C.1 Glossary
|
Term |
Definition |
|---|---|
|
Spaza shop |
An informal or small-format township convenience store selling everyday household goods. |
|
FMCG |
Fast-moving consumer goods — groceries, household and personal-care products sold frequently. |
|
Gross margin |
Gross profit as a percentage of revenue (revenue less cost of goods sold). |
|
EBITDA |
Earnings before interest, tax, depreciation and amortisation — a proxy for operating cash generation. |
|
Shrinkage |
Loss of stock to theft, spoilage, damage or error, expressed as a percentage of revenue. |
|
SBC |
Small Business Corporation — a qualifying small company taxed at reduced progressive rates in South Africa. |
|
Cash & Carry |
Wholesale outlets where retailers buy stock in bulk at competitive prices. |
|
Value-added services |
Non-merchandise services (airtime, electricity, money transfer, bill payments) earning commission. |
|
DSCR |
Debt-service cover ratio — EBITDA divided by debt service (interest plus principal). |
|
MOIC / IRR |
Multiple on invested capital / internal rate of return — measures of equity return. |
C.2 Methodology
This plan preserves the sponsor’s headline revenue exactly and independently re-derives the full financial model beneath it. A retail profit and loss is built from a realistic blended gross margin and the store’s operating costs to arrive at EBITDA; component depreciation, interest on the SME term loan, and South African Small Business Corporation tax are then applied to arrive at net profit. The three statements are integrated so that the balance sheet ties to zero in every year, verified by an automated assertion. Market statistics are directional estimates drawn from public South African retail-industry sources current to mid-2026 and should be re-verified in due diligence. Returns are illustrative, are amplified by a small equity base, and depend on execution and realistic small-retail exit multiples; the base case does not depend on any exit. This document is a planning and information tool, not an offer of securities or financial advice.
MzanziMart Soweto Market Spaza Shop (Pty) Ltd · Business Plan & Investment Prospectus · July 2026 · Private & Confidential