Net Profit/ Owners Discretionary Income (including his benefits) amounts to R316k pa (with every expense covered).
How could the profitability of the business be improved?
Marketing, business development & additional services being pushed for with existing clients, asking for referrals across WApp & facebook accounts.
What is the total staff complement?
4 staff driven by the owner
Property details
The business is operated from home, where the bakkie & tools are kept
What are the main assets of the business?
1 x Nissan Hardbody with drop sides flat bed 1998 Valued 2nd hand at R45 000
5x Brush cutters
2x Blowers
1x Hand held Blower
1x Chainsaw
1x Hedgetrimmer
1x Extension Poll Hedge Trimmer
1 Spade and fork
Value 2nd hand at R 15 000
All fully paid-up
Strengths?
Established name providing services for 14 years
Strong existing client base - 2 industrial sites & 35 indiv houses, in western suburbs of Durban
Steady year round income
Well trained team members
Weaknesses?
Nothing done in respect of business development to bring in new clients
Opportunities?
A new owner could use the established name to target estates and complexes & continue to minimize travel and thereby business efficiencies.
One could have discussion with the seller to takeover two affiliated business opportunities:
1. Dealer account in respect of garden equipment, that brings in some R50-70k NP pa
2. Contractor sideline, where subbies are available to carry out painting, paving, refurbishments, that brings in over R100k NP pa
Threats?
That competitors try to under-cut prices (but not likely due to past quality of service provided over years)
What is the reason for the sale?
Owner is emigrating
Why is this a good business?
Competitive Sale Price of R580 000 for a Pinetown to Hillcrest focused Garden Service (37 clients) !
The turnover pa amounts to R523k from scheduled garden services & R122 from ad hoc clean-ups/tree felling, while the Net Profit/ Owners Discretionary Income (including his benefits) amounts to R316k pa (with every expense covered); while two other side-line businesses (under opportunities above) could be linked hereto.