YOU WON'T FIND BETTER - SOLID DEMAND OVER PROTECTION OF ASSETS
Stock Included: — Stock Value: —
Years Est: — Gross Revenue: —
There’s no doubt about it you’re just in time for the next major expansion phase. As a service provider to one of WA's leading Industries, this business has long standing and loyal customer base which continues to provide an essential products and service to builders and home owners in WA. The product range is so widely in demand, Linked to one of the fastest growing industries in the country SECURITY and LIKE PRODUCTS. üTry and find another business - High Gross margin of 65%. üTry and find another business -where sales are linked to essential products Security and Like Products. Sales have increased by 40% in four years. üTry and find another business – where you will be handed $400,000 of confirmed orders. üTry and find another business – that can operate on only $40,000 stock üTry and find another business – 80% of payments are recouped within 30 days including upfront deposits makes which makes this business secure and cash flow positive in a short time. üTry and find another business - that only needs minor working capital üTry and find another business - that is more diversified, thus lowering risk The truth is; you will most likely never find another business that can beat all the features offered in this long established, outstanding business. Demand for what the business provides ; make it like no other business. Consumers and businesses alike see the products as a “MUST HAVE”, with Security and Like Products being top of the list, no matter what is happening overseas economically.And yes, market leader and long standing reputation makes this business a really tough company to take on in a market where integrity and reliability are everything. High margins 65% and a recession-proof client base, means this solid long established business has great potential to expand as the population grows more are aware of the importance of SECRITY AND LIKE PRODUCTS from builders to home owners The business is relatively easy to runwith exclusive and reliable suppliers make this a simple business to manage. Advertising has been minimal, and increased sales are to be expected if a marketing and sales plan were implemented this would likely have a large impact on sales revenues. KEY FEATURES • High Gross Profit Margin Self-propelled sales and a high gross profit margin is indicative of a business which is both solid and in a strong growth phase of development. The business Gross Profit sits at an impressive 65% - the kind of profitability most owners dream off. • Essential products: The growing Western Australian population will always require these essential products. Since Security and Like Products is such a big part of modern living there will always be a market for these essential products. With the growth in home entertainment most homes in the future are going to have home theatres either with big screen TV's or projectors they will require sound to match. This business is the ONE Stop Shop and can provide all these systems under the one roof. • Low Risk – Great Business Model The business low overheads, automatic growth and high level of pre-booked work is the perfect model of business profitability. The business holds forward orders that regularly total $400-500k at any given time offering excellent security for a new owner moving forward. • Widespread Growing Repeat Client Base Attracting builders, homeowners and developers, the owners of the business have actively sort to ensure the client base is diversified to limit over-exposure to any single client and generate consistent income all-year round. 50% of clients deal direct and no single customer is larger than 15%, providing security for any new buyer. . • Low Risk – Key Customer Retention Features The business has accumulated a large volume of customer’s through its excellent work ethics, good communication, follow up procedures and friendly helpful staff. • Preferred Supplier Status The business is in the enviable position of being a preferred supplier to several major customers. This means several of these customers may tender on the same project and regardless of who wins, the business usually gets the work. • Long established The business has been servicing the Perth market for some 29 years and during that time the demand for its products and services has exceeded the business’s capacity to produce. With very little sales or marketing effort, turnover (40% in four years) has continued to grow year on year, purely through reputation and word of mouth. There is still plenty of room to further grow the business through advertising and offering packages to builders. • Low Staff Currently, the business employs only 1.5 full time owners and 2 part-time staff but the part time position could be joined to make a full time position if required. It is purely part-time to accommodate one of the owner’s personal commitments. Both part timers do administration work so the jobs cross over. • No Reliance On Sales Staff The vast majority of sales are simply self-propelled which means that the current owner does not have the overhead of running a sales force. However it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly be increased if need be. • High Level Of Client Loyalty The business generates a significant volume of repeat orders from customers due to the professionalism and after sales follow up. • Barriers To Market Entry Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would face the following issues…: a. Difficulty in establishing a network of builders b. Obtaining preferred supplier status with clients and relationships with leading brand manufacturers c. Building a reputation that takes almost three decades of successful trading to produce • Simple To Operate – No Experience Necessary The business is relatively easy to run with all procedures and systems in place and well documented. The vendor is willing to assist with training to ensure the new owner makes the most of this standout opportunity and there are a variety of staffing arrangements possible depending on what direction the new owner wishes to take the business. • Low Advertising Compared to most businesses the advertising requirements are very low. At the moment the business only advertises with Sensis online, through its website and its display at The Home Base Expo. Word of mouth and referral from repeat customers have been the business’ main source of marketing. • Owner Can Take Holidays Organising staff to take over during holidays is easy. Generally the business closes down every Christmas for at least 2 weeks, however last year it closed for 3 weeks. . • Low Trading Hours The opening hours are 9.00 am - 5.00pm Monday to Friday and only on Saturdays if meetings with clients have been scheduled. • Long Term Historical Growth The business growth has been entirely based on performance – the better service it provides the more work it wins. This means its growth generally isn’t dependent on external factors over which it has no control. • Minor Overheads Given the size of the annual turnover, overheads are relatively small. • Low Stock Holding of just $40,000 This amount of stock is considered minimal. Most other businesses will carry much higher values which require higher working capital requirements. • Profits Can Be Proven The business has a complete set of verified accounts which clearly show its profitability.
Yes Business Operated from Home:
Yes Broker/Agent ID Number:
PK5253 Sold Status:
Sold Status Changed:
2016-01-07 Priority Category:
8 Priority Region:
Perth, WA Priority Expires:
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