Whats Your Business Worth?

George Z

I am 10 or more years later I think,
used to feel like Paintguy26,
I don't any more

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Toronto Painters Commercial Painting Commercial Painting Toronto Toronto Office Painters
Painting Toronto Blog

mahlere

exactly

mahlere

be flippant if you wish, that's cool.

Gordo

So, with all this talk about systems making a company worth more............why did nobody contribute to the systems development thread?
http://www.contractortalk.com/f16/systems-development-list-16235/

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Looks like some pros were here.

PressurePros

Valid question. I guess my answer would be because then everyone would have a formula for success that I have worked hard at developing and spent a good amount of money researching without having to do any footwork. I think ideas have been seeded here. There are books about the topic. There are seminars. There are paid consultation firms. If someone is serious and is ready to take the step from self employment into business ownership there are plenty of resources where things aren't spoon fed.

I know if I am given something without working for it and learning from mistakes made figuring it out, I can't appreciate it as much. I understand Paintguy and other's mentalities because I have had the same thought process with other things in my life.. stubborn to the end. I don't want to preach to anyone. I am passionate about business. Incorporating positive emotion into a topic is difficult in writing. I guess I am at the stage in my life where someone only has to tell me the pan is hot, instead of me burning off two layers of dermis to prove it.

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

axnjoe

As much as it hate to say it but my service business is probably worth little from a buyout sale. Though the realestate and other assets do hold some value. As a small company and have been for years we have made it to a point of zero advertising large cusomer base(no annual contracts though) and all tools and trucks are new with a comfortable capital reserve. We have been very lucky in the fact that we do not really slow down in the winters at all. Still, I presume my biz value is a lot lower than I would like it to be. The idea of "systems" and implementing then is a goal for 2007. If I am to assume any risk, this is probably a good time.
GORDO: I was hoping that more people posted on your SYSTEMS DEVEOPMENT" post.
For me, I didnt post anything because my biz is small and your process discipt looked to be aimed at more established companies. Here, I am the business and I have never written a maual for myself but am in the process of assebling an employee manual for starters.
Meet me back at the SYSTEMS POST.

ultimatetouch

Sounds like a wise man. I agree.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

ultimatetouch

You hit it rite on the head. Some guys cant accept the fact that some guy s are as good as them if not better. I want to hire people who are going to be valuable to me. Its crazy but when you see yourself heading down that path because your a perfectionist you ask yourself
1.Who built the rest of the world? not you 2.How much money do you want to make a year? a lot more than I am. Let go of being "perfect".

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

mahlere

the reason Sam Walton was able to grow walmart was because of the systems in place. I know I keep harping on that word, but it the key point to any successful business.

Sam Walton hired good people. Do you think good people would work for someone with a plan? without a goal? without a roadmap to reach that goal? That's the system.

Do you think Walmart (and forget your personal feelings about the company, I personally don't like the company) would have 10's of thousands of employees a system in place for them to follow?

That's the point. You don't have to want to grow to a billion dollar company, but it you want to have more than one employee (you) and be efficient, you better have some structure for the other employees.

But if Sam Walton was still alive, and was in the office everyday answering questions about which aisle to put the toothpaste in, do you think walmart would be worth as much?

mahlere

and Gordo, I agree with pressure pros. I think there are some people on here who give more information than is required, and there are some people on here who get offended that you offer the information.

But mostly, I've spent a lot of time and money on my education. I'll point you in the right direction, but I'm not giving you my notes.

ultimatetouch

Heres the most important thing to any businesses value in my opinion.
Set your goals really high for your income and company income in your plan presently. When you see money comin in keep puting your promotions out.Drive your sales, drive your sales, drive your sales and then support it as you go. Keep doing that every year aiming higher and what you got is a valuable business. You can polish it every year a bit more. The systems come with supporting the work. You need the sale first.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

ruskent

When your acctually performing the work yourself, your basicly on a fixed income. The amount you can make is very limited! However, i do not think one should want to build a big business for the sole propose of making money. I think its important to have other reasons of being in business besides the money. Sure producing a profit is important, but it shouldn't be #1.

I think its important to find the line between perfect and good enough. I hate it when i hear someone say "Oh thats good enough". However, i doubt that 99% of homeowners could tell the difference between a perfect trim job and a very good trim job.

Matt

fez-head

This is a great thread that is long overdue

Ken I am looking forward to meeting you and hearing your presentation at the St. Louis round table February 24th.

Mike Finley

Gordo, I saw your thread and was over-whelmed by it all, plus it made me realize how much work I still have to do!

If you bite off some of that topic in little pieces I think you will get a lot of responses.

ProWallGuy

Yes Gordo, that is a good thread. I was waiting to see if Brian would pop in and say something. He is a member here who owns a painting co. in TX, and writes/sells systems for businesses. He could describe it much better than I can.

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Wallpaper Hanger St. Louis
Digital Murals Installation

Stone Mountain

Gordo, 6 months ago aI would have gladly shared all my "secrets". However, now that I'm in the throes of developing a franchise, it has become proprietary information and I can't.

Not that there's any real secrets. The key to ANY successful business is
1] customer first
2] fair pricing
3] keep track of what you spend
4] make sure "2" is higher than "3"

The rest of it is window dressing.

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Residential Deck Specialist: Vist our Website
www.fenceanddeck.ca

mahlere

Hey Stone Mountain, save your energy....it won't work

Dirtguy

At the suggestion of our attorney we used 5 times net earnings, before any share holders distributions or bonuses. From what I understand this is a fairly common "down and dirty" calculation of a business such as ours (Sitework). We had to a apply a value in the verbage of our share holders agreement and this is what we all agreed upon.

PressurePros

Take this for what its worth Dirtguy. I look for new businesses every day searching for gems. I would not pay five times net earnings for ANY business let alone a service oriented one. The nut would be too high.

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

Stone Mountain

Hickory Dickory Deck has 46 units.
Archadeck has over 90 units
Clintar has 25 units
Perfect Post holes has 30-some units
Mr. Post hole has 30-some units
Handyman Connection has I don't know how many units, but lots

Why wouldn't I try?

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Residential Deck Specialist: Vist our Website
www.fenceanddeck.ca