Summary

Established 11 years ago. Mostly online with a small showroom for walk-in clients, could be run from home.

Give me more information

Fully describe the business's activities?

The business is an online store that sells wall stickers, wallpaper, and wall murals.
They have a showroom in Johannesburg which is also an office, dispatch, storage, and
a place where clients can, optionally, view/pay for our products – but the vast majority of our
orders are online.

How does the business operate on a daily basis?

Orders: Most orders are placed online, received by email, orders are emailed to relevant
suppliers or to our dispatch. Certain suppliers drop-ship or we collect (close-proximity),
otherwise we pick the stock from our storage. It is then packed with relevant instructions to
be couriered to clients.
Admin: answer emails/whatsapps.
Website: constantly updating or adding new products/stock (if applicable).

What Advertising/Marketing is carried out?

Free organic results and website SEO (score: 92% on Google)
Witth online shopping advertising/PPC to supplement the organic search.

What competition exists?

Other online stores that offer wall stickers and wallpaper.
Larger retailers and hardware stores sell cheap lower quality wallpaper, not our target market.

How could the profitability of the business be improved?

Turnover could be increased by extending product/service offerings, investing in technology/online tools, opening other showrooms in different locations, offer extra services like installation, and marketing internationally.

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

1 employee in Johannesburg plus an owner who works remotely:
She is the Dispatch Manager and Showroom Manager.
A buyer can save on this expense by running the business from home

Do any have management potential?

The Showroom Manager has progressed to a point where she can run the day-to-day activities of the business and she is also able to give in-depth wallpaper advice to clients.

How involved is the Owner in running the business?

The daily activities of the owner are doing any required artwork (average twice/week) – all of which can all be outsourced to a graphic designer.
She also quotes more complicated wall sticker designs.
She also updates/manages the back end of the WordPress website and handles online advertising, but most is automated so she only does it every few weeks.
She submits the accounts to the accountant and makes the payments/manages the bank account.

When does the current lease end?

They have just signed a 1-year lease (ends 31/08/24) - with a clause that the tenant can terminate the lease (no penalties) from 01/09/23, with a 2 calendar months’ notice period.
This business can be run from home, a buyer would need 18m2

What are the trading hours?

Monday – Friday 8am- 4pm.

What are the main assets of the business?

Stock
WordPress Website (replacement value):
1254 Products (each with full SEO/Images)
Intellectual Property and Goodwill:
(184 individual sticker designs, social media accounts, 79 Google Reviews - all 5 stars)
Furniture, Appliances, and Fittings (replacement value)

Strengths?

One of the 1st wall sticker online stores (many repeat customers) so well known and trusted.
Customer Service is excellent: we are the highest-rated large wall sticker/wallpaper online store in South Africa on Google reviews.
Based in Johannesburg, so quick delivery times (even to other cities).
Long-standing supplier relationships.
Over 1250 products on our website (about half are exclusive to us).
Very high-quality products with excellent guarantees.
Once designed, wall stickers can be produced over and over again.

Weaknesses?

The owner works remotely (can be challenging not being in the same city).
Based in an Office Park, rather than a shop.
Small company: less cash flow does hinder new ideas plus staff have to do a multitude of varied duties.
They do not own their machines, so they are dependent on suppliers.

Opportunities?

Extend the range of products offered (the list is endless and many can be “tested” without having to outlay money for stock).
Invest in technology/online tools to improve the user experience.
Open other showrooms in different cities/even in shops.
Offer extra services, like installation.
International market: We have not marketed internationally at all.

Threats?

Not many barriers of entry, so small competitors can enter the market.
Changing tastes in décor means you have to constantly keep your products on trend (although many are timeless).
Large chain stores like Leroy Merlin and Builders Warehouse bringing in cheap products (not the same target market), but clients have had bad experiences (no advice given) with wallpaper and wall stickers (so clients assume all are the same).