MANDATE REPORT

1. History Background

Fully describe the business's activities

This boutique deliver a unique and recognisable style of original designs, inspired a line of shoes, which in turn, leads the way to matching handbags, fantastic fashion jewellery and watches. The interdiction of funky exciting cosmetics completes the look the brands want to portray.  Woman of all back grounds and ages can enjoy wearing ladies fashion clothing, accessories, bags and shoes made of quality products. This is not a franchise. The selling price is negotiable. There is a other similar store in Durban area also on offer.  

How long has the business been established?

4 years in the Shopping centre.  Started in 2008. This business is part of a group that started to trade in the city of Durban.

How long has the owner had the business?

This branch At the premises for the last 7 years.

2. Present Market

How does the business operate on  a daily basis

There is a manager and supervisor that operate the business. They manage the staff and stock requirements.

How are the clients attracted to the business

Word of mouth, great location in a busy centre. Well known brand.

What Advertising/Marketing is carried out

A website, emails to costumers database and sms data base is used in their marketing plan.

Does the business have any contract work

No, this is a cash operated business

What competition exists

None, as they manufacture their own product range. In the mall, quit a lot of competition exists.

What are the seasonal trends

The fashion industries are seasonal.

3. Financial

Is the business VAT Registered

YES.

What VAT documentation is on file?

All returns.

Are there up to date management accounts?

Yes

What audited financials are available, income statement and or balance sheets?

 Up June 2013

What percentage of the business is cash/credit?

Credit cards =60%.

Cash=40%

What is the age analysis of the debtor’s book?

A cash business. No debtors book

How could the profitability of the business be improved?

More aggressive marketing plan

Is Seller finance available and for what amount?

N0

4. Staffing

What is the total staff complement?

Total staff=3

Staff Breakdown and length of service

 3 x supervisor, Sales/cashiers ladies x 2

.

Do any receive special perks, bonuses or incentives?

Yes, all receive a free fashion product every month.

Are they on contract?

Staff are contracted

Do any have management potential?

Yes, there is a Supervisor that currently manages the Store.

How involved  is the Owner in running the business

The owner is based in Durban and does regular visits when possible.

5. Premises

When does the current lease end?

The current lease ends 28 February 2015.

Is there an option of renewal & what period

Yes.

What is the annual escalation %?

8 % per year

What are the trading hours?

Mondays to Thursdays from 9h00 to 17h00, Weekends 9h00 to 18h00.

What is the square meter age of the business?

69 sqm Shop.

Is a copy of the lease available?

Yes on request

Do you require a licence?

A Business Licence

6. Assets

Is a full asset list on file?

Can be prepared.

Are any items not included in the sale?

Yes all assets are included in sale.

What is their overall condition?

Good condition

Do any require repairing?

No

How have they been valued?

By owner.

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

N/a

Will Seller settle or Buyer to take over?

N0

Are copies of agreements available?

n/a

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths

Well known brand that design and makes his own product that located in a good location. Supply of merchandise is available. Brand started in Durban area.

Weaknesses

The brand was started in Durban and is well known in that area. None, there products are unique

Opportunities

A national marketing plan needs to be done. Owner hands on approached are needed.

Threats

There is a lot of competition but does the business uniqueness soften the threats.

8. Reason For Sale

What is the reason for the sale?

Owners diversifying and requires time to focus on new venture

9. Conclusion

Why is this good business to buy?

This business shows good profits. It is located in a very well known location. With good hands on management can this boutique make good owner lots of money?