Computer Skills Centre - MicroSoft Products. Eastgate Area. Relocatable.

Asking Price

R650,000

Monthly Profit

R37,156

Asset Value

R 300,000

Stock Value

R 0

Yearly Net Profit

R 445,870

Summary

This Computer Skills Centre has been operating for over 30 years focusing on training and upskilling in the MicroSoft arena of products. Intellectual Property of the courses and their structure are included in the sale. A business that can grow quickly and exponentially with new owner focus and marketing.

Give me more information

Fully describe the business's activities?

Computer Skills Centre focusing on training for Microsoft products such as MS Word, Excel, PowerPoint. Outlook etc.
Courses range over a period of 1 day, 5 weeks and up to 7 weeks.
The institution's Intellectual Property in course material and structure is a part of the sale.

How long has the business been established?

The business has been established for 31 years having been started by the owner in 1994.

How does the business operate on a daily basis?

The manager opens and closes and is involved on a daily basis. There are 4 x Trainers/Facilitators in the business and the Manager also trains/facilitates. Social media marketing has been very successful in attracting students as well as word-of-mouth of current students to their peer group.

How are the clients attracted to the business?

Facebook and WhatsApp are used extensively and successfully with a database of over 60 000.

Does the business have any contract work?

20% of the business coming in is via companies upskilling their staff - they sign up for a course which the company invariably pays for. This could be a big growth area - to market into companies for short courses for their staff.

What are the seasonal trends?

Very busy from about 25th January to beginning of April. April and May quieter and then picks up steadily throughout the year. They are closed in December.

Is the business VAT Registered?

Yes, the business is VAT registered.

What VAT documentation is on file?

Normal VAT returns and reconciliations are on file.

What percentage of the business is cash/credit?

EFT and Cards make up the majority of payments as well as some cash.

What is the age analysis of the debtors book?

The students have to 33% of the cost of a course up front in the case of a 5 week course and pay the balance.
In the case of a 7 week course 25% needs to be paid upfront.
The balance of the amounts outstanding are paid over the duration of the course and needs to be paid in full by the end of the course or no graduation from the course. This system appears to work well.

How could the profitability of the business be improved?

New marketing ideas will bring in more students. A bit of new energy will make a big difference.

What is the total staff complement?

7 x Staff in total:
1 x Manager.
4 x Trainers/Facilitators.
1 x Cleaner.
1 x Security Guard.

Do any have management potential?

There is a manager in place.

How involved is the Owner in running the business?

Day-to-day - 10%.
Strategically - 80%.

When does the current lease end?

The premises belong to the owner of the business. The premises are also for sale. The business is easily movable to a new, smaller and more cost-effective site if necessary if a sale of the property does take place.

What are the trading hours?

Monday to Saturday: 8.00 am to 5.00 pm.

What are the main assets of the business?

33 X Laptops
7 x Tower computers
Various Lecture Room Desks and chairs
Office Desks and Chairs
Office Equipment
Telephone System
Cell Phones

How have they been valued ?

Depreciated cost.

Which assets are on lease/HP and with whom?

No - all fully paid for.

Are they presently insured?

Yes, the business is comprehensively insured.

Strengths?

Well-established history and name. Knowledge of Staff. Over 30 years in business. Companies generally want to employ these students over others. Lots of repeat business - new courses, upskilling etc. The course structures work very well. The Intellectual Property (IP) of the course content and structure.