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For Buyers Who Don’t Want To Buy Risk

Business for Sale
South West Region WA

GUARANTEED SALES… A Business So Safe – You Could Bet Your Life On It! YOU WON’T WANT TO MISS THIS! SIMPLISTIC! Semi Production Line Process - Easy 3 Stage …MANUFACTURING PROCESS

Price $1,120,000 + SAV

For Buyers Who Don’t Want to Buy Risk

Stock Included:
Stock Value: 180,000
Years Est: 14
Gross Revenue:
GUARANTEED TO IMPRESS FASTIDIOUS BUYER

• PROFIT: Current industry outlook Is expanding.
• YEAR-TO-DATE SALES: Onward-upward trend.
• COVID19 ANNUAL SALES PERFORMANCE: 2019 versus 2020 = sales growth up 24%
• MANUFACTURE: Easy assembly Documented process.
• ESSENTIAL SECURITY PRODUCTS: – Without question!
• FUTURE LOCKED IN – FORWARD ORDERS TOTAL $600,000: – Makes It hard to go wrong
• LOW RISK: Vendor guarantee for 2 years makes this low risk business like no other.
• REASON FOR SALE: Retirement.
• LOW STAFF: Low full-time staff of only five,
• HIGH GROSS PROFIT MARGIN OF 58%: Such high margins are usually only found in low competition businesses.
• SOLID CASH FLOW = LOW WORKING CAPITAL REQUIREMENT: A high mix of cash debtors minimises the need for large amounts of working capital.
• A 14-YEAR-OLD STRONG BUSINESS: Proven to Grow in Recessions.
• AUTOMATIC SALES: There’s no need for salesmen or a website.
Most people could only dream of owning a business for which there is a far greater demand than there is supply. Not to mention one which is clean, simple to operate and comes with a two-year sales vendor sales guarantee.

There are also very few industries which can be seen as secure. But those supplying the necessities of life – the things that aren’t discretionary spending, only come to the market once in a blue moon.

Even better, if that business happens to be situated in a fast-growing region of WA’s South West with a long history of sustainable automatic population growth, it would be reasonable to expect sales profits will continue to grow despite poor economic times.

RUN UNDER FULL MANAGEMENT…
OR – MANAGE THE BUSINESS YOURSELF
THE CHOICE IS YOURS!
As previously mentioned, this business is situated in the midst of the thriving South West just a short drive from Perth. It’s the ideal investment for someone wanting a relaxed lifestyle by either running the operations under management or taking over the management duties to accelerate the growth even faster. Whatever your choice, one thing is for sure; you will have a thriving business in one of the most sought-after locations in the state, together with solid returns from a growing business.

OWNER MANAGED NET PROFIT = $488,968
Less Managers Wage Allowance : $100,000
UNDERMANAGEMENT NET PROFIT = $388,968
Note – Owner only works a 32-hour week

Despite the scope of the business and the large profit it generates, it requires little input from the owner and even better, it does not need to employ a dedicated sale person to sustain its revenue, as most orders are emailed via the business’s extremely long established client base.

Because the manufacturing process is regarded as assembly, the low number of staff take care of the day-to-day assembly line production process, which allows the owner/manager to take extended holidays when required. That makes this business not only a rare entry point into a fast-growing industry but also one which is suited to virtually any buyer with basic business acumen.

This Business Is So Strong…
… It Can Actually Buy Itself!
Hard to believe, but it’s true…
…For example – Finance and equity approved Buyers could potentially borrow the full asking price. Let’s assume your target is to pay off the full price loan, entirely out of the business’s profit in 10 years. The example in the attachment list on the top right of the screen reflects a potential large surplus profit after deducting the annual principal and interest loan repayments. Disclaimer: As each person's personal loan requirements will be different, you should only use the parameters below as a guide before speaking to your own financier for an accurate quote.

This Business has Everything Right…
…Right Location, Right Products, Right Easy Business Model

The fact the business has a fully capable modern manufacturing plant on stand-alone premises and carries an excellent range of stock material, puts the business at the forefront of the industry in terms of, speed of order turnaround times – something highly valued by this business’s customers, who heavily depend on its orders being manufactured in a timely manner.

The business is also in the fortunate position of needing to employ a low staff list of only 5.5 full-time manufacturing staff. With a stable and growing market, a record of exceptional growth and a cost-effective structure – low staff, low stock levels. This is a business with significant strength and potential to double the existing net profit without investing large sums of money.

CUSTOMERS
Unlike many other manufacturers and wholesalers, the company supplies a large, long-established, repeat order client base, with no one customer representing a large percentage of the annual sales.

No Geographical Restrictive Boundaries…
…Provides the New Owner with Unlimited Growth Possibilities

While supplying primarily to the southwest (98 percent of sales), the business services customers as far south as Augusta with some penetration into the Perth metropolitan and hills areas. These non- exploited markets are an obvious area for a new owner who wished to expand sales rapidly. A new owner could even establish a second location, perhaps opening an office in Mandurah or even the Perth metropolitan area.

TOTAL SALES TRACTION…
..NO SLIPPERY SLOPE HERE!
Here’s what you can expect in your first year’s ownership
with this outstanding, low risk business…

VENDOR GUARANTEED SALES - MINIMISED RISK AND EXPOSURE. The owner is so sure your first two years sales, in the prevailing economic conditions, will be no less than the current owners sales reported on the 2020 profit and loss. He is willing to put his money where his mouth is by setting aside the sum of $400,000 from the total purchase price. Subject to the terms and conditions of a special condition, referred to in the contract of sale, the withheld sum of $400,000 will only be paid to the owner if the Buyer achieves an equivalent 2020 sales total for two years post settlement. Terms and conditions apply to the guarantee which are referred in our 100-page business report.

