"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
The business provides professional cleaning services to both corporate and residential clients within the Northern suburbs of Johannesburg. Services are rendered across multiple client sites and are managed on a job-by-job basis.
The business operates from the current ownerâs home, with one secure storage unit used to store cleaning equipment overnight. One vehicle is utilised to transport staff and equipment between job sites. A new owner would require similar home-based storage and vehicle parking facilities or alternatively could transition the operation to a small commercial premises if preferred.
The day-to-day cleaning operations are handled by two permanent staff members who service all client sites. The ownerâs involvement is primarily supervisory, consisting of selective site visits on certain jobs, quality control oversight, and client relationship management.
How long has the business been established?
The current owner started the business in 2010
How does the business operate on a daily basis?
The business operates with two vehicles and three permanent staff members who manage the day-to-day service delivery. During periods of increased workload, the owner utilises a preferred list of experienced temporary workers to scale operations efficiently as required.
How are the clients attracted to the business?
The business maintains an online presence through its website and Facebook page; however, the majority of new business is generated through client referrals and repeat customers.
Does the business have any contract work?
The business does not operate on fixed-term contracts; however, it has an established and extensive client database, which will be included as part of the sale.
What are the seasonal trends?
The business experiences stable demand throughout the year with no significant seasonal fluctuations.
Is the business VAT Registered?
Yes
What VAT documentation is on file?
Yes, will be disclosed during due diligence.
Are there up-to-date Management Accounts available?
Yes, will be disclosed during due diligence.
What Balance Sheet and Income Statements are available?
Yes, will be disclosed during due diligence.
What percentage of the business is cash/credit?
100% cash
How could the profitability of the business be improved?
Profitability can be improved by expanding operational capacity through the addition of an extra vehicle and cleaning team, allowing the business to service a higher volume of jobs per month. Demand has increased to a level where this expansion was planned by the owner, indicating clear potential for revenue growth with limited incremental overheads.
What is the total staff complement?
3 permanent staff
How involved is the Owner in running the business?
100%
When does the current lease end?
The business doesn't have a business premises, it operates from the owner's residence.
Are any items not included in the sale?
The owner's personal vehicle will be excluded from the sale
What is their overall condition?
All in good working order
What are their settlement amounts?
R500,000 for the branded vehicle
Will Seller settle or Buyer to take over?
Buyer to take over.
Are they presently insured?
Yes
Strengths?
Established cleaning services business with a proven operating history and stable client base in the Northern suburbs of Johannesburg.
Consistent year-round demand, resulting in predictable monthly cash flows.
Lean operating model with low fixed overheads, as the business operates from home with minimal premises costs.
Day-to-day service delivery handled by three permanent staff members, reducing operational dependency on the owner.
Ability to scale operations efficiently through a preferred pool of experienced temporary workers during peak demand periods.
Weaknesses?
No formal long-term service contracts in place, with work secured on a job-by-job basis.
Competitive market with relatively low barriers to entry.
Some ongoing owner involvement required for quality control, site visits, and client relationship management
Opportunities?
Expansion by adding additional cleaning teams and vehicles to service a wider geographic area.
Introduction of fixed-term or recurring service agreements to improve revenue visibility.
Increased digital marketing spend (Google Ads, SEO, social media) to supplement referral-based lead generation.
Upselling additional services to the existing client database to increase average revenue per client.
Threats?
Rising fuel and operating costs impacting margins.
Labour availability risks during peak periods if temporary staff are not secured timeously.
Power outages or access restrictions at client premises that may delay service delivery.
Increased competition from new entrants in the cleaning services market.
What is the reason for the sale?
The owner has recently received immigration approval and will be relocating to New Zealand, which has prompted the decision to sell the business
Why is this a good business?
The business is straightforward to operate, generating strong and consistent monthly cash flows while maintaining low overheads. It benefits from a lean staffing structure and does not require expensive long-term lease agreements, as it can be efficiently operated from a home-based setup. In addition, the business has a strong and established client database, enabling ongoing email and SMS marketing to drive repeat business and support continued revenue growth.
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