MANDATE REPORT
|
1. History Background
|
Fully describe the business's activities
|
This coffee shop focuses on the day trade at a very busy landmark spot. The spot has a busy supermarket various other shops, and some restaurants. One is very busy during the day and the other at night. The business doesn’t leverage off this effectively, although it is the oldest of the three establishments. The area is high income and has some upmarket offices around as well. They also do catering and home cook meals to a degree for some of these clients mixing this with a coffee shop and bistro. With the right mix, character and touch it will flourish. Can you bring that to the table?
|
How long has the business been established?
|
7 Years
|
How long has the owner had the business?
|
6 years.
|
What steps are in place to solve "load shedding" problems
|
N/A
|
2. Present Market
|
How does the business operate on a daily basis
|
Owner operated
|
How are the clients attracted to the business
|
Word of mouth, promotions, catering and a lot of passing trade in the area. Also mothers drop their children at the primary school in the mornings and stop for a breakfast. So does some of the business people in the area.
|
What Advertising/Marketing is carried out
|
Offer home cooked meals to patrons. Also catering, as a lot of business people eat there over lunch or during breakfast.
|
Does the business have any contract work
|
No contracts, but regular clients gets catered for. Ie Platters for meetings etc.
|
What competition exists
|
Normal competition
|
What are the seasonal trends
|
Quite during December holidays, and other holidays also quieter. Rest of the year is pretty flat.
|
3. Financial
|
Is the business VAT Registered
|
Yes
|
What VAT documentation is on file?
|
N/A.
|
Are there up to date management accounts?
|
Yes
|
What audited financials are available, income statement and or balance sheets?
|
May 2013. Management accounts available which reflects the current lower turnover and income and expenses more accurately
|
What percentage of the business is cash/credit?
|
Cash or C/C
|
What is the age analysis of the debtor’s book?
|
N/A
|
How could the profitability of the business be improved?
|
Increase sales, reduce expenses and bring food cost into industry lines
|
Is Seller finance available and for what amount?
|
No
|
4. Staffing
|
What is the total staff complement?
|
8 permanent staff and pool of 6 waiters.
|
Staff Breakdown and length of service
|
Kitchen 7, Bar 1, waiters 6
|
Do any receive special perks, bonuses or incentives?
|
N/A
|
Are they on contract?
|
8 permanent staff yes
|
Do any have management potential?
|
1 staff member acts as manager and locks, unlocks if the owner are not there.
|
How involved is the Owner in running the business
|
Owners operated currently.
|
5. Premises
|
When does the current lease end?
|
June 2015.
|
Is there an option of renewal & what period
|
|
What is the annual escalation %?
|
|
What are the trading hours?
|
Mon – Fri 07:30-20:00 Public Holidays 09:00-14:00
Sat 09:00 – 17:00
Sundays - Closed
|
What is the square meterage of the business?
|
81m2 +40m2 outside
54 Seater Venue
|
Is a copy of the lease available?
|
Yes
|
Do you require a licence?
|
Yes, liquor licence and its valid until Oct 2013, when it will be renewed for 12 months.
|
6. Assets
|
Is a full asset list on file?
|
Yes
|
Are any items not included in the sale?
|
The business entity has a vehicle in it not for sale, not on asset list either
|
What is their overall condition?
|
Good.
|
Do any require repairing?
|
No
|
How have they been valued?
|
Replacement
|
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?
|
N/A
|
Are copies of agreements available?
|
N/A
|
Are they presently insured?
|
Yes. The current owners also have special public liability insurance.
|
![]() ![]() 7. S.W.O.T. Analysis
|
Strengths
|
Nice position.
|
Weaknesses
|
A bit small
|
Opportunities
|
Change the concept to differentiate from the others, carve your niche for the patrons.
|
Threats
|
None perceived
|
8. Reason For Sale
|
What is the reason for the sale?
|
Lifestyle change for the owner with small child.
|
9. Conclusion
|
Why is this a good business to buy?
|
An opportunity to enter at the bottom and grow the business.
|