Summary

Located in the north of Johannesburg, this company offers a comprehensive selection of services and products at competitive prices, including construction equipment and home improvement tools. Its diverse inventory is tailored to meet clients’ needs and support the successful completion of their projects. The on-site property will also be sold with the business for an additional R2,8 million.

Give me more information

Fully describe the business's activities?

This is a tool hire business operating from a northern suburb in Johannesburg

How does the business operate on a daily basis?

Clients phone in or walk in to hire all kinds of tools to be used in construction or home DIY.

Some clients collect and others ask for delivery of the rented items

What Advertising/Marketing is carried out?

The company has a website and they are well-known

What competition exists?

There are one or two others in the bigger area, but this business is most known considering the decades they have been operating

How could the profitability of the business be improved?

Leverage digital marketing, social media, and SEO to attract new clients.
Secure recurring business through B2B contracts.
Introduce niche or specialised tools to meet emerging market needs.

Do any have management potential?

Yes

How involved is the Owner in running the business?

Owner oversees all aspects of the business

When does the current lease end?

The seller owns the building and would like to include the property in the sale.

The price is R2 800 000

What are the trading hours?

Monday - Thursday 7:00am to 5:00pm
Friday 7:00am to 16:00pm
Sundays & Public Holidays Closed

What is the zoning of the premises?

The building is zoned as commercial and has business rights

What are the main assets of the business?

Tools and equipment, replacement value +- R2m
2 x delivery vehicles, new vale R700k

Strengths?

Established Reputation: Operating for decades, this is well-known and trusted by regular customers.
Diverse Client Base: Serves both construction professionals and DIY homeowners.
Flexible Service Model: Offers both walk-in and delivery options for tool rentals.
Online Presence: Maintains a website, enhancing visibility and accessibility.
Longevity in Market: Decades of operation contribute to brand recognition and customer loyalty.

Weaknesses?

Limited Marketing Activities: Relies primarily on reputation and website; minimal advertising may limit new customer acquisition.
Seasonal Fluctuations: Business slows down during December and January, affecting cash flow.
No Contract Work: No confirmed long-term contracts, which could provide revenue stability.

Opportunities?

Expand Marketing Strategy: Leverage digital marketing, social media, and SEO to attract new clients.
Partnerships with Construction Firms: Secure recurring business through B2B contracts.
Diversify Inventory: Introduce niche or specialised tools to meet emerging market needs.
Franchise or Branch Expansion: Replicate the successful model in other parts of Gauteng or beyond.

Threats?

Local Competition: One or two competitors in the broader area could challenge market share.
Economic Downturns.
Tool Maintenance and Replacement Costs: High wear and tear could impact profitability if not managed efficiently.