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PROFILE |
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Description: |
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A full service self storage business where the storage units are mobile and can be taken to the client and packed or unpacked on site. This business is ideal for someone who wants to run and operate it by themselves, looking for a side income or has an existing storage business and wants to expand.
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Industry / Sector: |
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Services |
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LOCATION |
| State / Province: |
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Gauteng RSA |
| City / Town: |
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Johannesburg |
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Location / Area: |
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Midrand |
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Metro Proximity: |
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Johannesburg. It should be possible to commute from this metro city to the business location. |
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Portability: |
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The storage units can be loaded on the back of a truck and moved to any suitable warehouse |
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PRICE |
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Asking Price: |
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R 700 000 |
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FINANCIAL & OPERATING INFORMATION |
| Turnover: |
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R 165 000 per month
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| Profit: |
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R 25 000 per month
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| Annual Return: |
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43
% per annum
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| No. of Staff: |
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2 |
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Year Established: |
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2019 |
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Legal Persona: |
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Private Company (Pty) Ltd |
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Other Information: |
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REASON FOR SALE
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The current owner is relocating.
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PROFITABILITY
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The current R20,000 paid for warehouse space would be profit if a buyer was looking to utilise excess space. That would realise R240,000 p.a. extra profit and immediately push ROI to 50%.
There is also potential to reduce certain costs.
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PASSIVE INCOME
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It is important to understand that storage offers an almost passive (or annuity) type income. Once storage is contracted there is very little to do in terms of servicing the customer.
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PREMISES
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There would be economies for a buyer who already has suitable and secure warehouse space for the actual storage. Finding premises at a good location would be key to improving profitability.
Existing Storage Warehousing in Johannesburg
Click the image to view enlargements
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POTENTIAL FOR GROWTH
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The current premises used could accommodate another 100 storage units. The marginal profit on these additional units would be high.
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MARKETING
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The marketing is done by an external company who feeds us the leads. We get around 160 leads per month.
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ASSETS
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The assets consist of 275 storage units (custom built for the mobile storage) which cost R5500 each. A total of R1,5m.
There is huge residual value in the asset structure which is double the cost at purchase.
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TRANSPORT
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There is additional income to be made on the delivery and collection of storage units. And customers can collect and return the filled units.
A local contractor can be arranged to transport which the customer would pay for.
Once the business develops further it would make sense to acquire a small truck and trailer combo.
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FRANCHISE OPPORTUNITY
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The structure of the business and requirement for local service to local customers makes it suitable for expansion as a franchise or business opportunity.
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COMPETITOR ACTIVITY
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The concept of the mobile containers on delivery and fetch is unique and offers clients a more flexible solution. As a result there is no significant competition. It also makes more efficient use of warehouse space which creates more profitability as you scale upwards.
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