Performance Business Sales Phone : (08) 94 ****


Listing Id : 146027

Location : Western Australia

Category : Hire and Rent, Entertainment, Events

Asking Price : $385,000

Business description

Fun - Flexible - Profitable


Specialised Hire

$ Break the Shackles $

of your 9-to-5 Income
90% of sales generated online

Established 20 years plus!

Government, private & public schooling, sporting clubs, B2B and online retail, this business has it all.

Key Features:
Easy - Cash is King, 90% of debtors collected COD (plus no bad debts)
Easy - No permanent staff required
Easy - Automated online sales, $$ while you sleep
Easy - Blue chip repeat order customers
Easy - Long standing wholesale/cross hire partnerships

Established for 20 years; this business has entrenched itself in the corporate and DIY event/function industry, specialising in the hire of essential equipment for any public or private occasion.

Fortified within a network of strategic cross hire affiliates, this business is certainly “in the club' within its industry, a very difficult market barrier for new entrants to navigate.

...“keeps it simple” : Specialising in the hire of critical equipment has fostered a “go-to” culture amongst its growing community of repeat customers and wholesale partners.

Even if… you have no experience in running a small business,
Even if… you don’t have a large cash surplus to fund working capital,
Even if… you don’t have time to be sitting in an office 8hrs a day,

This Business Requires none of the above, here’s how/why.

Easy Systemised Operations:

Online sales portals take orders 24/7 via credit card, backed by a well documented and systemised business infrastructure perfected over 20 years. Regular customers have signed “preferred supplier” agreements delivering complete transparency and ease of service.

Low Working Capital - High Cash Flow:

If you have been looking for the perfect business for long, you may have noticed; specialised hire business are better at generating cash than any other business category. With all Plant and Equipment coming with the business, there is no need to constantly inject capital into the purchase of stock. Once delivery costs are accounted for, Gross Margins can be near on 100%. In a strong field, this business is arguably a step above the rest, with 90% of debtors paying upfront via credit card online!

Ultimate Flexibility:

Whilst the business does have a storage warehouse, the majority of sales are generated online. The current owners (husband & wife team) chose to man the office during normal business hours, with one of them working from home or remotely. Casual staff are also used to open and close the warehouse, freeing the owners to take time off or monitor the business remotely.

The untapped potential for this business online is remarkable. Continuing to focus on the online marketing and advertising will push the business forward in terms of brand recognition, community 'go to', and affiliations in more industries. Despite being established 20 years, the business has huge room for growth in an industry that is expected to perform very well in the coming years.

Thrives in any economy:

Slow Growth economic conditions lead to more “DIY” style functions, a key market for this business

Fast Growth economic conditions lead to more corporate style functions, a key market for this business

Customers - Schools, Event Organisers/Planners, Caterers, Sporting Clubs, Funeral Homes, Councils, Venues, Celebrants, Businesses organising their own events, sometimes inhouse celebrations or for clients. Everyone hires at some point.

Key Features over other businesses:

Strong Demand - No Matter What the State of the Economy

A rare feature indeed, the business is adaptable to any market condition, with different segments of the market accelerating in demand as the economy cycles through economic highs and lows.

Low Risk Asset Mix

With all plant and equipment included in the sale, this specialised hire business represents a very low risk investment. Not only is a large percentage of the purchase price secured in hard assets, but ongoing working capital requirements are very minimal. Unlike most businesses, there is no requirement for continued investment in stock replenishment.

Widespread Growing Repeat Client Base

No one customer represents more than 5% of the annual sales. This has been a deliberate policy employed by the vendor to make the business less susceptible to major sales downturns resulting from a loss in a major customer. This is a key feature not often found in businesses of this calibre.

Key Customer Retention Features

The business has accumulated a large volume of customer’s repeat orders which effectively acts as a deterrent in losing customers to competitors. A deposit of previous orders on file for each repeat client assists in understanding the customers’ needs in advance, and streamlines the booking process. The introduction of preferred supplier agreements have further streamlined this for regular clients.

