Rock Solid Business In A Lifestyle Location

Business For Sale Busselton, Western Australia 6280

Business Category Auto Accessories and Parts Machinery Mechanics Transport

$980,000

Description

Rock Solid Business In A Lifestyle Location

ESSENTIAL SALES BUSINESS WITH A COASTAL LIFESTYLE

This business is one of Southwest’s leading suppliers of an essential repeat products for earthmoving equipment, trucks, tractors, four-wheel-drives, passenger vehicles, and ATVs.

This business is the only Busselton outlet servicing large equipment, farm machinery, and transport vehicles with customers from Harvey to Augusta and all places in between.

The continued population and industry increase forecast for the region stands the business in good stead for the future.

Our supplier arrangements with Australia’s largest and most trusted names in this essential products business provide the business and our customer's significant benefits from our purchasing power and guaranteed supply.

Our equipment provides the business with a competitive advantage being able to service all types of large earthmoving equipment, trucks right down to passenger vehicles.

HISTORICAL ONGOING GROWTH - NO MATTER WHAT THE STATE OF THE ECONOMY
The business has continued to record increases in sales and gross profits from inception and on this basis, the owner sees no reason why this trend will not continue. The continued growth in the South West region is forecast to continue which makes the business virtually recession-proof.

IMMEDIATE POTENTIAL TO EXPAND THE BUSINESS
The current owner has been looking towards retirement and has engaged in minimal promotional activities to grow the business. The establishment of a website, marketing, social media presence, and a digital booking platform will almost certainly attract new customers. The employment of an on-road salesperson would also inject a significant increase in sales.

MONOPOLY WITH INDUSTRIAL TYRES
While there are 2 other resellers in the Busselton area, this business has limited competition in the truck and large equipment categories of their business. This provides a near-monopoly for the supply of essential products for the large equipment and transport industries.

LOCATION LOCATION LOCATION
Busselton is a coastal town with a great lifestyle and the major hub for surrounding districts. WA Planning Commission forecasts the South West region's population to reach 230,000 by 2026. Busselton is a major lifestyle city based on tourism, wine and food, creative and professional industries, and events.

POPULATION SET TO SKYROCKET
Currently, more than 179,000 people are residents of the South West. By 2031 it is anticipated about 226,000 people will reside in the region - and it's little wonder why.

OUR DIVERSE CUSTOMER BASE
This business is fortunate that unlike other resellers in the town the business enjoys a diverse customer base including, Earthmoving Equipment, Mining Equipment, Transport Industry, Tractors, Farm Equipment, Specialist Local Government Equipment, Passenger Vehicles, Four-wheel-drives, Motor Bikes & ATVs.

ONLY 4 FULL-TIME STAFF
The business operates with 4 full-time staff which includes the owner/manager and 3 full-time staff who are multi-skilled across most aspects of the business.

MONOPOLY IN THE MARKETPLACE
While there are 2 other resellers in the Busselton area, this business has limited competition in the truck and large equipment categories of their business. This provides a near-monopoly for the supply of these essential repeat products for the large equipment and transport industries.

BARRIERS TO MARKET ENTRY
Aside from the significant capital requirements to establish a business, a newcomer to the market hoping to compete with this business would face the following issues…
* The high cost of specialist equipment for large trucks and earthmoving equipment
* Establishing supplier accounts may prove difficult
* The cost of establishing suitable premises in a high-exposure location

LOW ADVERTISING
Currently, the business utilises regular television marketing to promote the business. It may be more cost-effective for a new owner to go down the digital marketing stream which would hit a larger target market.

FAVOURABLE TRADING HOURS
The business generally only operates 5 ½ days a week, however, operating hours are flexible depending on customer demands and the odd emergency requirements.

COULD BE RUN UNDER MANAGEMENT
The current owner oversees management and operations. Providing the new owner employed the right person, the business could be operated under management either part-time or full time.

CURRENT YEAR TO DATE SALES ARE UP
With the expansion of development in the region, sales continue to increase across all sectors of the business.

CURRENT YEAR TO PROFIT IS UP
Profitability of the business from the 2020 FY to the 2021 FY is up nearly 30% and continues to rise on the back of increased activity in the region. The forecast for the 2021/2022 financial year is set to break through $350,000 net profit and is already up 21% for the 1st quarter of 2022.

PROFITS CAN BE PROVEN
The business has a complete set of verified accounts that clearly show its profitability and any addbacks that apply.

PREFERRED SUPPLIER STATUS
The business has developed strong trading relationships with key suppliers over many years. These BLUE-CHIP suppliers have provided branding to the premises and are highly unlikely to duplicate that in the region.

NO RELIANCE ON SALES STAFF TO GENERATE SALES
The vast majority of sales are simply self-propelled which means that the current owner does not have the overhead of running a sales force. However, it also puts the new owner in the enviable position of having at hand a means by which demand could almost certainly be increased if need be.

EXCELLENT PREMISES LOCATION
The location of the premises provides maximum exposure situated on a high-profile corner in the industrial area of Busselton.

HIGH ASSET MIX IN THE PURCHASE PRICE
Tangible stock and equipment reflect a high percentage of the purchase price. Compared to low asset businesses, this essential service reseller reflects a lower risk and potentially delivers a higher bottom line profit by being able to minimise its tax through claiming depreciation as a non-cash expenditure items on its long-life equipment list.
Contact Seller
Glenn McTaggart

Bsale ID: 577388
Broker REF: 012467/21

Performance Business Sales Pty Ltd
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