MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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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.
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How long has the business been established?
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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.
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How long has the owner had the business?
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This branch At the premises for the last 7 years.
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2. Present Market
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How does the business operate on a daily basis
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There is a manager and supervisor that operate the business. They manage the staff and stock requirements.
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How are the clients attracted to the business
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Word of mouth, great location in a busy centre. Well known brand.
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What Advertising/Marketing is carried out
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A website, emails to costumers database and sms data base is used in their marketing plan.
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Does the business have any contract work
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No, this is a cash operated business
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What competition exists
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None, as they manufacture their own product range. In the mall, quit a lot of competition exists.
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What are the seasonal trends
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The fashion industries are seasonal.
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3. Financial
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Is the business VAT Registered
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YES.
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What VAT documentation is on file?
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All returns.
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Are there up to date management accounts?
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Yes
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What audited financials are available, income statement and or balance sheets?
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Up June 2013
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What percentage of the business is cash/credit?
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Credit cards =60%.
Cash=40%
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What is the age analysis of the debtor’s book?
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A cash business. No debtors book
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How could the profitability of the business be improved?
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More aggressive marketing plan
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Is Seller finance available and for what amount?
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N0
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4. Staffing
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What is the total staff complement?
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Total staff=3
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Staff Breakdown and length of service
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3 x supervisor, Sales/cashiers ladies x 2
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Do any receive special perks, bonuses or incentives?
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Yes, all receive a free fashion product every month.
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Are they on contract?
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Staff are contracted
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Do any have management potential?
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Yes, there is a Supervisor that currently manages the Store.
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How involved is the Owner in running the business
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The owner is based in Durban and does regular visits when possible.
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5. Premises
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When does the current lease end?
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The current lease ends 28 February 2015.
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Is there an option of renewal & what period
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Yes.
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What is the annual escalation %?
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8 % per year
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What are the trading hours?
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Mondays to Thursdays from 9h00 to 17h00, Weekends 9h00 to 18h00.
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What is the square meter age of the business?
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69 sqm Shop.
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Is a copy of the lease available?
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Yes on request
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Do you require a licence?
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A Business Licence
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6. Assets
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Is a full asset list on file?
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Can be prepared.
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Are any items not included in the sale?
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Yes all assets are included in sale.
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What is their overall condition?
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Good condition
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Do any require repairing?
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No
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How have they been valued?
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By owner.
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Which assets are on lease/HP and with whom?
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None
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What are their settlement amounts?
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N/a
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Will Seller settle or Buyer to take over?
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N0
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Are copies of agreements available?
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n/a
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Are they presently insured?
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Yes
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![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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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.
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Weaknesses
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The brand was started in Durban and is well known in that area. None, there products are unique
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Opportunities
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A national marketing plan needs to be done. Owner hands on approached are needed.
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Threats
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There is a lot of competition but does the business uniqueness soften the threats.
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8. Reason For Sale
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What is the reason for the sale?
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Owners diversifying and requires time to focus on new venture
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9. Conclusion
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Why is this good business to buy?
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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?
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