ROCK SOLID RURAL BUSINESS only 40KMS TO PERTH CBD

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NET PROFIT
$233,000 pa

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PRICE
$615,000

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STOCK
$260,000

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LOCATION
Perth Metro East

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REF NO
012729/22

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BROKER
Glenn McTaggart

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Retail
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012729/22

Key Features

  • Established for 21 years – proving it can grow in economic downturns
  • 3,000 customers with 75% repeat business
  • Sales in excess of $2.0ml
  • Low staff of 3 including owner
  • Essential rural products
  • Online click-and-collect recently established
  • Plenty of opportunity for expansion

ESSENTIAL RURAL BUSINESS WITH PLENTY OF UPSIDE

The business is very robust and reliable and – because of the essential product range – will withstand any economic downturn or recession.

With a large base of loyal customers who have realized that they can rely on the business for the supply of quality products, a lack of imagination is the only limitation on its growth.

This solid business has a diverse range of rural products and is fortunate in that with the seasons come demands for different product lines.

When one sector is quiet, another will increase demand, which keeps seasonal variation in sales to a minimum. Stock holdings are always maintained to suit seasonal conditions.

The business is relatively simple to operate and a new owner would not need any specific skills other than business management.

The business is fortunate that its suppliers are reliable, however, if there are supply chain issues there are alternative suppliers from whom products can be sourced.

It has only recently entered the online space, offering click-and-collect on a limited range of products. This is obviously something that a new owner can immediately expand to increase sales.

The business currently operates with a husband and wife team with one additional employee. The current owners choose to be hands-on, but with well-trained and reliable staff the business could run with minimal input from the owners.

The business has continued to record increases in sales and gross profits and the owner sees no reason why this trend will not continue, especially given the fact the population of the region is expected to continue to grow.

Customers provide repeat orders on a regular basis, loyal to this business because of its diverse range of products and presence in town, making it...

MORE ABOUT THIS BUSINESS

This is a high cashflow business with some 95 percent of debtors paying COD.  This provides the business with an excellent cash flow, which minimises working capital.

While this business will continue to grow organically, there are numerous opportunities to expand the business. The click-and-collect system is very new and will only increase sales. Expanding product offering and services with your imagination the only limit to growth.

The business has been servicing the it's market for some two decades and during that time, and with very little sales or marketing effort, turnover has continued to grow year on year, purely through reputation and word of mouth.

Customers provide repeat orders on a regular basis, loyal to this business because of its diverse range of products and presence in town, making it a “one stop shop” for all their rural needs.

The business currently operates with a husband and wife team with one additional employee. The current owners choose to be hands-on, but with well trained and reliable staff the business could run with minimal input from the owners.

So any business supplying those essentials is on rock solid foundations no matter what the prevailing economic conditions – something the business has proven over the past 8 years, surviving  the Covid-19 pandemic with little to no effect on its overall sales and profitability.

Rock Solid Rural Business With Plenty Of Upside

ESSENTIAL PRODUCTS – Any business associated with food production and agriculture will always survive through the toughest economic times. This business is well suited to a new owner seeking a country lifestyle only 40kms from the CBD with a rock-solid growing client base.

ENJOY THE COUNTRYSIDE – Run your own business with a great country lifestyle. The beauty of this rock-solid business is being located only 40km from the CBD. So you have the best of both worlds.

STABLE SEASONAL SALES – This business is fortunate in that with the seasons comes demands for different product lines. When one sector is quiet, another will increase demand, which keeps seasonal variation in sales to a minimum.

Stock holdings are always maintained to suit seasonal conditions. Customers know that they can source most products when they require them. If something isn’t in stock the business is generally able to supply it within a few days.

POPULATION INCREASE – Demand will continue to be driven by rising populations, domestically and worldwide, and by the increasing trend toward a “tree change”, where people leave the city and buy a small or hobby farms in rural areas.

UNIQUE BUSINESS
The business is unique in the area it serves due to its location and diverse product range. It serves a wide-ranging customer base from farmers and contractors to the local householder. It is not restricted to one demographic, and so has both stability of revenues and scope for growth.

ROBUST RECESSION-PROOF BUSINESS – The business is very robust and reliable and because of the essential product range will withstand any economic downturn or recession.

REPEAT ORDER CUSTOMERS – A large base of 3000 customers with 75% repeat orders ensures continued growth.

LONG ESTABLISHED – The business commenced operation in 2001 and was purchased by the current vendors in 2014. It has always received very solid support from locals, as it has developed a good reputation and support from the surrounding communities.

LOW MARKETING – The business has never had an aggressive advertising plan but instead has relied on word-of-mouth and the occasional social media post. Sales would potentially increase if more advertising was carried out.

CLICK & COLLECT TO GROW – It has only recently entered the online space, offering click-and-collect on a limited range of products. This is obviously something that a new owner can immediately expand to increase sales.

POTENTIAL EXPAND – New products could be introduced to complement the existing product range. The business regularly receives inquiries as to whether it offers deliveries. The vendor believes that if deliveries were introduced, sales would expand rapidly.

SIMPLE TO OPERATE – The current owner had no industry experience prior to purchasing the business and set about understanding the business and what is required to operate it.

COULD BE RUN UNDER MANAGEMENT – The current owners work full-time in the business, however, a new owner could run the business partly under management. The business currently operates with the owner/manager and his wife along with a part-time person who services customers and general sales duties.

Key Features

  • Established for 21 years – proving it can grow in economic downturns
  • 3,000 customers with 75% repeat business
  • Sales in excess of $2.0ml
  • Low staff of 3 including owner
  • Essential rural products
  • Online click-and-collect recently established
  • Plenty of opportunity for expansion

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