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This Home Based business provides an independent bar auditing service to the hospitality industry. At the heart of the business is an intelligent combination of software and hardware which simplifies the complex task of accurately conducting a bar stock-take / audit.
Most of the customers have a bar audit / stock-take performed on a weekly basis, with a few fortnightly. This is a business that can easily be run by a single owner operator. On average he/she would require to commit approximately 20 hours a week to servicing the existing customer base. The business has minimal overheads and can easily be run from home with scope for further growth.
Background
The owner comes from a background in hospitality and IT. Having committed a significant amount of time and effort, they have created a system that provides extremely reliable and accurate data in the form of a comprehensive stock-take report. This report is an excellent tool for business owners in that it delivers timely and accurate information. Variances for all products are shown, therefore problem areas / products can easily be identified and addressed.
The system has been available in the market place to bars / business owners for over 7 years. In that time the business has developed and sold areas around the country and Melbourne.
Benefits to Business Owners
Stock shrinkage is the biggest risk to the profitability of a bar. Shrinkage can be as high as 10 – 15% and can occur in many forms including...
▪ Overpouring
▪ Free pours
▪ Inaccurate Charging
▪ Theft
For bar operators if they don’t know where the inconsistencies are, and/or what is missing in respect to their stock (alcohol), the issue or ‘leak’ in profitability can never be attended to.
This is where this business offers a much needed service, whereby variances can be brought to the attention of managers / staff and addressed, or it may even be a call for better training methods.
The service provided, is a process which has been improved over the years empowering business owners with more knowledge and information. In turn, this has allowed them to protect their stock (alcohol), a significant asset in their business which is highly vulnerable to shrinkage.
The software and processes used by this business have enabled business owners to reduce shrinkage to approximately 2% and in many instances under 1%.
The flow-on effect of managing stock / alcohol more effectively and efficiently, means there is improved cashflow and overall profitability in the long term. In many cases the cost is a small fraction of the savings / efficiencies achieved, therefore providing a true value-added service to bar owners.
Services / Charges
The independent stock-take service of this business can be broken down into a simple 3 step process.
Measure / Analyse / Report
This involves a stock-take whereby all items are counted / weighed whilst entered into the software. Results of the stock-take are then compared to identify variance. Variances are checked for possible miscounts or possible invoices / deliveries which have not been taken into account.
The software then prepares a series of reports which are emailed to the client within 24 hours. The price for this service is based upon a number of factors including base stock levels (to be counted) and weekly sales. In light of this customers pay anywhere between $150 - $900 on a weekly / fortnightly basis.
The Operation
The auditing/ stock take aspect of this business is currently taken care of by contractors. This has allowed owner, Geoff, more recently to push the business into Australia.
Having now established the business in Melbourne, Geoff is now looking to launch the service in Sydney. In the light of this Geoff is looking at spending increased time within Australia whilst still developing the software / hardware. Geoff is motivated to sell, to minimise his overall workload and allow him to concentrate on developing within Australia.
Profits
Turnover has increased over the last 3 years to the extent where the business made over $100,000 this last financial year (to March 2011) to an owner working approximately 20 hours a week.
Costs associated in providing the independent bar auditing service are nominal where the business can easily be administered from home.
Due to the owners commitments overseas in pushing the business into Australia he has entered into a relationship whereby contractors take care of the bar auditing function. The owner (Geoff) envisages that an owner working approximately 20 hours a week could attend to the current client base.
Summary
This is an established business with existing clientele who provide repeat business on a weekly / fortnightly basis. The business is proven and profitable with franchises operating throughout the country.
With excellent margins, minimal overheads and virtually no working capital required, the business in its present form is an ideal part-time / lifestyle business which can be administered from home. A working owner needs to commit only 20 hours a week (approximately) to service this existing clientele, leaving ample time to be able to grow the business / acquire new clients across a large area.
An example of this is the owner of the Auckland Central area, who has grown the business to the extent whereby contractors take care of the stock-take function whilst still leaving him with a six figure income after expenses.
The benefit of acquiring this business is the acquisition of a proven software and hardware combination, which allows for a valued added service to be provided to business owners. Furthermore this business requires no specialised skills with there being only 1 - 2 other competitors within the industry.
Asking Price
$180,000
Contact Aneil Narsai
09 630 1600, 021 314 004
Ref: 22752
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