• SELF PROPELLED SALES - WITHOUT A LARGE ADVERTISING BUDGET - The conservative owners management, (remember he is at retirement age) has been to allow the business to coast rather than aggressively pursuing the market, so its growth over the years is testament to the companies unrivalled reputation as a reliable, quality manufacturer. However, that also suggests that if the new owner were to implement a marketing plan, then sales and profit has the potential to dramatically increase.

• LOCKED IN FORWARD ORDER SALES - And of course, let’s not forget about the locked in $500,000 + forward order sales ledger. This means you will have an instant flow of revenue from day one in the business.

LEADER IN ITS CLASS
It is the owners’ belief that there are no direct competitors to this company’s quality, service or product range. This is proven by its loyal customer base and consistent level of word-of-mouth recommendations that continue to grow the profit.


KEY LOW RISK – LIFESTYLE FEATURES

FUTURE LOOKS UPBEAT!
Self-propelled sales and a high Gross Profit margin of 58% is indicative of a business which is both solid and in a strong growth phase. As this business manufactures essential security products to the growing South West population and beyond, it would be reasonable to expect the demand for this business’s products will be even stronger post-settlement.

NO COVID-19 SALES DOWNTURN - BUSINESS HAS INCREASED SALES THROUGH COVID19. Comparative sales evidence shows this business is COVID-19 stress proof - sales for the April to March quarter for 2019 were $524,570 Versus $618,237 for the corresponding COVID-19 quarter in 2020.

WIDESPREAD GROWING REPEAT CLIENT BASE
As previously mentioned, the business has no single customer representing a large percentage of annual sales. Unlike most other businesses, this has been a deliberate policy employed by the owner to make the business less susceptible to major sales downturns, resulting from a loss of a single major customer. This is a key feature not often found in most other businesses of this calibre.

LONG ESTABLISHED –14 YEARS
The business has been servicing the southwest market for some 14 years. With very little sales or marketing effort, turnover has increased 24% for the year end 2020. More importantly – unlike most other businesses, this company has proven it can profit in the toughest economic times inflicted upon it, including the 2008 GFC and the COVID-19 state-wide shutdown.

NO RELIANCE ON SALES STAFF TO GENERATE SALES
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 or large advertising budget. 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.

EXCELLENT PREMISES AND LOCATION
Supurb central location in an extremely modern business premises, with the capacity to double the existing profit. The condition of the premise is excellent, with landscaped gardens and a showroom which will impress the most fastidious Buyer. Customer parking and access for delivery trucks and other heavy vehicles isexceptional , as is the signage.

LOW 5-DAY WEEK TRADING – WEEKENDS ARE ALWAYS FREE!
The business trades five days per week opening at 7.30am and closing at 4pm.

LOW COMPETITION
Although the business has a clear point of difference that puts competitors at a disadvantage, it has always operated against the present level of competition. Evidence that competitors do not affect this businesses constant revenue stream is the massive forward order book, with a present sales value of around $500,000.

LOW HOURS FOR OWNER
The current owner works an average 32-hour week.

EXCELLENT AUTOMATED SYSTEMS
The business has an excellent, robust documented structure making the business easy to run and understand.

LONG ESTABLISHED REPEAT CLIENT BASE AND SUPPLIER LIST
As the business manufactures its own products, it is not reliant on agencies or a large sales percentage of clients, thus offering excellent stability and low risk.

LOW STOCK HOLDING OF approximately $180,000
For a business of this size, this amount of stock is considered minimal. Most comparative priced businesses will carry much higher values than this, which will demand higher working capital requirements and unnecessary money tied up during the term of ownership.

COD OR PAYMENT ON DELIVERY – LOW WORKING CAPITAL
This is a high cash flow business with some 20 to 30 percent of debtors paying within 7-days and the remainder within 30 days. This provides the business with an excellent cash flow, which minimises bad debts and working capital.

PROFITS CAN BE PROVEN
The business has a complete set of verified accounts and accounting computer systems that offer the Buyer’s accountant a complete audit trail to verify profitability.

NO BAD DEBTS
During the vendors’ ownership, the business has not experienced any bad debts.


PRODUCTS CAN BE DESCRIBED AS “MUST HAVE” PRODUCTS
Which are intensifying in demand, despite poor economic conditions.
CURRENT FORWARD ORDER LEDGER IS $500,000
UNDER CONTRACT
…Which Spans Many Months Ahead!

This is a sure-fire time-tested profit maker - You’ll never find another business as safe or as good as this!

SO THERE YOU HAVE IT! – Owner guaranteed sales - Lifestyle – Profit – Ease of Operation and the opportunity to Live Longer without the Big City Stress.

Change your life for the better and reserve your copy of our 100-page business report on this outstanding business today.

But because it’s suited to so many different types of people, this one won’t last.

Interested? Then please give us a call today.

Contact Seller

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View Broker Profile

Contact: Lynda Armstrong
Phone: 089 429 8882
Mobile: 0439 902 778
Bsale ID: 272205
Agent ID: GN9807B




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