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Business for sale in Western Australia
Performance Business Sales
Company Details: Performance Business Sales
Agent Detail: Brendan Cockram
THERES MORE TO THIS Service - Manufacturer - Wholesaler THAN IT\\\'S .
Click on the image to enlarge

THERES MORE TO THIS Service - Manufacturer - Wholesaler THAN IT'S ... 23% SALES GROWTH LAST YEAR!

 
Sellers Ref: (PK5108)
Location: Western Australia
Category: Manufacturing Light
 
Financial summary
Asking Price: 665,000
Sales revenue: 1,013,549
Net profit: 251,493
Furniture/Fixtures value: 102,000
Inventory/Stock value: 15,000
 
Business description

 >> Owner works only 30 hour week

>> Owner has every Wednesday off
>> Early knock of 2pm Friday's
>> Only 3 staff...
>> Easy to operate
>> Self-propelled sales – no sales staff
 
...and to top that all off! -  Current year to date sales are continuing to race ahead at a fire- breathing pace averaging $78,000 per month despite the state of the economy.
 
THIS IS ABOLUTE PROOF... 
...THAT rapid increasing sales and recessions can co-exist.
 
The vendor needs to take time away from running the business to undergo the intensive rehabilitation needed to recover from a major traffic accident.  Businesses of this calibre are not often offered up for sale, certainly not while they are still undergoing such a strong growth phase!
Not reliant on external market conditions...
 
 
Finally a business that’s success is not hinged on the rise and fall of any one industry or market.  Everyman woman and child utilises this businesses product every day! And its success is secured through the ever expanding Australian Population.
 
 
Effortless growth potential
Highly systemised and fully documented, no previous industry experience is needed to effectively grow this business.  Easy to manage with minimal staffing requirements of 3, all of whom are cross trained in each other positions for maximum security and ease of operation.
 
Sales: $1,013,549
Plant: $102,000
Net:         $251,493
Price:           $665,000 plus low stock of $15,000
 
 
Seeing is believing – contact us now to secure a copy of our 60 page business report!
 
Key Feature Snapshot:
 - Genuine reasons for sale
 - Not reliant on external factors for success
 - Simple to operate
 - No previous experience necessary
 - Low stock of $15,000 - means minimal capital investment to maintain sales
 - Highly organised and systemised
 - Increasing sales tied to population growth
 
 
Key features over other businesses
 
 > High Gross Profit margin of 52 Percent
Self-propelled sales and a high gross profit margin of 52 percent is indicative of a business which is both solid and in a strong growth phase.
 
 > Historical ongoing growth - no matter what the state of the economy
The business has 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.  Whilst this businesses success is not directly tied to one industry in particular, its future looks ever more promising with Western Australia’s increasing population boom.  
 
 > Essential products
The growing Western Australian population will require the continued use of this businesses product.  Virtually every man, woman and child utilises this businesses products on a daily basis.
 
 > Extensive forward order ledger
With forward confirmed orders, the self-propelling housing industry and population growth from interstate and overseas migration at record levels, the prospect for even greater profit increases are exceptional. 
 
 > Low hours per week by owner 
The present owner opts to work about 30 hours per week. His main duties are general admin, and responding to calls and emails.  The business has developed an outstanding understanding of its client base – the owner can always know where its profits come from and service these clients fully. The business could even be placed under total management to reduce the owner’s hours further if the new owner so wished.
 
 > Widespread growing repeat client base
Since the business commenced it has serviced a growing client list which currently numbers approximately 1,700.  Extremely strong relationships have been established with the majority of clients, which is evidenced by the number of returning customers. This widespread customer base 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.
 
 > Preferred supplier status
This business is in the enviable position of being a preferred supplier to several major customers.  This is a hard earned competitive advantage, in an industry that is considered quite conservative in its dependency on established and proven products.  Consistency and quality are of the highest concern, and price often a secondary consideration.
 
 > Not reliant on advertising
The business has been servicing the Perth market for some five years and during most of 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 has continued to grow year on year, purely through reputation and word of mouth.  The present owner has opted not to actively market the business further and this therefore represents one of the simplest and most direct routes to increased sales for a new owner – particularly if the promotions are aimed at expanding the client base into new facets of industry.
 
 > Only three full-time staff
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
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 sales could almost certainly be increased if need be.
 
 > High level of client loyalty
The business has a large number of clients who have returned to it on a number of occasions and in addition have recommended family members and friends.
 
 > Low competition
Rivals to this business are long-established, so the company has always operated against the present level of competition. In these market conditions the business is able to achieve a full order book, so the presence of competitors effectively has no effect on its turnover or profitability.
 
 > Excellent location
Situated in a high traffic location and central enough to cover all of the Perth metropolitan area and beyond.
 
 > Immediate potential to expand the business
By following up all sales enquiries and quotes supplied, and if desired by the new owner, by employing a sales consultant to generate more retail and / or corporate work. The new owner might also opt to commit to an advertising campaign through various media sources. The vendor estimates that employing a full time sales person would bring in an extra $400,000 of revenue per annum. 
 
 > Simple to operate – no experience necessary
The current owner had no industry experience prior to starting the business, and set about employing staff who could handle the operational aspects. Therefore the new owner need only perform client liaison duties; existing staff carry out the day-to-day running of the business. The only task he insists on completing is payment of suppliers and staff, but even this is fully prepared by the book keeper and outsourced to a payroll company.
 
 > Owner can take holidays
The present owner takes every Wednesday off, and an early day on Friday at 2:00 pm.  He generally arrives at the office around 7.30 am and is always able to leave by 3.30 pm. He does not need to work on weekends and usually takes three or four holidays a year.
 
 > Low trading hours 
The business generally only operates from Monday to Friday (with a 2:00 pm finish on Friday), unless weekend overtime is required in which case staff are able to work unsupervised.
 
 > Could be run under management 
Should the purchaser wish to operate the business as a passive investment, or just reduce even further the hours required from the owner, the business could easily be placed under management.
 
 > Current year to date sales are up 
More work has been won as the company pushes on with its current growth rate since the start of the current financial year. This further proves the strong position the business is in and the growth available for the new owner. All this is being achieved with no additional advertising spend.
 
 > Long term historical growth
The growth of the business 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. The vendor has learned that provided the business is attentive to customers’ needs and treats them honestly; they will return and recommend the business to others.
 
 > Minor overheads
Given the size of the annual turnover, overheads are relatively small.
 
 > Low stock holding – average of $15,000
This amount of stock is considered minimal. Most other 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 most customers paying 50 percent deposit with order and paying the balance COD.  This provides the business with an excellent cash flow, which minimises working capital.
 
 > Profits can be proven
The business has a complete set of verified accounts which clearly show its profitability.
 
Rarely will you find a business of this calibre coming to the market, and it is only under the unfortunate circumstances of which this business is being presented, that they often do.  With the owner committed to long term rehabilitation following a serious car accident, he offers a business with outstanding stability and growth prospects.
 
This business is currently with our report writing division, and the business report is expected to be completed by the 1st of October.  
 
Register your interest now, and secure a copy of the business marketing report upon completion.  
 




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