Summary

There are a few business sectors that are showing healthy growth, this is one of those sectors. With the demand for security solutions increasing so does the growth potential for an established business like this.

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Fully describe the business's activities?

The business delivers a range of security solutions which include:
Placement of guards.
Access Control.
Alarm installations and Maintenance (outsourced).
Armed Response (outsourced).

How does the business operate on a daily basis?

The owner has an operational manager in place, the two of them oversee all guard reporting on a daily basis. The operational manager is responsible for the reconciliation of all the clock in and out entries. The operational manager together with the owner manages the shift scheduling of guards. The guards get to the respective sites on their own account where they then clock in for duty. The owner visits the clients on a weekly rotational basis to ensure healthy relationships are maintained with the decision-makers. During these visits, he reports back on the last week's activities, guard report entries, and any other relevant observations. The owner does all payroll calculations.

What are the seasonal trends?

Load shedding has increased the demand for security services such as guards.
Over the festive season and holiday periods, the demand for all security services increases.
Guards are always needed thus the demand increase at times but never decreases in the other months.

How could the profitability of the business be improved?

Some services are currently sub-contracted, increasing the infrastructure and delivering the services in-house will up the profitability of the business.
Increase client base through marketing and advertising campaigns.
Appoint a representative to fast-track the growth of new customers.

Give a breakdown of staff/ functions/ length of service?

1 x Operational Manager.
3 x Supervisors.
47 x guards.

Do any have management potential?

Yes, the operational manager has been in the industry all of his life and is very loyal. He will be a big asset to the new owner.

How involved is the Owner in running the business?

On a daily basis. It is important for the owner to keep the communication channel with his customers open and to be in good standing with the decision-makers.

When does the current lease end?

This business can easily be run from home. No need for costly rental agreements.

What are the main assets of the business?

Nissan NP 200.
Radios and other electronic equipment.
Goodwill.

Strengths?

As crime grows the need for security services grow.
Load Shedding results in higher demand for security solutions such as guards.
Excellent relationships with all clients.
Growing by reputation only, with no extra effort.
This is a must-have service, not a luxury item.

Weaknesses?

Human error.
Load shedding makes service delivery more challenging.

Opportunities?

Grow the client base through advertising campaigns or by appointing a sales representative.
Grow infrastructure to keep sub-contracted services in-house.
Diversify and expand the services offered.

Threats?

No real threats were perceived.

Why is this a good business?

It is difficult to predict what sector of the market will not be affected by the current economy, but one thing that you can bank on is that security services in South Africa will only go from strength to strength!