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How Do Businesses Go About Selling The Business

 
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Old 08-07-2014, 07:40 PM   #21
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Re: How Do Businesses Go About Selling The Business


Quote:
Originally Posted by jb4211 View Post
Mike, my brother may be getting hooked on the red now: bought two tools so far
Is your brother on the Talk?
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Old 08-07-2014, 07:42 PM   #22
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Re: How Do Businesses Go About Selling The Business


No
Just a DIY guy who loves tools.
I told him about your collection of red
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Old 08-07-2014, 07:43 PM   #23
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Re: How Do Businesses Go About Selling The Business


This was the first and then the radio

how do businesses go about selling the business-2014080595154204.jpg
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Old 08-07-2014, 08:29 PM   #24
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Re: How Do Businesses Go About Selling The Business


Huggy... There is alot of honest/common sense advice above... but if you do have a solid "roll-a-dex" (business term for customer list), you may have some value.

I assume you are incorporated (llc'd etc) which can easily be sold.... you could keep your phone number yourself, ask for an overide, profit percentage (minimal ownership) based on work secured through you.

Depending on your wishes, and your "partner", it could work for both of you..... your partner is not out of pocket capital on an unproven "phone number" and you have some extra travel/beer money.

I think it was Kap/SFO that thought of bringing a good/solid younster in.... work directly with him for a year... introducing him etc.... that would probably be your best possible purchaser.

As to finding that partner, I'd first go to known associates on a personal level.... then maybe a Craigslisting... I think you are too small for a business broker who would only complicate the issue with no up-front money involved.

If you indeed have a good repeat/reference list, call and let them know the facts, that you have an associate who will betaking over your business, and you will be pleased to coordinate/shedule their work and hope that you can work with them on a more limited basis.

Market yourself...

It's pretty difficult to assess your business goodwill.... gross is a misleading figure..... profit is a more important figure... and then how concentrated that profit is.... "how big is your roll-a-dex"

Good luck.....

(I would say that 500-600 gross sounds substantial for a one man shop.... but depending on your business.... my gross flipping will well exceed that.... lot of factors to consider.
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Old 08-07-2014, 09:08 PM   #25
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Re: How Do Businesses Go About Selling The Business


Search for a young guy / gal who digs on the trade, and you could see taking over the gig. Offer them some sort of ownership in the gig, provided they fit with you well... over time.
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Old 08-07-2014, 09:31 PM   #26
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Re: How Do Businesses Go About Selling The Business


I have an old boss who is trying to sell his business. Mid 60'd, ready to retire and leave New York for warmer winters. Every time we run into each other, he brings up me buying his business.

He's got a lot of contacts I would like to get (doctors primarily) but physical assets mean nothing to me and I think that's where he sees the value.

I wouldn't give up much for his contact list since those are relationships he has developed over his 25 years in business. Even with his personal recommendation, I don't feel that it would add that much to my business.
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Old 08-08-2014, 06:06 AM   #27
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Re: How Do Businesses Go About Selling The Business


huggy,
I am almost 53.
I reached the same point( though are numbers are different) in my mid 4o's.
Basically I reached the point where I could pretty much retire if I wanted to.

At the time I was very active on another forum ( finehomebuilding), working primarily solo plus subbing some stuff out.---- I typically worked with tools about 700 hours a year----and without tools about 300 hours a year. You can make a LOT of money roofing---- but it destroys your body if you don't take care.

At that time some of the older guys on that forum, gently and patiently explained about employees..........

I resisted that advice for several years because I LOVED the immense freedom that comes from working solo.........

After some time I realized that I am not the kind of guy who is ever going to retire willingly- I mean what am I gonna do with the time---be one of those golf playing parasites ?

so I slowly became committed to employees and training skilled guys to replace ME in the field and developing business to the point where it could continue to earn without my hands holding a hammer

this is a whole 'nuther skill set to master-and much more challenging,ultimately, than climbing scaffolding.

If your numbers are actually where you say they are----- then there is absolutely no reason why you can't hire a full time guy to replace yourself in the field. If you are working 25 hours in the field- believe me-- it's gonna take your employee 35-40 hours to do what YOU did- he is not going to be as efficient.

you can resist this for a few years- but ultimately you can't change the facts of the matter.

Best wishes,
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Old 08-09-2014, 07:56 AM   #28
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Re: How Do Businesses Go About Selling The Business


hiring someone to replace me full time is another idea i also had....could most likely keep 1/2 my income that way w/o doing much

maybe id still handle the phone calls....
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Old 08-12-2014, 07:10 PM   #29
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Re: How Do Businesses Go About Selling The Business


I bought my roofing business close to 5 years ago. I was working for my dad, and wanted to strike out on my own. Instead of starting a business, I figured I should buy one. I needed to come up with about a 3rd of the asking price, and took a 5 year loan out with the previous owner. The remainder of the loan was funded by Wells Fargo.

I feel that I got a good business at a fair price. I paid 110K for the business, it came with a couple of trucks and a good reputation. I would say that the reputation was worth more than the trucks. Since we have bought it, we have grown every year 25-35%. I think I am going to slow down next year and focus more on margins than growth.

I think that if you found a younger plumber with the ability and acumen to run a business, your business may be worth something. One of the previous posters is right in the fact that an investor may not find a lot of value in it because they do not want to go in and run the business, they would probably want a business that can run without them being present.
I know you have been looking for a helper, maybe you can find someone you can groom to eventually take over for you one day.
Good Luck.
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Old 08-14-2014, 05:04 AM   #30
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Re: How Do Businesses Go About Selling The Business


You could use a business broker. They will value and sell your business for 10% commission. Good place to start is Biz Buy Sell, website. Most buyers want help with financing which works out well if they pay. You hold back some paper maybe 50% over a couple years.

Couple options for marketing would be other plumbing shops. They might be interested in buying your clients. Second would be plumber or apprentice starting out. Third option would be selling to someone like myself who considered changing careers but didn't want to start out at the bottom. If you could find the right guy and partner up with for a couple years or longer, just estimating and taking care of the business then let him take over when he's ready and licensed. You pay him for his work then subtract some money every month for equity in the company.

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