Summary

Interested in the world of Health, Wellness and Beauty? A perfectly paired duo one a manufacturer of aromatherapy based products and hand made wellness products and the other a supplier of beauty and wellness products with a range of local and imported equipment, salon and nail products are ready for their next chapter. These labours of love have an excellent name in the industry and offers ample variety and scope for the entrepreneur who enjoys being active and mentally stimulated.

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Fully describe the business's activities?

Supply beauty and wellness products to the wellness, health and beauty industry.
Products include the manufacture of aromatherapy-based heatable wheat products, hand-made wellness products as well as a range of local and imported equipment, salon and nail products.
Supply wholesale to Salons, Spas, Pharmacies, Health Shops, Gift Shops, Physiotherapists, Aestheticians, Beauty Therapists, Cosmetologists and Nail Technicians.
Products are used by clients to perform their treatments as well as to retail to their clients.
Sales are also done via Agents and Distributors based in various centres in South Africa.
Retail sales are done via Takealot, Online store and various retail stockists.
Main focus is national, although have successfully exported to United Arab Emirates, Qatar, Kenya, Botswana, Zambia and Zambia. Required Import/Export permit and documentation in place to fulfil these orders.

How does the business operate on a daily basis?

Wholesale orders are received by email, telephone or WhatsApp.
Retail orders are received via email from online store and Takealot.
Staff makes up the orders, books the courier and despatches to the customers nation-wide.
Staff are responsible to make products for stock, conduct stock counts, and maintain the work area.
The process is efficiently run on a Just in Time basis where minimal stock is held.
A key function of the owners is to ensure adequate supplies of products for re-sale, raw materials, and packaging materials.
Procurement is important to avoid any production or processing delays.
The owners are responsible for marketing and sales, customer relationship management, daily admin, processing of invoices, and overseeing of the operations.

What Advertising/Marketing is carried out?

Sales agent in Johannesburg and one in Durban, and a Distributor in Gqeberha.
Currently looking for an agent in Cape Town and liaising with a possible agent in Botswana.
Advertising is done on WhatsApp, Facebook and Instagram, posting on social media platforms is done regularly.
Distribution of a digital newsletter twice a month promoting products with special offers.
Full database is close to 3000 contacts.
Hosting of open days/training events once or twice a year.

What competition exists?

Market is mainly wholesale for use in the beauty business industry. The employment of high quality processes ensures that products are durable and well suited to vigorous and professional usage.
There are a number of similar products on the market but they are mainly aimed at the retail sector for home use only. These are usually found at flea markets.

How could the profitability of the business be improved?

Integrate both businesses into one thereby introducing cost efficiencies on two sets of books, accounting fees, Sage and Internet licences, bank charges and general office overheads
Optimise staff utilisation
Operate with one manager for both businesses
Make one online shop customised to service both wholesale and retail customers, and integrate total product offering
Increase the sales:
• Appoint an agent in the Western Cape
• Re-engage with the interested Distributor in United Arab Emirates
• Offer additional product brands to sell to existing/new customers

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

Manager/Owners – joined Nov 2011/May 2012
Functions:
Marketing, Sales, Procurement, Financials, Operations, Human Resources, Administration, Customer and Supplier Management
Production Assistant 1 – joined Aug 2019 (works 2 days a week)
Production Assistant 2 – joined May 2024 full time, prior to this worked on a casual basis from Aug 2023
Same Functions for both:
Process orders
Package and label products
Despatch orders
Answer the phone if manager is not available
Assist any customers collecting their orders
Conduct weekly stock counts
Clean the office and factory area

How involved is the Owner in running the business?

Fully involved

When does the current lease end?

Operating from Owner’s homes

What are the trading hours?

Monday - Friday 08:00 - 16:30
This can be amended as there are no walk-in clients

What are the main assets of the business?

Sewing machines, work tables, steel shelving, display cabinets, office furniture and computers.
Stock and raw materials.
Websites (these can be exported for the new owner).
Domain names (these will be transferred to the new owner)

Strengths?

Strong brand awareness
Discounted reseller pricing from main supplier
Quality known brand
Long standing supply agreement with main Johannesburg Supplier
Long standing KwaZulu-Natal Distributor for national salon brand
Excellent customer relationships
Long standing Distributor in Gqeberha
Many top spas as long-standing customers
Top quality luxury products
Products are customisable for corporate branding
Successfully exported to the following countries: Kenya, Qatar, UAE, Namibia, Botswana and Zambia
Good repeat business
Outstanding customer service
Excellent reputation

Weaknesses?

Business needs more focussed sales
Needs an agent/rep in the Western Cape

Opportunities?

Integrate both businesses together to get greater cost savings and utilise staffing more optimally
Operate with one manager for both businesses
Grow export market
Expand into Hotel, Game Lodge and Spa Groups
Launch additional products into the loyal customer base
Partner with Spa Consultant companies to promote products
Sell to Pharmacy Groups
More online focus eg. Takealot, Amazon, own websites and customer retail online stores
Open a walk-in shop to capture retail sales at a higher margin and increase visibility/convenience to wholesale beauty industry
Approach Beauty Schools to use the products in their training and introduce brands to the students
Targeted sales to spa and pharmacy groups
In-source sewing
Exhibit at beauty trade fairs nationally and internationally