Sales & Profit screaming over last year.
Stock Included: —
Stock Value: —
Years Est: 38
Gross Revenue: 211,000 (plus)
rate increases - drive profit
further. Australia’s freight volumes are projected to increase by 80% between
2010 and 2030 and to triple by 2050 – and that
doesn’t take account of recent predictions that WA is set to become the world’s
biggest producer of lithium and global capital of batteries for electric cars.
This business is ideally positioned to capitalise on these projected increases.
Currently a small and highly efficient business with minimal overheads, and
Long established - 35
Essential service - it’s
Low staff of just
Simple to operate
lucrative and growing route for the past 38 years, the business is ideally
positioned to capitalise on projected increases. Currently a small and highly
efficient business with minimal overheads, it could build on its longstanding
reputation for reliably servicing its 90-odd clients, using them as a reference
and referral source to capture a much larger base, adding vehicles and staff
only when contracted volumes justified it and thus minimising any risk.
Currently this is a five-day-a-week service with set collection and
delivery times, (USING CASUAL STAFF AN OWNER CAN POTENTIALY JUST WORK A FEW
DAYS A WEEK) offering a guaranteed same day service to the southern metro
region. Utilising a van and a medium sized truck, all loads are covered and the
business is the only one operating this route that has a tail lift for heavy
loads, making deliveries easier. Many of the business’s customers have been in
place for over 20 years which demonstrates a business which is both needed and
one that has exceptional customer satisfaction.
On the other side of the ledger, the business operating costs are exceptionally
low. There is no stock other than fuel, just one staff member, and
very little advertising. This, plus the fact 80% of customers are on seven day accounts, means the
business enjoys excellent cashflow and requires minimal working capital. With a
large percentage of the possible purchase price representing by Plant and
Equipment, this is a very low risk option with immense expansion potential.
The total active client base numbers approximately 70, around 90 percent of
which are repeat order clients and no one customer represents a large
proportion of the business.
The business has built up a substantial client list over its establishment
period. It has little reliance on any one customer making the business
less susceptible to major downturns arising from the loss of clients.
The business is in the fortunate position where it needs no aggressive
marketing plan or sales force to generates sales. Instead the business relies
on word of mouth referrals from satisfied customers to maintain its market
- Historical ongoing growth
- no matter what the state of the economy
continued to record increases in sales and Gross Profits from inception and on
this basis the owner sees no reason why this trend will not continue,
especially given the fact that Australia’s increasing population is universally
projected to drive increased demand for freight transportation through to at
of all kinds will continue to require transportation from ports and airports to
distribution centres and thence to retailers and other users, including those
in regional areas.
- Widespread growing repeat
growing list of customers currently numbers approximately 70, with no one
customer representing more than approximately 15 percent of the annual sales.
This has been a deliberate policy employed by the vendor to make the business
less susceptible to major sales downturns resulting from a loss in a major
customer. This is a key feature not often found in businesses of this calibre
schedule with enclosed secure loads and a two-tonne tail lifting service.
- Long established – 38 years
business has been servicing the Perth market for some 35 years and during most
of that time the demand for its services has exceeded the business’s capacity.
With very little sales or marketing effort turnover has continued to grow year
on year, purely through reputation and word of mouth.
keeps overheads to a minimum. And the industry being as large as it is, there
has never been a problem to source new staff when required.
- No reliance on sales staff
to generate sales
majority of sales are simply self-propelled which means that the current owner
does not have to spend time canvassing for clients or using company funds as
advertising expenditure. However, this also offers a new owner a readily
accessible means by which sales could be increased if desired
businesses competitors are also long-established, so the company has always
operated against the present level of opposition. In these market conditions,
the business can achieve year-in year-out sales increases so the presence of
competitors effectively has no effect on its turnover or profitability.
- Immediate potential to
expand the business
establishing further set runs into other regions or expand the fleet offering a
more diverse payload.
from the significant capital requirements to establish a business such as this,
a newcomer to the market would face competing against a well-recognised and
longstanding provider with strong branding, already serving a large and
well-established client base
business does virtually no advertising to generate its current levels of sales
and profits. However, should a new owner wish to grow the business further, a
proactive sales and marketing effort would almost certainly result in growth.
- Simple to operate – minimal
experience is necessary
The current owner had no industry
experience prior to purchasing the business and has always employed a driver
for the heavy vehicles, which leaves the current owner with minimal work in the
current owner has been able to take holidays as and when needed, leaving the
business in the hands of the current drivers.
The business operates Monday to
Friday only and can be run under management.
business can be run from a home office with space available on site to park the
truck and van overnight.
- Long term historical growth
business growth has been entirely based on performance – the better service it
provides the more work it wins. This means its growth isn’t dependent on
external factors over which it has no control.
size of the annual turnover, overheads are relatively small.
- No significant stock holding
business only holds small stocks of fuel. Most other businesses will carry much
higher values, which will demand higher working capital requirements and
unnecessary money tied up during the term of ownership.
This is a
high cashflow business with some 5 percent of debtors paying COD with most of
the balance of customers paying on seven-day accounts. This provides the
business with an excellent cash flow, which minimises working capital. There is
also limited shift in quarterly sales which powers the business along with no
extended seasonal down turns.
- High asset mix in purchase
A good percentage of the purchase price is made up of plant and
equipment. Compared to low asset businesses, this business reflects a lower
risk and potentially delivers a higher bottom line profit through being able to
minimise its tax through claiming depreciation as a non-cash expenditure item
on its long-life equipment.
FOR THOSE WHO DON’T WANT TO BUY RISK
...DEMONSTRATED EXCELLERATING – Sales and profit growth.
…SOLID - HISTORY – 35 Years
...OUTSTANDINGLY - EASY TO OPERATE
...RARE OPPORTUNATY - Business - You’ll Be Convinced When You Read Our 70 Page
Contact us today to receive a detailed business profile – the first step to
your securing this exciting opportunity.
ALL OFFERS PRESENTED TO THE OWNER BY 5.00PM THE
11/05/2018 UNLESS SOLD PRIOR (offers subject to
Number of Employees:
Property Title Included:
Business Operated from Home:
Broker/Agent ID Number: