Summary

This business has a strong website with on-line holiday homes viewing and rental facilities. They have a base of properties that they manage for holiday rentals and also manage the servicing too. The homes range in size and status and therefore rental costs will vary from home to home. The servicing and maintenance of the homes contribute to the profitability. They receive regular requests to list new properties and the business shows ongoing growth and with the increased rental income the servicing services also increase in turnover. The Seller regrettably wishes to relinquish the business for personal reasons.

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How does the business operate on a daily basis?

The Owner handles all of the general management functions, supported by a manager and the cleaning team.
A manager will not be required if it were a husband and wife team handling the business.
There are two business streams, namely the rental bookings which earn a commission with very low related costs, and also the servicing of the holiday accommodation with the related expenses.

What Advertising/Marketing is carried out?

The Website and on-line facilities are an extremely important form of advertising and marketing to attract visitors to the rental homes

What competition exists?

There are other competitors in this space however this business is known as the "Go To" business for those wishing to rent out their homes, as they offer outstanding reliability and service levels in this very lucrative area..

How could the profitability of the business be improved?

The Owner has been working with a manager and oversees a lot of the check-ins herself.
If it were a husband and wife team it would be a lot easier and there would be financial savings too

How involved is the Owner in running the business?

Full time on a daily basis, 7 days per week if and when required.
However, being Owner managed, this allows free time whenever the Owner chooses and does permit a fair amount of free time between rental check ins and check outs..

When does the current lease end?

An advantage is that this business can be run from home as no premises are required.

What are the trading hours?

As and when required!

What are the main assets of the business?

Volkswagen Caddy motor vehicle
Cleaning equipment
Cell phone/sim card
A batch of homes that have generated the indicated turnover and profit.

Strengths?

Excellent well followed high visibility website that is used for bookings of the holiday homes.
Well structured management support in place to facilitate efficacy of bookings etc.
Known for their quality of service and commitment by the home owners whom they represent they have regular new appointments.
Ensuring that all guests are correctly met upon arrival; that deposit refunds etc are paid back swiftly and that the Home Owner is kept fully informed of the visitors experience.
An experienced and very capable manager is in place to oversee and ensure servicing and maintenance are of a high standard and staff are well supervised.
This takes a considerable pressure off the Owner who manages the bookings and finances, web site etc.

Weaknesses?

Hard work, can be required to meet and install many visitors on the same day and somebody to be present at time of departure.
(The business will thrive on a high energy and meticulous Owner especially a husband and wife team)
There is strong competition so high service levels at all times are required.

Opportunities?

The current Owner has other interests too and has not been able to fully exploit the potential of this business due to health set backs..
A well structured team especially if a couple, can increase their base considerably and thereby increase the profitability, without significant incremental expenses.
The current Owner is regularly offered more homes to rent out which will ensure growth for a well managed business. (3 new ones added in last month or so)

Threats?

The only threat to the business is that an Owner could require somebody to assist if they or the manager are incapacitated at any time.
The business should register for Vat in the future.

What is the reason for the sale?

The Owner is young and has started and managed this business very successfully for the past 12 years, and with regular and sustainable growth.
Currently she has experienced serious health issues and feels that she would like to travel and explore new opportunities while still young enough to do so and once over the current setback.