Summary

Currently very close to break-even, this business in an essential industry with multiple revenue streams, offers an astute entrepreneur an excellent opportunity to improve performance and build profitability.

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Fully describe the business's activities?

Part of a well-established and respected water purification franchise that has been operating since 2016, this outlet is strategically situated at a busy fuel station and has recently won the award for the Best Purified Water Supplier in the town — a prestigious accolade that reflects the business’s strong reputation and commitment to quality. The business supplies high-quality purified still, sparkling and flavoured drinking water. Their products are available in various sizes including 10ltr and 25ltr refills. They also provide water filtration solutions, branded bottled water, water cooler rentals, and related water treatment products and services.

Its strategic location services a broad customer base comprising households, commercial businesses, schools, offices, industrial clients and event organisers. In addition to its retail operations, the business generates recurring income through water deliveries, equipment servicing and maintenance contracts.

How does the business operate on a daily basis?

The business operates as a well-organised owner-managed store, benefiting from established franchise systems and procedures, operating standards, product support and ongoing guidance from the franchisor. The owner remains actively involved in overseeing operations, customer service, sales, supplier relationships and the overall financial management of the business, while being supported by a small, experienced team of three employees.

Daily operations typically begin with the production and preparation of purified water, quality control checks and the processing of customer orders. The retail outlet caters to walk-in customers purchasing purified water, bottled water, filtration products and related accessories, while telephone and online enquiries are attended to throughout the day.

What Advertising/Marketing is carried out?

Apart from its neat website, the franchisor advertises extensively on social media, and the store makes use of local WhatsApp groups.

What competition exists?

There is water shops in town such as Oasis water, Perfect water, Amanzi water, and local shops and supermarkets also sell bottled still water.

How could the profitability of the business be improved?

There are considerable opportunities to increase recurring revenue by targeting schools, hospitals, government departments, corporate offices, mines, industrial facilities.

Expanding preventative maintenance agreements for installed filtration systems would provide additional recurring income.

Corporate branded bottled water remains a growing marketing product for conferences, sporting events, hotels/guesthouses, weddings, promotional campaigns and corporate branding initiatives

Further development of e-commerce and digital marketing would increase product sales while broadening the customer base.

Increasing the water cooler rental customer base. This would provide a larger monthly retainer income.

How involved is the Owner in running the business?

The owner remains actively involved in overseeing operations on a daily basis.

When does the current lease end?

There is currently a month to month lease in place, however, the landlord will enter a new lease agreement with a buyer

What are the trading hours?

Weekdays - 8:00am to 18.00pm
Saturdays - 9.00am to 15:00pm
Public holidays - 9.00am to 13.00pm
Not open on religious public holidays

What are the main assets of the business?

RO filtration system
Tap stations
Display fridge and two freezers
Electronic equipment
Cameras
Office furniture

Strengths?

- Strategically located at a busy fuel station
- An established and trusted brand.
- Excellent franchisor support with proven systems in place
- Multiple recurring income sources
- Diverse customer base
- Significant opportunities for future expansion
- A scalable business model
- Exposure to the growing water treatment and purification industry

Given increasing consumer awareness of water quality and the ongoing demand for potable drinking water and reliable purification solutions, this business is well positioned for sustainable growth.

Weaknesses?

The business is breaking even, and a more focused marketing campaign and dedicated sales representative would increase revenue significantly.

Opportunities?

- Growing concern regarding municipal water quality. There are massive opportunities where government has failed
- Increased demand for quality drinking water as well as domestic filtration systems
- Expansion into neighbouring towns
- Growth in commercial maintenance contracts
- Increased online sales
- Growth in branded bottled water market