Garden Landscaping services business situated coastal town close in Eastern Cape

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Asking Price

R1,355,000

Monthly Profit

R82,854

Asset Value

R 310,000

Stock Value

R 5,000

Yearly Net Profit

R 994,253

Summary

Garden landscaping for new and existing homes, seasonal maintenance, landscape design, lawn treatments, instant lawn, irrigation and garden service contracts. All work is owner supervised and the staff are very well trained and experienced.

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Fully describe the business's activities?

Services include landscaping, horticulture and general garden care.
Garden landscaping for new and existing homes, seasonal maintenance, landscape design, lawn treatments, instant lawns, paving and retainer wooden pole installations

How long has the business been established?

10 Years

How long has the owner had the business?

Since Inception

How does the business operate on a daily basis?

The business comprises of a team of 4 and is overseen by the Owner on a daily basis.

How are the clients attracted to the business?

Strong marketing, brand awareness, word of mouth and positive references from clients.

What Advertising/Marketing is carried out?

Media print – Info Ads (local monthly booklet), Business and Information Guide publication; Business card directory; Personal business cards;
Online media – Website (only local landscaper to have own site).
Facebook page.

Does the business have any contract work?

5 x seasonal maintenance contracts (This is a small % of the overall business)

What competition exists?

There are other similar businesses in the region but each with their own customer base.

What are the seasonal trends?

Ratio is approximately 65% summer and 35% winter.
The quieter months of June, July and August still trade above breakeven.
Business is not significantly affected by seasonality.
As the village is growing, the seasonality is becoming less important.

Is the business VAT Registered?

What percentage of the business is cash/credit?

Predominately paid by EFT with out-standing amounts settled at month end.
Landscaping work requires a 50% deposit and full payment upon completion.
No bad debts have been incurred since inception.

How could the profitability of the business be improved?

Since Covid, the town has grown significantly and many people have relocated here.
There are large retirement village developments and growth in the infrastructure of the town.

What is the total staff complement?

4 Plus Owner

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

1 x landscaper: 10 years’ service.
(Attends to planting, paving, laying of stone, composting and fertilizing, lawn treatments, landscaping, general garden maintenance etc.)
Other 3 x casuals do semi-skilled work

Do any receive special perks or incentives?

Staff are paid performance bonuses at discretion of Owner, dependent upon quality of landscape projects and successful time completion.

Are they on contract?

No staff contracts

How involved is the Owner in running the business?

The Owner is hands on and supervises all work on a daily basis.
Responsibilities include drafting of quotations, administration, monthly accounts, debtors invoicing and creditors, sketch drawings and landscape design and marketing and all general management functions.

When does the current lease end?

Storage garage only on a month to month rental basis. 25 sq meters.
An ideal work from home business.

What are the trading hours?

08-30 to 16-30 Monday to Friday.
Saturdays if and when required to do so.

What is the square meters of the business?

Garage 25 square meters.

What are the main assets of the business?

The main asset is the vehicle which is a 2015 Toyota Hilux with approximately 155,000 km s on the clock. (Valued around R250,000)
Small tools etc
Marketing materials
Website

Are any items not included in the sale?

What is their overall condition?

All equipment in good second hand condition and approximately 3 years old.
Vehicle has a full service history.

How have they been valued ?

Vehicle valued by Toyota and equipment valued by owner.

Are they presently insured?

Yes, insurance is in place.

Strengths?

Solid reputation and strong brand awareness.
Known for high standard of service.
Hands-on management by Owner.
Business enjoys a positive cash flow as deposits are taken for landscaping projects.
There have been no bad debts since inception.

Weaknesses?

There are no perceived weaknesses if the Owner maintains the current standards.

Weaknesses?

There are no perceived weaknesses if the Owner maintains the service levels.

Opportunities?

Growth opportunities as the town develops.
Large scale Retirement Village developments and town infrastructure development.

Threats?

There are no known threats to this business.

Threats?

There are no known threats to this business.

What is the reason for the sale?

The Owner has health issues and feels that it is the appropriate time to hand over the business.

Why is this a good business?

This business is ideal for a person who wishes to relocate to the coast, enjoys small town lifestyle, who is creative and wants to have their own business.
Ideally, a person who has studied garden landscaping / horticulture or botany would be a big advantage,
The business offers a substantial income and is supported by well trained and loyal staff.