An opportunity to acquire this passive income generating business based in Western Cape. The owner started by sub-renting the kids playing equipment as he saw the lack of such a business model in the area and was able to acquire 100 pieces, which can be assembled to different designs. This business has a supplier based in Gauteng, which has been building, selling and renting the jungle gyms successfully for more than 34 years now, thus the decision to partner with them.
Rental contracts are 12 months for private individuals and 18 months for schools. After the rental contract expires, maintenance in the form of re-painting and physical checks are done before it re-enters the rental fleet. Customers are a continuous stream and with the influx of new families to the area, a lot of them are familiar with the brand because no other steel Jungle Gyms and renting business model exist in the area. Current footprint is mainly east of Western Cape, and there’s lots of room for expansion in other areas.
A contractor is available for pickup, deliveries and maintenance on the jungle gyms. Additionally, the pickup and deliveries are done by the owner utilising casual labour, also with casual labour doing the painting maintenance on the equipment. The main marketing strategies utilised are social media adverts, word of mouth, website and referrals. The new owner can explore expanding the services in other areas where the current owner has not managed to reach.
The seller is tied up in his main business and would like to put all his focus on it, thus decided to sell this business. This business is selling R395 000 and it generates an average monthly turnover of R8 322 with an average monthly net profit of R5 220.