Preferred Supplier Status

The business is in the enviable position of being a preferred supplier to several major customers. This streamlines the administration, quoting and order taking processes. The transparent and predictable costs & service levels engender very strong customer loyalty to the business.

Long Established

The business has been servicing the Perth market for some 20 years. Time has entrenched the business amongst a network of cross hire agreements with businesses that compliment its range, and a long list of blue chip repeat customers.

Low Staff

The industry being as large as it is, there has never been a problem to source new staff when required. Currently, the business employs only 1 casual staff member. Staffing roles are so simplistic, new employees can be trained in a few days and easily replaced if required. This keeps wages low and staffing options flexible.

No Reliance On Sales Staff

The vast majority of sales are simply self-propelled which means that the current owner does not have the overhead of running a sales force. However, it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly be increased if desired.

No Experience Necessary

The current owner had no industry experience prior to purchasing the business, and set about learning the operational aspects of the management function. As a result, the new owner will not need any technical experience, and all training will be provided by the current owner during a generous handover period. Moreover, the current owners also own the free-hold property and are ready to grant a long term lease to the new owner if required.

High Level of Client Loyalty

Barriers to Market Entry

Aside from the significant capital requirements to establish a business such as this, a newcomer to the market hoping to compete with this business would face the following issues:
1. Long standing relationships and loyalty
2. An understanding of requirements
3. Reputation
4. Supplier and Customer confidence

Low Advertising

Compared to most businesses the advertising requirements are very low. Advertising currently undertaken by the owners is restricted primarily to online platforms like google and Facebook. “Admittedly a lot more could be done here,” ...the current owners on their current advertising efforts.

Simple to Operate – No Experience Necessary

The business is extremely simple to operate and can easily accommodate flexible working hours as the much of the trade is through online portal or email. The daily activities of the owner are self-driven and while the level of effort and number of hours worked do have a direct effect on growth, the ongoing repeat orders continue to come in regardless.

Could Be Run Under Management

Whilst the business is not currently under management, it is possible that it could be. The owner of the business does not necessarily need to be involved in the day to day management, though if this was the case the business would need to employ a suitably qualified general manager who is capable of performing the owner’s role. The owner could then have strategic input and provide leadership without being involved in the day to day operation.

Work from Home

With the computer system currently in place it is possible for the new owner to run the business remotely from home or another site.

Current Year to Date Sales Are Up

Minor Overheads

Given the size of the annual turnover, overheads are relatively small. Specialised hire also generates excellent cash flow, ensuring minimal working capital is required.

Long Established Repeat Client Base and Supplier List

Not reliant on agencies or a few large clients, thus offering excellent stability.

Travel Opportunities

The owners have the opportunity to visit interstate and even international destinations with group conferences planned by the EIA and HRIA and several other hire and rental exhibitions held all year round. There is also the opportunity to attend expos, concerts, awards evenings, and networking events throughout the year in alignment with our Bronze membership with the EIA.

Profits Can Be Proven

The business has a complete set of verified accounts which clearly show its profitability.

High Asset Mix in Purchase Price

The business reflects a high percentage of the purchase price is made up of tangible stock and equipment. Compared to low asset businesses, this business reflects a lower risk and potentially delivers a higher bottom line profit through being able to minimise its tax through claiming depreciation as a non cash expenditure item on its long life equipment.

No bad Debts – 90% of orders are COD

During the vendor’s ownership the business has not experienced any bad debts. The larger projects in which the business is primarily involved can only be handled by the larger, more well established companies, who tend to be more financially secure. Aside from working with established and reputable companies, the business has strict payment requirements in place. All customers are fully aware of the businesses 'no pay - no product' policy, and the business has not had any issues with non-payment or recovery of monies for breakage/missing etc. A valid credit card or cash bond is held on all orders, and hirers sign an agreement before goods are dispatched.

It’s time to make a decision. This business WILL SELL FAST, and who knows when another of its kind will be available again? Certainly if this business ever hits the market again it will be at a much higher price.

Register your interest via email today, and we’ll reserve you one of 10 (only) business reports currently in production. If you’re ready to run your own business, choosing the hours you work, and from where, secure your copy now.


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