Hardware Shop, Existing 44 years, I Want to Buy the Shop

Opportunity Snapshot

Investment Opportunity

I want to buy existing hardware shop from owner. The busness is an 44 Year existing business. Netto of R 2 300 000 per year. I need R 2 200 000. R 2 000 000 to buy the business and R 200 000 to add power tools to the stock
I can pay back in 36 month with intrest of 18% every 3 months. The amount every 3 months will be R 216 333.33

I am going to carry on with the business as is, I am just taking over from the owner. He is working cash with all of his suppliers so there is no existing accounts.

I only want to bring in Power tools into the shop. If possible I want the period for pay back to be 36 months.

The business is an existing business, fully stocked an already opperating for 44 years. It is well known and the shop has a lot of posibility for grow.

The investor can be sure of getting his money every 3 months, and there is no risk for him.

With the growing in D.I.Y and building and Plumbing the shop will never run out of business.

After 44 years in business only the products that do sell is in the shop. I have a data base on the shops computer from how many items is bought and witch supplier and for how mutch for the last 5 years.

The additional funding will be R 200 000 for adding power tools to our stock. There is a great lot of people asking for it. We have the add ons but not the Power tools itself in range.

Over the past 44 years that the shops have been here, a lot of other hardware shops open and closed down again. This shop has made a name in the area, and is supported by the community. We are located in the main road, and we do not sell any wood products or cement or any other building material like cement and bricks or metal. These products you will find with my competitors. I do have a big back yard where I can sell cement and ready mix from but that I want to start selling at a later stage when my system and stock in the shop is 100% in order, and my staffs fully understands the new system that I want to implement.

There is a lot off room for new products to add, but I want to take it step by step and keep my expenses as low as possible. If I can’t pay cash for the products that I add I will consider waiting a month or two till we have that kind of money to buy from the suppliers.

I want my Investor to feel that his money and my shop is in goods financial hands at all time.

The two men that are working there at this stage come from well known and influents business owners in my area, so that will only support the shop.

Marketing Plan

• The shop will continue as is, because I do not want to change a winning recipe.
• The only products that we are going to discontinue will be the Paint.
• New products is power tools in the Paint section
• We have roughly 48 rack spaces to put Power tools in.
• And we are also going to expand on our camping equipment, for example tents and sleeping bags
• As at this stage, there is no specials at all
• We will have special ones a month at the end of the month, running for 6 days. Starting the 25 of each month till the 30th. Or the Monday till the Saturday closest to that date.
• After speaking to one of the owners of our hardware suppliers, I already have some special discount on our opening special.
• I have two other suppliers also in mind to discuss to them the same proposition.
• Each of the staff is going to have there own departments.

The departments will be:

 Gardening, Plumbing and Electrical ( Dora )
 Hardware, Key’s, Tools and Nails & Screws ( J.J )
 Camping, power tools and D.I.Y product ( Pieter )
 Gas, Cement, Ordering and receiving ( Martin )

Investors can receive more information if they contact me on Merar.

Competitive Advantage

When I add the Camping and Power tools I believe that I will double my clientele in the shop. At this moment there is nobody doing Camping Equipment in the area.

Use of financing

R 2 000 000 is going to be used for to buy the business and
R 200 000 is going to be used for to buy the power tools for and have money in the bank for emergency's

I do not have money to invest on my own in this business , this is why I need investors to help me

I need R 2 200 000
R 2 000 000 to buy the business and
R 200 000 to add power tools to the stock
I can pay back in 36 month with intrest of 18% p.a every 3 months
the amount every 3 months will be R 216 333.33

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