Fully describe the business's activities?
Garden services (Mon-Fri) are provided to Pinetown, Kloof, & Hillcrest established client base of 6 complex's & 7 office-industrial sites & schools, with one worker allocated to each, allowing that staff member to travel there each day, access their storeroom on site, then continue with what work he hadn't finished the day before (no transport requirements). The gardens are established with maintenance being the main focus.
Tree felling, landscaping & ad hoc garden cleans ups are add-hoc opportunities at which stage additional stand-by staff would be brought in, who also stand-in for sick staff or those on leave, and are separately charged for vs the standard monthly fee. General day cuttings are removed by an external provider.
How long has the business been established?
17 yrs (with some clients from that long ago) - 3 with the present owner
How does the business operate on a daily basis?
The owner relaxes while the staff make their way to their allocated site and commence work. At some stage, once to twice a week, the owner will pop-in to each site to provide further instructions as received from clients or as per the owner's thoughts, while dropping fuel & consumables.
How are the clients attracted to the business?
The owner does no marketing or business development and has only just re-activated the website for the Purchaser's benefit going forward (since he wasn't interested in growing his client base).
Anything a new owner does, utilizing the business history & client base as a selling pitch, will ensure that other complexes / large sites will seriously consider this business's offer over that of the "bakkie-brigade".
Does the business have any contract work?
It doesn't have contract work per se, but clients have been with them for years and the monthly fee set once-a -year.
3 clients are on 12-month contracts, with 1 month escape clauses, while the rest are on month-to-month, as is the norm for garden Co's.
Some have been with the Co for over 15 years & most for many years - as they are happy that the staff work well according to each client's needs - which 99% of other Garden Service Co's don't do.
What competition exists?
Their only competitors are the "bakkie-brigades" which don't suite their clients that would rather have 1 worker being responsible for maintaining their existing gardens with inherent/acquired knowledge, which they find more trust-worthy and less intrusive.
What are the seasonal trends?
Very steady business throughout the year, but cutting, pruning, planting periods will bring in ad hoc income.
Is the business VAT Registered?
2 Divisions: One is Vat registered (all submissions are correct & to date), while one is not.
Are there up-to-date Management Accounts available?
YES - The 2 Co's use Xero Accounting package which will provide all the detail on the business, historically to date, as well as, being linked to the 2 Bank Accounts for further support of the financial position of the business; noting that all clients pay by eft into such bank accounts.
All expenses even for external service providers are covered within the expenses before a NP (including owners benefits) of R4480 000 is achieved off an annually steady turnover of R1.4m.
What is the total staff complement?
13 - all being gardeners, while some 2 back-ups are available when others are sick/on-leave, or when ad hoc projects present themselves.
How involved is the Owner in running the business?
The owner visits each site about 1-2 times a week, ensuring clients requests if made are dealt with, for only some 12-15 hours a week, while all the accounts (set monthly fee) are literally automatically dealt with through Xero Package, linked to the Bank Acc
When does the current lease end?
The business doesn't need premises as each complex/client houses the tools/ equip on-site
What are the main assets of the business?
NP 200 (2016 170 000km's) is excluded, while various equipment & tools housed on each client site.
They are all in working order & valued at some R15 000 on a 2nd hand basis.
What is the reason for the sale?
The seller is retiring
Why is this a good business?
Easy to operate garden service business, where gardeners proceed under their own steam for the 5 days & the owner only visits 1-2 times a week.
Off a steady turnover of R1.4m, the NP including owners benefits totals R448k.