Garden & Landscaping Service to High Net Worth Families. Easy to Run. Minimal Owner Input.

1366

View photo

Asking Price

R875,000

Monthly Profit

R38,083

Asset Value

R 440,598

Stock Value

R 0

Yearly Net Profit

R 456,995

Summary

Northern Suburbs. Garden and Advisory Service to high net worth inividuals/families living in large executive homes with very large gardens in the Northern Suburbs of Johannesburg. Generally recession-proof!

Give me more information

Fully describe the business's activities?

Upmarket Garden and Advisory Service to high net worth families in the northern suburbs of Johannesburg. Services include garden services, landscaping, planting advice and purchasing of plants etc for clients. Clients serviced generally have large executive gardens with very large stands. The business also has corporate office parks and residential complexes as clients.

How long has the business been established?

The business was established in 1984. 42 years.

How long has the owner had the business?

The owner purchased the business in 2021.

How does the business operate on a daily basis?

The staff includes a senior Team Leader who ensures all staff are allocated to the daily schedule. He also acts as driver to the sites.

How are the clients attracted to the business?

Mainly word-of-mouth and some on advertising on FaceBook. This is an area which can greatly be improved upon to attract more business - other social media etc.

Does the business have any contract work?

The business has clients which are serviced on a weekly, fortnightly and monthly cycles.

Is the business VAT Registered?

The business is not VAT registered.

Are there up-to-date Management Accounts available?

Yes, these are available to qualified interested parties.

What Balance Sheet and Income Statements are available?

February 2025 are all available.

What percentage of the business is cash/credit?

Clients pay by EFT.

What is the age analysis of the debtors book?

Most pay within 7 days of month-end.

How could the profitability of the business be improved?

Much more marketing - especially on the social media side - will result in easily increasing the revenue. There is still a bit of capacity but an extra team will make it even better and more profitable with more clients on board.

What is the total staff complement?

There are 6 staff members plus 3 temps = 9 staff.

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

There is the Team Leader who is also a Driver and all the other staff work as labourers on the jobs.

Are they on contract?

The full-time staff all have letters of appointment.

Do any have management potential?

The Team Leader is very competent and knowledgeable and interacts with clients. The staff generally are very knowledgeable.

How involved is the Owner in running the business?

About 50% of the owners time is spent on and in the business due to distance.

When does the current lease end?

The business rents a storage unit to store equipment and the one vehicle.

Is there an option of renewal & what period?

Yes there is an option to renew. It should be a simple process.

What is the annual escalation %?

Approximately 7% per annum.

What are the trading hours?

Monday to Friday: 8.00 am to 5.00 pm.

What is the square meters of the business?

About the size of one-and-a-half garages.

Is a copy of the lease available?

Yes, the lease is available.

Do you require a licence?

No licence is required to operate this business.

What are the main assets of the business?

Gardening Equipment such as lawnmowers, bush cutters, chain saws and normal smaller garden tools. 2 x Branded VW Transporters.

What is their overall condition?

Very good. Maintained.

Which assets are on lease/HP and with whom?

Both the VW Transporters are on HP.

What are their settlement amounts?

1 x R100 000 and the other at R200 000.

Will Seller settle or Buyer to take over?

Buyer will take over - essential for the business.

Are copies of agreements available?

Yes, these are available.

Are they presently insured?

The business is comprehensively insured.

Strengths?

Longevity. Good Clients. Easy to control. Scalable to a larger business.

Weaknesses?

The owner is based a far distance from the business and it is felt that this is not conducive to growth. Marketing on social media needs to be improved and this can be done easily.

Opportunities?

A greater push towards Corporate Clients and also Residential Complexes. i.e. Growing the pure maintenance book.

Threats?

None really. The business operates currently with high-end clients. Some can pay from R1 500 to R11 000 per month depending what needs to be done. This is not a "mow-and-go" business but the "mow-and-go"" can be a division which will accelerate growth.

What is the reason for the sale?

The owner is based some distance from where they live and it is felt that that the business can do better with an owner close by and working on the business.

Why is this a good business?

High-end clients. Bad economic times do not appear to be an issue for these clients. Nice scalability with an extra team. A new added division concentrating on the pure "mow-and-go" side of this business will add revenue exponentially.