LONG ESTABLISHED SIGNAGE BUSINESS WITH RAPID FIRE REPEAT ORDERS

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seal approved PBS

NET PROFIT
$197,000 pa

PRICE
$495,000

STOCK
$20,000

LOCATION
Mandurah

REF NO
012607/22

BROKER
Glenn McTaggart

Available Now

Manufacturing

012607/22

Key Features

Ongoing growth - virtually recession proof
Immediate potential to expand the business
Could be run under management
Simple to operate - no experience needed
No reliance on sales staff to generate sales
Owner works 30 hours per week
Long established - 30 years

BUSINESS TO BUSINESS - IMMEDIATE EXPANSION OPPORTUNITIES

PLENTY OF UPSIDE HERE!

This EASY-TO-RUN business has increased sales and continues to grow no matter what the performance of the local economy; when the economy slows demand increases because businesses have a greater need for market exposure; when the economy is on an upward trend, signage sales increase as new businesses are established and existing ones grow.

MORE ABOUT THIS BUSINESS

SOLID DEMAND ALL YEAR ROUND

When the economy is in a downturn, businesses need to increase their marketing and promotion to sustain sales and market share, and so spend money on signage. When the economy is booming, new business open and existing ones expand, all requiring new signage. As a result, this business has continued to record increases in sales and gross profits over the past four years and the vendor sees no reason why this trend will not continue, especially given the fact that the Peel Region is set for a major population increase and the WA economy is one of the strongest in the world.

ALL BUSINESSES REQUIRE THESE PRODUCTS

For most businesses, signage in some form is essential. Some may want large billboards, shop fronts and vehicle wraps, while others may want a single sign announcing their presence, but every business has some need for the products offered by this simple to operate this business.

LOYAL REPEAT CUSTOMER BASE

The growing list of active repeat customers currently numbers approximately 45, with no one customer representing more than approximately 10 percent of the annual sales. This makes 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.

CUSTOMER RETENTION FEATURES

The business has accumulated a large volume of customers’ repeat orders and their artwork which effectively acts as a deterrent in losing customers to competitors.

BARRIERS TO 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 find it difficult to employ suitably qualified staff from the graphics industry, who are generally sought-after and therefore prefer to remain with stable, long term employers. They would also require significant time required to build a profitable customer base, and to establish beneficial credit terms with key suppliers.

LOW HOURS PER WEEK BY THE OWNER

The present owner opts to work part-time in the business, for about 30 hours per week. His main duties are staff management, general administration and responding to calls and emails as required. The only tasks he insists on completing is orders, payment of suppliers and staff. The business has developed a clear understanding of its client base, with a loyal and highly skilled staff able to take care of client needs.

I SAW THE SIGN!

Generate, manufacture, and install.

The current owner works 30 hours a week.

WA’s domestic economy – in which this business solely operates – has grown by an even stronger 5.7 percent since the start of the pandemic, again the strongest of the States and almost double the growth of the rest of the nation.

Fortunately, sales with this business continue to grow no matter what the performance of the local economy; when it slows demand increases because businesses have a greater need for market exposure; when it is on an upward trend, signage sales increase as new businesses are established and existing ones grow.

By 2050, the Peel Development Commission expects the region’s population will have risen to 444,000. As part of preparing for this the Commission has introduced Transform Peel, a 35-year project to create new industries, more jobs and improved food security and to put Peel in a strong position to become a regional hub for innovation in food and agriculture.

A Regional Investment Blueprint has been developed which identifies multiple opportunities for new businesses to start up, or existing ones to relocate to the region. Those businesses will, of course, all require signage of some sort.

REPEAT ORDERS WITH LIMITED MARKETING

The long-standing reputation of the business requires no aggressive marketing strategies or external sales force, as sales are generated primarily by customer referral and word of mouth. Increased sales could be achieved by implementing additional sales generators. Customer retention features include:

State-of-the-art equipment – the business has kept pace with technology and along with well-trained staff maintain and operate the equipment.
The location is close to customers for convenience and is located in the main industrial area on one of the major roads, allowing easy access and exposure.
Intellectual property relating to some customers remains with the business and hold their graphic art on file meaning reorder is easier and it’s less costly to have graphics redesigned.
A long trading history, with many customers trading with the business for since establishment this business prides itself on its quality of service and customers refer others to the business and return to it over the years.
Proven systems are in place and schedules all jobs and adheres to the schedule whenever possible (sometimes the weather has an impact) so its customers can maximise their branding / advertising exposure.

DIVERSE PRODUCT RANGE AND CUSTOMER BASE

Drawing on its extensive industry knowledge and the ability of staff to recommend proven solutions, provides trusted advice on the different types of these simple manufacture processes and source materials to provides cost-effective solutions to their loyal customer base.

This business is fortunate to provide their customers a full service from manufacture to installation, and has invested in specialist equipment to ensure the process is seamless and professional.

KEY FEATURES OF A SOLID RECESSION PROOF BUSINESS

Low risk – onward-upward sales trend despite covid19 epidemic and economic downturns
Long established for 3 decades – proving it can grow in economic downturns
High asset mix in the purchase price
The low staff of four fulltime employees plus owner
Owner works around 30 hours per week
Immediate potential to expand with limited advertising undertaken
Low stock holding and working capital requirements
Ease of operation with minimal experience needed
Self-propelled sales growth via word-of-mouth and website

There are several benefits to having business signage custom-made for a business, whether to adorn a building or a vehicle, or to place elsewhere as temporary or permanent advertising.