BM6500B – WA AGE-CARE HEALTH INDUSTRY
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--- “UNDENIABLE UPWARD TRENDS”----Strong demographic and social MEGATRENDS are DEMANDING upwards growth in this business
…supplying WA EXCLUSIVE PRODUCT LINES
…into AGE-CARE HEALTH INDUSTRY
If you are serious about long term growth potential in a business, this is the target market to focus on:…WHY?
::>>> One in four Australians will be over 65 in 2056
::>>> Medical technology is keeping people alive longer
::>>> Increasing disposable incomes in the over 65 demographic
These factors have perfectly positioned this 12 year old company in the right place at the right time.KEY FEATURES:
ONLY EXCLUSIVE LINES
- CASH ON DELIVERY SALES, for 97% of sales thus minimising cash flow and working capital requirements;
- ESSENTIAL, “LIFE ENRICHING” PRODUCTS, helping thousands live a dignified and independent lifestyle in their later years;
- SYSTEMISED BUSINESS, freeing the owner from non-essential administrator tasks;
- RAPIDLY GROWING “BABY-BOOMER” MARKET, set to dominate the economic and social landscape over the next 25 years;
- ONLY HIGH QUALITY EXCLUSIVE PRODUCT LINES, giving the business a key competitive advantage over other suppliers in the market;
- OVER 12 YEARS OF TRUST, built up through the company’s focus on quality rather than quantity, and unique distribution model.
This company has the exclusive agency and manufacturing rights to product lines that enrich the lives of thousands of retirees every day of the year.
In fact, the business ONLY DEALS WITH EXCLUSIVE LINES
, a large proportion being their own propriety designs, which they supervise the manufacture of locally and overseas.UNDENIABLY TRENDING UPWARDS
As a supplier to the aged and infirm, this company occupies a key position in a market whose upward demographic trends are undeniable.
The business owner understand it’s an “easy sell” when your products will help your clients regain and retain the dignity of independent living; indeed this companies products become essential aids for reducing pain and hardship, making clients and their families incredibly thankful.
And because the products are well built, superior quality items, some of European origin, the owner has the confidence of knowing the referral and repeat business will keep flowing in, creating a virtuous “snowball” of profitability.
--------------------------------------------------------------------------------PRICE: $1,330,000 (INC STOCK $200,000)
NET PROFIT: $533,652 (FY2014)
GROSS PROFIT: $936,040
--------------------------------------------------------------------------------WHY THIS BUSINESS LEAVES THE REST BEHIND:
- Guaranteed fast-growing market
The increase in both the number of aged persons within the Australian population and their percentage of the total is inexorable – no external factors are going to change the fact that the market for the products and services provided by this business is going to grow, the only variance between forecasts is to what extent. Based on relatively conservative projections from the Australian Bureau of Statistics and the Federal Treasury, the numbers of those aged over 65 will grow to 25 percent of the population by 2056.
- Essential products and services
A growing number of older retirees want to remain in their own homes, and available spaces within aged care facilities are occupied. Older people living at home will require the products supplied by this business.
- Widespread growing repeat client base
No one customer represents more than two percent of this business’s annual sales.
- Long established – unassailable reputation as the leader in its market niche
This business has been servicing the Perth market for over 12 years. With a strong reputation driving word-of-mouth, backed by highly focused sales and marketing, the business has experienced long term growth.
- High level of client loyalty
This business enjoys a very high level of client loyalty relative to others in this industry, with 13 percent of its sales last year coming from clients returning to buy a second, third or fourth product. This is an aspect of the business which could be grown with very little extra effort.
- Secure agency product lines
This business possesses exceptionally secure supply arrangements and/or exclusive agencies for all its products. All the relationships it has in place with its suppliers are longstanding and secure.
- Still retains considerable expansion potential
The personality of the current owner means the business has been managed on a somewhat conservative basis, which allows the new owner many potential areas to further expand the business.
Major competitors have been in the market as long, or longer than this business, so this business has always operated within the present level of competition. Faced with these market conditions, this business has always been able to achieve a full order book and have its production and supply staff working at or close to capacity. The presence of competitors is something that does not influence its operation, since the company’s historical figures show that its competition has effectively no impact on its turnover or profitability.
- High 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 need to find a range of products not already being sold within Perth, something the vendors advise would be next to impossible. Existing companies have essentially captured the WA market and any newcomer would find it very hard to gain a foothold.
- Simple to operate – no experience necessary
The founder and current owner of this business set about employing staff who were trained to handle the day-to-day operational aspects of the business. As a result the new owner will not need any industry experience as it already exists within the staff employed. The current owner effectively holds a General Managers role and oversees all aspects of the business though not actively working in any of them. The business effectively “runs itself”, and should the new owner wish to work in the business they need only to perform senior managerial duties. The current owner has no issues with taking holidays as he desires and regularly travels overseas, leaving the staff to run the business.
- Low hours per week by owner
This business has a team of long-serving cross-trained staff that will make it easy for the new owner to oversee the business operations. The current owner averages a 38 hour working week.
- Could be run under management
Over the course of the last 12 years and through considered analysis of its performance, the business has developed a highly effective and efficient systemised approach to its operations. This, combined with the simplicity of its operations, means it could easily run under management with the employment of a General Manager. This would substantially reduce the number of hours or possibly even eliminate the need for the new owner to work in the business.
This business is centrally located for ease of access for clients living north, south, east and west of the Perth CBD.
Given the size of the annual turnover, overheads are relatively small.
- Cost-effective advertising, based on experience
This business is fortunate in that it has a well-developed and effective marketing plan. The present owners have actively marketed the business, and as a result this business stands out from its competitors, benefiting from a constant and consistent flow of enquiries and sales orders. Still, increasing advertising is the most direct route to increased sales for the new owner – particularly if the promotions are aimed at expanding the client base into new areas within the industry.
This business operates from Monday to Friday; 9:00 am to 5:00 pm.
- COD or payment on delivery – low working capital
This business is a high cash-flow business with approximately 95 percent of customers paying COD. The business has a policy of securing 50 percent deposits on orders with the balances due on supply of the goods to the client. This puts it in an excellent cash-flow position which minimises the need for working capital.
The business has a complete set of verified accounts which clearly show its profitability.
This business experiences only an insignificant level of bad debts.
If you have been looking for a business to buy for a while, you know this is a rare opportunity to get into an exclusive industry.Call or email me
now to secure a copy of the business report.Email Me
now to register your interest for this excellent business.
Phone: (08) 9429 8882
Mobile: 0433 149 144
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