Buy the Squirrel Depot

The Squirrel Depot: Prospectus 1. Business Overview The Squirrel Depot, established in 2020, was founded to provide families with affordable, non GMO, and unsprayed organic foods, typically priced 40% below standard retail rates. Operating entirely online at www.squirrel-depot.co.za, we have built a reputation for delivering quality, fresh, non-GMO whole foods to customers throughout South Africa. This presents a strong opportunity to run as a household business for supplementary revenue or to scale the model for growth. 2. Product Range The Squirrel Depot offers a diverse selection of whole foods suited to health-conscious individuals and families. All products are non-GMO, unsprayed, and organic where possible. Our offerings include: • Nuts: Macadamia nuts, walnuts, Brazil nuts, cashews, and almonds (raw and roasted) • Seeds: Sunflower seeds, pumpkin seeds, chia seeds, and flaxseeds • Pulses: Millet, quinoa, red and brown lentils, mung beans, and chickpeas • Oils & Honey: Premium olive oil, olives, and award-winning organic honey sourced from African producers • Dried Fruits: Assorted dried fruits, ideal for healthy snacking • Grains: A range of nutritious grains for dietary staples and versatile meal options With up to 80 products, The Squirrel Depot serves a variety of dietary needs, including vegan and vegetarian preferences, with bulk ordering options that attract small business customers.. 3. Market Analysis Target Audience The Squirrel Depot’s primary audience includes health-conscious individuals, particularly families, vegetarians, and vegans, often managed by female purchasers. Small businesses are also a part of our customer base, purchasing in bulk or weekly to meet their business orders. Market Growth The global non-GMO food market was valued at approximately $740.65 billion in 2023 and is projected to reach $2003.68 billion by 2032, with a CAGR of around 13.2%. Non-GMO is shifting from niche to mainstream as consumers increasingly seek foods free from genetically modified ingredients for health and ethical reasons. South African Retail Environment Health-conscious South African consumers are increasingly demanding non-GMO products, mirroring global shifts toward organic and natural foods. The Certified Non-GMO by AGW label is gaining popularity, offering assurance that products meet high-welfare and environmentally sustainable practices. 4. Business Model The Squirrel Depot generates revenue through direct-to-consumer sales, making it an easy choice for customers seeking the freshest quality at prices 40% lower than retail. With our current gross revenue, we do not pass VAT onto our customers, further enhancing our competitive pricing. Orders are processed entirely through the website, with invoicing and stock control fully automated. Saving the huge amounts of time. While operating as a home-based business, The Squirrel Depot provides a strong household income for the owner while delivering substantial savings to customers by bypassing the overheads of traditional retail. 5. Operational Details • Supply Chain: Products are sourced from multiple suppliers and delivered bi-monthly or monthly, ensuring freshness. In-house packing maintains quality control and favourable pricing. • Inventory Management: Real-time tracking through WooCommerce optimises stock levels, preventing shortages and overstock. • Order Fulfilment: Nationwide and Cape Metro courier services handle shipping, while local orders are available for pickup in Hout Bay or delivery within a 5-kilometer radius. The PUDO locker system provides cost-effective options. • Customer Service: Customer inquiries are handled via WhatsApp, phone, and email, with Ryan managing phone calls personally. A monthly email newsletter to 350+ subscribers updates customers on specials and new products. • Automated Systems: Sales transactions are automated, with invoices sent directly to customers, and order status notifications (ready for collection or dispatched) are provided. 6. Financial Overview The Squirrel Depot's financial statements transparently reflect earnings and expenses. Core operations maintain a strong gross profit margin, with additional discretionary expenses (e.g., transport, communication, software licenses, and self-consumption promotional discounts) temporarily impacting net profit on paper. The average customer spends R950 per order with a purchasing frequency of every 1 to 2 months Key Points • Gross Profit Margin: High profitability potential with a robust gross margin before discretionary costs. • Net Profit: Reflects a conservative net profit ratio; profitability could be increased by managing extra costs more strategically. Financial Summary (40% Net Earnings from Gross Income) • 2020 Gross Income: R244,222 → Net Earnings: R97,689 • 2021 Gross Income: R365,883 → Net Earnings: R146,353 • 2022 Gross Income: R255,504 → Net Earnings: R102,202 • 2023 Gross Income: R256,625 → Net Earnings: R102,650 7. Growth Opportunities The Squirrel Depot holds significant potential for growth. Increasing marketing efforts, particularly through social media, and further formalising operations can attract a larger customer base and increase revenue. With demand for affordable, high-quality, non-GMO foods on the rise, The Squirrel Depot is well-positioned to capture a greater market share. 8. Brand Value The Squirrel Depot is recognised for its distinctive appeal, with a visually engaging website and streamlined ordering process that provides easy navigation and efficient backend management. Our loyal customer base and reputation for product freshness, quality, and reliability add considerable value to the brand. 9. Valuation and Purchase Price The proposed purchase price reflects the business's recent financial performance, brand strength, and includes 20 hours of consultancy, training, and operational support from Ryan. Available for six months post-purchase, this support ensures a smooth transition for the new owner. Valuation Components • Adjusted Cash Flow Valuation: Based on a conservative 1.5-2.5x multiple of average net earnings, base valuation ranges from R168,000 to R280,000. • Brand and Asset Value: Established brand, customer list, and supplier relationships add R30,000 to R80,000. • Physical Tools and Website Transfer: Sale includes all necessary operational tools and website ownership. • Consultancy and Site Support: 20 hours of training and guidance, valued at R20,000. Adjusted Purchase Price Factoring in the recent operational pause, a fair market valuation for The Squirrel Depot, inclusive of brand, assets, and consultancy, a recommended purchase price of R299,000. 10. Monthly Operational Costs Essential Ongoing Expenses • Website Hosting: R150/month • Plugin Subscriptions: R3,150/year • Rank Math SEO: R1,732.50/year • JetPack Site Security: R1,050/year • Transaction Fees: 3.5% on credit card and digital payments These essential costs ensure the website remains secure, optimized, and user-friendly, contributing to a reliable customer experience. 11. Regulatory Compliance The Squirrel Depot (PTY) LTD (Reg No. 2020/233416/07) is a registered South African company, consistently meeting all statutory requirements, including tax and business regulations, ensuring a seamless transition for potential buyers. For More Information Ryan Beifus accounts@squirrel-depot.co.za ryan@beifus.com 0780755349 https://squirrel-depot.co.za