Garden Service long established and very profitable with contracts in large Garden Route town.

Asking Price

R1,992,000

Monthly Profit

R119,220

Asset Value

R 601,500

Stock Value

R 2,000

Yearly Net Profit

R 1,430,637

Summary

This business established over 15 years and comprises 3 dedicated teams, with senior supervision and are known for their services levels, quality of work supported by a strong asset base ensuring a level of professionalism not readily found in this industry. They also have a number of prime contracts comprising residential complexes, business office parks, hotels etc. The Owner has very strong controls in place ensuring that the teams adhere rigidly to their call schedules and systematic and detailed reporting is maintained.

Give me more information

Fully describe the business's activities?

The business offers all manner of garden services such as:
- Regular grass cutting
- Pruning and trimming of shrubs and trees
- Roll on lawns
- Preparation of garden beds
-Tree Felling
- Contract garden maintenance

How does the business operate on a daily basis?

The Owner is supported by two senior supervisors and three teams.
Staff meet at the storage facility in the morning and leave from there as per their call cycle requirements.
Call coverage is as per cyclical list issued by the Owner.
Start and finish times are recorded as well as the work that was completed.
The trip lists are then handed in for invoicing.

How are the clients attracted to the business?

Long established business with a number of contracts in place and known for their quality of work.
Owner ensures that all clients are treated to a very professional service and strong supervision is in place.
The assets of the business are conducive to professional garden servicing.

What Advertising/Marketing is carried out?

Face Book.
Word of mouth endorsement.
The fact that they have regular large contracts in place creates excellent word of mouth support for this business.

Does the business have any contract work?

Yes, there are a number of large and regular contracts in place,

What competition exists?

There are other similar businesses but the service levels and professionalism of this business is exceptional compared to many of other operations.

What are the seasonal trends?

As with most businesses of this nature, the winter period is slower than the summer.

Is the business VAT Registered?

Are there up-to-date Management Accounts available?

The Seller has all the necessary administration available for when it is required for Due Diligence process.

How could the profitability of the business be improved?

There is an opportunity to increase the number of teams on the ground since the demand is there.
More focus could be given to tree felling and landscaping and other related services by a new Owner.

What is the total staff complement?

14 Including the Owner.
2 Senior Supervisors support the Owner and they transport and remain with the teams at all times
The admin function is handled by the Owners wife.

How involved is the Owner in running the business?

The Owner is actively involved on a daily basis, and handles the operational management, quotations and client liaison.
He is instrumental in the business having a number of signed contracts in place with home estates, hotels, business offices complexes and other large projects.

When does the current lease end?

There is no lease in place and only storage facilities are necessary, so an ideal work from home opportunity.
The business has two storage units in the industrial area which are on a monthly rental basis.

What are the trading hours?

The teams start at 7am Monday to Fridays.

What is the square meters of the business?

1st Storage unit is 18 square meters
2nd Storage unit is 27 square meters

What are the main assets of the business?

Vehicles (Two almost new vehicles with very low mileages must be taken over)
Ride on mowers and trailers
Other large mowers with relevant trailers
Lawnmowers
Weedeaters
Chainsaws
Hedge trimmers
Small tools etc

Do any require repairing?

No, all equipment is kept in good working order

How have they been valued ?

Owners second-hand value

Which assets are on lease/HP and with whom?

2 very low mileage Mahindra vehicles are on lease.

What are their settlement amounts?

This information will be made available at time of Due Diligence

Are they presently insured?

Yes

Strengths?

Long established business with many regular high-end contracts in place.
Emphasis by Owner on quality of call by the teams ensures high service levels.
Owner with 2 senior supervisors stay in close contact with their customer base.
A personnel consultant company handles all of the staff contracts and renewals etc

Weaknesses?

This type of business requires the involvement and strong supervision by the Owner and the supervisors to ensure service levels are kept high at all times.

Opportunities?

There are numerous opportunities to bring in additional services or introduce an additions teams.
The business lends itself to landscaping work if a new Owner would like to pursue that opportunity.

Threats?

There are no known threats to this business if the new Owner keep the standards high, clients satisfied and retains ongoing attention to detail.

What is the reason for the sale?

The Owner has managed this business successfully and very profitably for over 15 years and feels that he is now ready to move into retirement.

Why is this a good business?

This business is good for the following reasons:
- It is long established and has a strong and loyal customer base.
- There are a number of regular clients, and lucrative contracts such as home estates and office complexes in place with large areas that need to be maintained on a regular basis.
- The teams are very well structured with strong supervision and work ethics, and the Owner has strong controls in place to ensure customers service levels are adhered to.