Business For Sale. Hardware And Building - Gauteng (gp)

This business was established in October 2008 and has already exceeded its break even point , currently netting +- R8000 pm , before paying the manager. It has grown very well despite the worst period of the recession. The new owner will take over an already established profitable business with a huge potential.

Business is well located in a typical neighbourhood shopping centre accommodating +-30 shops varying from Woolworths, PnP, restaurant, etc with a well balanced basket of shops. Shopping centre is extremely neat in a busy street. The surrounding area is well build up with a high density population ,serving the LSM 4-10 income groups.
Business was started by the present owner and manager operated since inception. Trading is 7 days a week, closing earlier over weekends.

This hardware and Dulux approved paint agency retail shop serves mainly the immediate surrounds . The interior is very neat and clean with the typical DIY consumer for hardware, paint including mixing, key cutting but also cement & mix crete in bagged format stocked in the basement.

Sales excl VAT has grown from the first month of trading from R29 000 to an average of +-R80 000 pm for the last 6 months ending March 2010 and an average of R89 000 for the last quarter of 2009. GP is 42% and expenses +- R24 000 pm, currently netting approx. R8000 pm. for the last 6 months. (The historical average profit for the 12 months ending Feb 2010 was R7016 pm before paying the manager. The figure of R7 016 includes the loss making months due to the initial low sales)

The owner also owns other hardware shops and recently opened another bigger store which now requires his focussed attention. Also the owner considers the business a risk as the manager is well into his seventies.

Currently this business needs an on site operator owner to avail him selves of the following opportunities :

1)Open the already approved gas filling which is +- 300 meters from the shop and benefit from the upcoming high peak season demand for bottled gas.
2)The expensive key cutting machines are not being used due to no one trained and their is a high demand for this service with lost sales at a high profit margin

In short is this a good opportunity to buy an established business, passed it's typical growing pains for a start up business. Net profit stage has been reached, although small, but with lots of untapped opportunities. The owner is a keen seller !!