Fully describe the business's activities?
The main focus of this business is in the supply of top of the range Test and Measurement Equipment, Cabling, Wires and accessories. Their products are mainly sourced from renowned international companies in USA and Europe. They supply reliable and quality troubleshooting equipment, which limit ongoing and unnecessary expenses associated with âquick fixâ products. This business is a leading supplier of âMade in Germanyâ network cabling up to fire rated cable. They supply certified copper, coax and fibre optic cable and all accessories. Besides that, they cater for the power industry and utilities, by supplying any power cable and accessory. In that range they have A-Z cabling and wire according to European standards for every industrial branch.
How long has the business been established?
This business was established in 2017.
How does the business operate on a daily basis?
This is an owner run business of which operates from the owners home as follows: - starts at 07:30 - attends to e-mails - attends to outstanding quotes - opens the business at 08:00 - runs through new orders and orders items at various suppliers - follows up outstanding orders and deliveries - runs through Web opportunities to attend to new quotes - receives goods delivered by various couriers - books in received goods and create invoices on Xero (online accounting system) - prepares booked in goods ready for collection by customers or couriers or delivery - follows up outstanding payments by customers - makes supplier payments - plans customer visits - attends to phone calls
How are the clients attracted to the business?
The clients are attracted to the business through its website, occasional mail shots through Mailchimp linked to Facebook, Twitter and LinkedIn, word of mouth and other social media. They attend yearly shows like the mine show. The owner travels country wide to see existing and prospective customers. These trips are arranged and planed beforehand and suppliers join the owner and present their products by bringing along samples.
What Advertising/Marketing is carried out?
Advertising is carried out through the website, occasional mail shots through Mailchimp linked to Facebook, Twitter and LinkedIn, Facebook, LinkedIn and other social media. The business advertises further by attending annual shows. They occasionally sponsor sports events and industry related events with corporate branded items.
Does the business have any contract work?
This is a wholesale and retail business, it does not have contract work.
What competition exists?
Competitive threats today come from large corporate chains, direct international supplier imports, cheap and substandard replacement products, increasing transport costs. This business's strategy for meeting these threats is to focus in the industrial market segment and establish its position by providing greater value to the customers through free training, seminars and advice on perfect solutions. In all comparisons it offers service, good pricing, quality, professional advice and top products which are superior to competitive businesses. They give their customers the service and selection of products based on their research, and first-hand experience in competing companies, surveys and supplier leads. The degree of competition depends on the product range.
What are the seasonal trends?
There are only neglectable seasonal trends in this business. December to January are the quiet months. Major income fluctuations come from various projects and tenders through the year.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
Yes, all VAT & Import VAT documentation is available on file to approved buyers.
Are there up-to-date Management Accounts available?
Yes, there are up to date Management Accounts.
What Balance Sheet and Income Statements are available?
Balance Sheets and Income statements are available for the last 3 years.
What percentage of the business is cash/credit?
80% of the business is credit, over 30 days and the remainder is cash. All mines, large corporates, factories, utilities and SOEâs expect 30-day accounts which this business allows and in turn it is registered on all its clients vendor lists.
How could the profitability of the business be improved?
- Expand its market share - Employ further sales personnel (internal/external) - Manage costs - Buy effectively - Develop deeper understanding of customer base - Use CRM more extensively - Maximize Cashflow
What is the total staff complement?
There is only 1 employee employed
How involved is the Owner in running the business?
The owner runs the business on his own. Other tasks are outsourced to professionals in logistics, accounting services and web design.
When does the current lease end?
The owner runs the business from his home, however this business can run from a retail shop and ideally only needs 80 - 100mÂ² office and storage space.
What are the trading hours?
Monday to Friday 08h00 to 13h00; 14h00 to 17h00
Do you require a licence?
No, the standard annual municipality fitness certificate is all that is needed for this business.
What are the main assets of the business?
There are no assets for sale in this business other than the average stock holding.
- very flexible hours - loyal customers - unique brands and original products - low but market related prices - only business in the Namibian market selling the whole range of Test & Measurement equipment, cable, wire and accessories - sole distributorships of certain products - strong customer and supplier relationships (customer service and fast delivery) - current customer base reliable source of financial growth - selling cable and accessories for big projects and tenders - offers a maintenance service with instruments sold (repair and calibration) - steady growing business and growing customer base
- low profits - high turnover rates - often losing sales to cheap Chinese imports - not enough staff
- Huge growth in ICT, Fibre Optic, instrumentation and renewable energy market - ROE and countries economic situation stabilizing - Huge growth opportunities in the mining industry - New technologies like FTTx, ICT development, Internet of Things (IoT), WiFi and Bluetooth evolves continuously
- High and decreasing ROE to the Rand - Rise in copper price index (commodities) - Higher pricing for better quality products
What is the reason for the sale?
The owner is immigrating.
Why is this a good business?
This business has established itself in the Namibian market in only three years and has a solid and growing customer base in ICT, mining, telecommunications, electrical and engineering sectors. There is huge growth potential in ICT, Fibre Optic, instrumentation and renewable energy markets with continuous changing evolutions. Market leader in many aspects and products. Many credit customers and on vendor list of many big companies. This business is a Member of CIF (Construction Industry Federation) which is mandatory for certain supply awards. one can run this business from home.
What is the price plus stock and the profit?
This business is selling for N$705,000.00 plus stock of N$ 250,000.00. This business makes an annual net profit before tax of N$ 524,305.00.