How does the business operate on a daily basis?
8am to 5pm and later when required

How are the clients attracted to the business?
Digital marketing is the main source of business via a good website which attracts many walk-in clientele.
Historically, the business attended related trade shows to showcase and demonstrate the products. These were very successful in attracting customers and ultimately in building a client base of universities, schools and other users of 3D products.
The business is a member of RAPDASA ( The Rapid Product Development Association of South Africa). RAPDASA's annual conference is attended every year which is a very powerful place to showcase the company's printers and scanners.

What Advertising/Marketing is carried out?
Google adverts which are managed by the website provider.
Filaments are also sold through Takealot.

Does the business have any contract work?
No, but many repeat customers, particularly universities

What competition exists?
There are a number of competitors but the market as grown hugely over the last 10 years. The exclusive 3D machine is the company's competitive edge in that the machines are high-end
products which produce a high-quality print and that can be used for educational and commercial applications (not just for hobbyists) at a very reasonable and competitive price point.

What are the seasonal trends?
The beginning of the year can be slower as many factories are closed and educational institutions only open in February.

Is the business VAT Registered?
Yes.

What VAT documentation is on file?
All documentation can be sourced from eFiling

Are there up-to-date Management Accounts available?
Yes, the SAGE Pastel Accounting System is used.

What Balance Sheet and Income Statements are available?
Annual Financails Satements for February 2022 to February 2024 are available. The February 2024 management accounts have been used for the purposes of this report.

What percentage of the business is cash/credit?
Most sales are paid for in advance. Some universities and large companies operate on credit terms.

What is the age analysis of the debtors book?
Most sales are paid for in advance. Some universities and large companies operate on credit terms.

How could the profitability of the business be improved?
There is significant scope for growth. The market is large and growing. The current owners are at retirement age and have operated the business as a lifestyle business, focusing on high service levels to a select client base. Limited marketing and no direct sales have been undertaken over the 10 years.
The business has a strong brand and respected name in the market and distributes quality products which are particularly popular with schools and universities (as they are work-horses) There is scope to grow further in the sector by developing courses and curriculums to be marketed and sold with the machines.
A sales team and potentially a retail presence would be an option for growth.
There is also a demand to provide printing services to customers who require printing but do not want to buy the machine and invest time and energy in learning how to use it. A dedicated print shop to service these clients could be an attractive additional revenue source.
A new operator who is more ecommerce savvy would also be able to better leverage online sales.

Is Seller finance available and for what amount?
Yes, but the stock must, at the minimum, be paid on the effective date

What is the total staff complement?
Two (a husband and wife team)

Give a breakdown of staff/ functions/ length of service?
The functions are split between:
- Technical issues including repairs and training; and
- sales, invoicing and customer service
A third party accountant is used for the financial statements

Do any receive special perks or incentives?
n/a

Are they on contract?
n/a

Do any have management potential?
n/a

How involved is the Owner in running the business?
Both husband and wife are involved and work from home

When does the current lease end?
n/a - work from home. New premises required

Is there an option of renewal & what period?
n/a

What is the annual escalation %?
n/a

What are the trading hours?
8am - 5pm

What is the square meters of the business?
n/a

Is a copy of the lease available?
n/a

Do you require a licence?
No municipal licences required. The business does, however, need a customs import / export licence

What lease deposit and/or other surety is required?
n/a

Can the business be relocated?
Yes, it can easily be relocated. Storage space for stock is required (currently a double garage is utilised).

What premises are utilised?
The business operates from the owner's home

What are the main assets of the business?
Tangible assets include:
- Computer and office equipment
- Inventory
Intangible assets include:
- Goodwill (business reputation, customer base, supplier contracts, website and Google traffic etc.)

Are any items not included in the sale?
No

What is their overall condition?
Good

Do any require repairing?
n/a

How have they been valued ?
Inventory is valued at cost

Which assets are on lease/HP and with whom?
None

What are their settlement amounts?
n/a

Will Seller settle or Buyer to take over?
n/a

Are copies of agreements available?
n/a

Are they presently insured?
Yes

Strengths?
It is a 13 year old, established and well known business in its sector
It markets and sells high quality printers and scanners at competitive prices
It is a profitable, work-from-home business that will suit those wishing to work from home
It has a strong relationship with its supplier and is the sole supplier of their product in the country. The product is of high quality and sought after by high-end users (universities, schools etc.)
It has an established and loyal customer base
The business is easy to operate with few staff
The market size is large and growing

Weaknesses?
It operates in a competitive market
It has a single supplier and brand

Opportunities?
The business could grow with additional marketing and sales focus in an expanding market
It can expand its product range
It could offer a one-stop 3D printing service offering
It could offer training courses for the product

Threats?
Cheaper competition could be a threat
Technological advancement could weaken the company's product offering

What is the reason for the sale?
The owners are wishing to retire

Why is this a good business?
It is a long standing business with a great product and stong brand in the market.
Its solid client base has a large installed base of printers in the education and commercial space that require ongoing consumables, spares etc. which lead to a self-propelled sales cycle of replacements and referrals.
The business has been operated as a lifestyle business with little focus on aggressive growth strategies which creates an opportunity for growth in terms of additional products and services and sales for an ambitious and energetic operator.