THIS TYPE OF BUSINESS DOES NOT COME ONTO THE MARKET OFTEN!

Can you raise +- 2k? 

This business can practically run itself while you enjoy the beach. Melkbosstrand has the most beautiful beaches and good fishing, take a lovely walk or go fishing while your business continues running throughout the day. 

I want to sell the business at a price that will allow a buyer to repay the sales price in 5 years while drawing a reasonable owner’s salary. According to my calculations this would indicate a sales price of +- R1,6 million plus current stock at cost +- R400 000 stock to be valued at time of sale.

I suggest the following will even improve turnover more: 1) Sales to restaurants Pubs and hotels 2) deliveries 3) supplying the shebeen trade in a nearby industrial town 4) actively promoting the store at the nearby golf estate 5) upgraded signage and merchandising. I have not been able to get to all these ideas of boosting the business. 

This business is under promoted and if the above suggestions are implemented offers a singular opportunity for an investor who wishes to mix work with a beach atmosphere.

If you have equity of R2 000 000 you would be able to service the loan and pay yourself a salary for 5 years and then it would be 100% yours with no more debt to bank at which point you would be earning what the loan repayment was + the salary amount for as long as you keep the business!

1. HISTORY / BACKGROUND

This business has been in the possession of the same family who founded it as part of a hotel in 1962 in the coastal town on the Cape West Coast, Melkbosstrand. In the mean time the hotel was closed in 1987 and the premises converted to shops, offices, apartments and retail space all fully letted currently. The name of the business is in Portuguese "mira" meaning "look" and "mar" meaning "sea". The name was made by Mr Jose Domingos De Nobrega when he acquired the old Homestead hotel in 1962 Melkbosstrand. Being of Portuguese decent he probably chose this name because of the proximity and view of the sea, "look sea" it is a pun in English language. The current owner bought it from his father 15 years ago and now feels its time to retire.

The store is located in the business centre of the town and across the road from the beach.

2. PRESENT MARKET

Clientele consists of local residents and holiday visitors. There is one significant competitor in town and a lesser one in a smaller centre 8 kilometers up the coast. Summer holidays are a lot busier than the rest of the year.

I have not put much effort into marketing or promotion by means of signage and merchandising.

The position is close to the beach picnic area and on the main road entering into the town which accesses the beach area. It is also in the heart of the main business area of the town positioned opposite Spur, Ok’s, and Hardware, Tool Hire, Doctors, Estate agents, Attorneys, Chemist, Laundry, hairdressers, Restaurants and many more places where the needs of many different people are catered for. We have a bus terminal as a means of transport and taxis also call here.

3. Stock Control

We have an up to date point of sales system, All figures can be verified with strict stock control in place. 

(I can supply a comprehensive breakdown of turnover per category or brand etc.)

4. ASSETS / INVENTORY / BALANCE SHEET ITEMS

The Austin Wag N Bietjie Safe is a time delayed mechanized safe which is connected to the alarm system valued at R10 000 2^nd hand value. Three POS computer cash registers and a computer master in office are giving cashup total and reading count for accurate cashup's and full Stock control and re-order reports valued at R120 000. The fastnet Pad is a Wireless data communicator for the Credit & Debit card machines valued at R3000. The Service counters and shelf's are in good condition R28 000 2^nd hand value throuout. There are 5 upright Display fridges all in good working condition overing ample space for quick access to cold beverages valued at R25000 2^nd hand value. There is office equipment a fax machine for faxing and receiving orders R1400 2^nd hand value. The advanced computer dedicated Internet remote camera and monitor system can be accessed though the Internet live 24 hours a day from anywhere valued at R 60 000 2^nd hand value. There is a Rapid Cool Wine Chiller that can chill 4 X 750ml bottles at ounce to a ice cold result in just 5 minutes while you checkout valued at R10000 replacement value. The cold room is of good size and accommodates all varieties of SAB and Windhoek beers amongst others with ease valued at R40000 value. There is a Manitowoc ice machine that has been operating for many years without much seasonal adjustment with Stainless steel ice bin with good size capacity valued at R15000 conservable. There are 2 heavy duty trolleys for packer use can handle 6 cases at time in good condition valued at R1500 2^nd hand value. We also have 1 shopping trolleys for the convenience of customers valued at R600 which equates to R600 each in good condition 2^nd hand value. The cordless phone is excluded from the sale. The asset list is on file. Mr Gil Gorguhlu of Zeller Karro Auditors are the accountants.

5. STAFF

Four(4) staff currently work in the store. With a salary of +-R10,000 for a manager and on average +-R2000 for each of the staff the salary bill totals to +-R16000.

6. LEASE

The premises belong to the family of the owner and he would be willing to arrange a 5 year lease with annual escalation of 10%

7. REASON FOR SALE

I wish to scale down as I near retirement I have also become the financial Director of a large company which I wish to focus on.

8. S.W.O.T.

Strengths, Weaknesses, Opportunities & Threats

This store is in a prime position and enjoys a solid customer base and name recognition. The town and surroundings are expanding rapidly. A golf estate with around 800 houses has recently arisen next to the town and more developments close by are completed regularly. Besides the sale of all types of liquor in future you have the opportunity to have different departments for each type of liquor with tasting booths or tables. Possibilities related to liquor are a department for crafted bar counters and accessories a glass sales section, special liquor packaging like 2 and 3 bottle type boxes which could be gift wrapped or gift baskets, Vintage wine collectors department and Speciality funnies liquor labeling department for functions too like weddings could be propositioned. Many other opportunities that have not yet been explored like a Delivery service, Party Service offering glasses to hire Ice filled steel bath sale and return basis, Barmen service, Internet ordering, one could venture into the import and export markets, the point of sale system can accommodate a loyalty program that may easily take over the market. One could supply the number of off consumption licensees namely Koeberg Sports Bar, Melkbos Country Club, Koeberg bowling club, Zoutbos Restaurant, Moods Diner and pool room, Atlantic Beach Golf Estate Club, Seafood Lapa and Pool room restaurant, Big Blue Café and pub, Seaside Blues restaurant, Silver Bay Spur, Café Orca Restaurant, Atlantic Beach Conference Centre, Melkbosskerm restaurant and Club18 etc. You could also offer regular wine tasting and gift service. A year end function service to the vast industrial factory area of Atlantis for staff Christmas parties. You have a licence to sell liquor the opportunities for this controlled industry are endless. The current owner has been very busy with other business on his plate and has not had the time to explore these opportunities.

9. Conclusion

It is in my interest to sell this business at the right price to the right buyer because my family is the landlord of the building and the business needs to be successful to continue being a valued anchor tenant for the building. Complete honesty and open book is promised. You are invited to sit in the store for a day, week or month to monitor the business for complete peace of mind if needed.