For Sale $95,000
Steve Lentin

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Accord Business Brokers
Unit 3, 22 Fallon Street,
Caulfield, VIC 3162

Home/Garden for sale


For Sale $95,000


Business Details


Business Description Summary:
This timber fencing business was started by the current owner in July 1983 as a handyman business, but soon morphed into a fencing business as this was clearly the most profitable and most in demand service. Originally conducted as a spare time occupation, it was registered as a business in October 1991 and grew steadily from then onwards. The vendor has always concentrated on quality customers rather than quantity of work, and other than an initial advert in the late 1980’s, and an ongoing minor presence in the yellow pages, has not advertised for new business. In fact, many enquiries are deliberately not pursued if they do not suit the owner in terms of type of work and timing. He usually only undertakes work on personal recommendation of existing clients. The business does not have a website.

The official operating hours of the business are 7.30 a.m. to 4.00 p.m. Mondays to Fridays.
Market / Customer:
The customer base is limited to the inner south east suburbs and work is not undertaken beyond this area.

Products / Services:
The erection and construction of timber fencing and decking. Some small repair jobs are undertaken, especially if requested by existing customers, but are discouraged. Decking represents about 10% of the work.

The business receives about 25 enquires per week, and if the enquiry is suitable to the type of job preferred by the vendor, an appointment is made and a quotation provided, often on the spot, or usually, with larger or more complex work, mailed or emailed after considered evaluation. When the quote is confirmed, the job is schedules and the customer notified of the commencement date. Generally, the business operates on an eight to ten week lead time, which most customers find acceptable, and provides the optimum level of comfort and future work for the business. When lead times extend beyond this time frame, the vendor is more discerning in agreeing to take on jobs, and may even increase prices to slow down new jobs.

No deposit is required from customers for jobs under $5,000, but deposits are sometimes taken for $5,000 to $8,000 jobs. Above $8,000 a deposit is always required. The final payment is due on completion of work.

Plant & Equipment:
The sale price includes all tools and power tools used by the owner for the conduct of the business including

• Portable post hole digger at an original cost of about $ 1,600.
• Compressor and full range of nail guns.
• Full range of power tools.

It also includes a 2009 Holden VE Ute with Canopy and a trailer. The ute was purchased in 2013 for $19,500 and is fully paid.

The vendor will reduce the asking price by the value of Ute if the purchaser does not wish to take it over.
Management / Staff:

There are two casual on-site employees, one of whom has been with the business over six years.

The owner’s wife is a part time employee who attends to the administration requirements of the business including bookkeeping and BAS returns.

Sub-contractors are used for sliding gates and site clearance, where the fences are heavily overgrown and difficult to clear.

The role played by the owner is mainly managerial, but he does occasionally help out on some jobs. Typically he would set out the job and leave the employees working while he removes the refuse, attends to preparation of quotations, materials ordering etc. He does not undertake any heavy duty work other than assisting with the removal of old fences.

Sales performance in 2012 financial year was affected by the owner taking time off for short periods during the year. During the 2013 financial year he closed the business for three months while he took three months long service leave.

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Summary »

  • Business Category: Home/Garden
  • Business Sub Category: General
  • Turnover: 300000
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Accord Business Brokers
Unit 3, 22 Fallon Street,
Caulfield, VIC 3162

Phone: 03 9569 2883
Fax: 03 8677 0868

Steve Lentin
Phone: 03 9569 2883
Mobile: 0419 910 099

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