Performance Business Sales Phone : (08) 94 ****
Pat Keenan-Smith
08 94 ****

0413 ****


Listing Id : 58951

Location : Western Australia

Category : Hire and Rent

Asking Price : 700,000

Business description

 The only one of its kind - exclusive perpetual license to sell a world renowned and market leading product throughout WA. Servicing the lucrative public event and corporate function industry.


- Government customers
- 65% of sales are Repeat
- Monopoly Supplier - Timeless exclusivity!
- Sales up 15% on last year
- Recession Proof Business
- low 20 hours per week by current owner
- No full time staff
- Simple and fun to operate
- No previous experience or skills required
- Established 14 years
- Virtually no working capital required

Incredible cash flow - 70% of Sales are paid in advance, with the balance paid on delivery.

Sales:         $392,927
Net Profit:   $239,973
Plant and Equipment:   $4**** **** ,500

Gross Price:  $700,000

The business is fortunate to operate in a market where much of the demand is repetitive and self-generating. Regular public and corporate events occur throughout the year, most on an annual basis, while private events such as birthdays and weddings happen on every day of the year.

A large proportion of customers are repeat business, due to its reliable brand - backed by world market leading products, fortified against competition with a perpetual exclusivity for Western Australia.

While the business could benefit from increased marketing, it also has the rare attribute that every time it makes a sale, it receives free promotion to a large customer base. So, while 1000 people hired the equipment last year an estimated 200,000 used it.

Currently the business undertakes no advertising whatsoever and instead generates bookings from its website, repeat business from previous customers and recommendations.

Key Features over Other Businesses:

Large and loyal customer base
The business serves approximately 1000 customers every year, with 65 percent of revenue derived from repeat business.

Every booking effectively provides free marketing
The amusements are used by approximately 200,000 people every year, and the business is invited to numerous prestigious public events. Every sale is effectively a marketing exercise for the business, introducing the user to the company and the fun and excitement it could provide for any event they may plan in the future.

Government clients
The business gets repeat business from government agencies and local authorities – a highly secure market.

Newly captured customers
The business receives enquiries and bookings from new customers every week, ranging from corporate clients to private parties. All will potentially rebook for the future.

Serves an ever-expanding market
The market is expanding as the population of Western Australia grows by 226 people every day.

Long established
The business has established itself as the market leader over the past 14 years. Because of the vendor’s age the business has been managed on a conservative basis, allowing the new owner many potential areas to further expand. Evidence of this is the business has historically reflected substantial growth with no marketing plan, sales force or large advertising budget.

No experience necessary
When the vendor bought the business his previous occupation had been a chef. He had no business experience and easily learned on the job. He will work alongside the new owner for a month, without charge, to ensure they are comfortable with all aspects of the business; plus, the staff are capable of operating the business without the owner needing to be present, as they currently do when he travels overseas.

No reliance on sales staff
The vast majority of sales are simply self-propelled, which means the owner does not have to spend time canvassing for clients or using company funds as advertising expenditure. However there is a very strong possibility that the business would experience even stronger growth if the new owner spent more time on sales and marketing.

Low Competition
The business has the exceptional advantage of being able to offer a unique product that is exclusively only available to this business. It has an unassailable reputation as a reliable and quality leader in its market.

Barriers to market entry, including statewide monopoly
The state-wide exclusivity of its major product, its reputation and 14 year history means no newcomer could hope to compete with this business. It is in the enviable position of being able to maintain its position as the market leader without doing any advertising. This represents a major barrier to any new competition, since “reputations need to be built, not bought”. The costs of purchasing equipment, obtaining Worksafe registration and compliance, and the likelihood that insurance premiums for an untested operator would be prohibitively high, also combine to make any the entry of any new competitor highly unlikely.

Low advertising
The business is in the fortunate position of being able to maintain and grow its current earnings with no advertising whatsoever. This is a rare feature not often found in businesses. This means that a new owner is not committed to ongoing expense just to maintain current levels of profitability, but has the option of utilising advertising and promotion as one avenue of increasing sales if that is a strategy they wish to pursue.

Simple to operate
No previous experience is required, and the vendor had no background in the industry when he took over. His working day usually consists of simply answering the phone and taking bookings.

Owner can take holidays
The current owner regularly takes three week overseas holidays and the office manager has taken over his role with assistance from a part time operator.

Low hours per week by owner
During the quieter period (April to August) the owner works 10 hours over a five day week. During the busier period (September to March) this can rise to 20 hours a week.

Business is under semi-management
The business has an excellent structure with a part-time office manager, affording the owner very simple administration duties.

Could be run under management
Three years ago the owner took six months off and had a manager in place. Although it was successful, he feels the current staff can do almost as good a job with just minor input from the owner.

Work from home
The business is run from home, affording the owner enviable lifestyle advantages. The owner currently uses part of his shed to store the equipment. An area of about 80m2 is required, along with parking for the 10 vehicles and four trailers that are included with the business. If the buyer’s home does not have these facilities the vendor has identified several potential sites and will assist in identifying a suitable site. Allowance has been made in the addbacks to account for the hire of suitable commercial premises.

Current year to date sales are up by 15%

Long term historical growth
Continued growth has been achieved through the fact very few customers defect from the business. Once a client has used the businesses services and products, they very often establish a routine yearly booking, providing the business with a growing customer base year in, year out.

Minor overheads
The business is currently run from home and employs only part-time staff, mostly on a casual basis, so there are no expensive overheads.

Long established repeat client base and supplier list
Not reliant on agencies or a few large clients, thus offering excellent stability.

Secure agency
This business has an exceptionally secure, contracted relationship with world leading brands, giving it lifetime exclusive right throughout WA.

Recent capture of new customers
The business gains new customers each week due to its reputation, word of mouth and through its website.

No stock

Payment on booking or delivery
Most corporate work is paid for prior to being carried out. The business also has a large number of private clients that pay cash on the day of their event. This provides it with an excellent cash flow, which minimises working capital.

Profits can be proven
The business has a complete set of verified accounts which clearly show its profitability.

High Plant and Equipment value of $4**** **** ,500
A high percentage of the purchase price has the potential to be tax deductible via depreciation.

Long life equipment

Contact the broker listed above to find out more!

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