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Discussion Starter · #1 ·
i have been doing some extra retirement planning lately and selling my business is part of my plan.....im curious how people go about it?

do you hire someone to value it and sell it for you?

im a 1 man shop and most likely will always be.....i do around $550,000-$600,000 in sales a year....been in business for 9 years now....id like to think i could get $100,000-$200,000 for my business......all someone would have to do is take over my phone number and he'd get 99% of the homeowners and probably hold a few of the builders....

who would buy a 1 man shop? how could someone starting out come up with $100,000+ to buy it? or would it only be a larger company that would buy it? is a 1 man shop worth anything?

once i bought a cell phone # of a plumber friend(a business owner) who was retiring for $750....i turned it into $40,000 that year....after a year the phone just went silent...i threw it in the trash after 4 months without a call.......his customers were horrible/cheap...i only held onto a couple of them long term
 

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No smart investor will buy a business to become their own employee.

I was actually just talking to a guy about this yesterday. We pretty much agreed that selling a construction business is difficult to do unless you are a very well run, established and large organization.

Homeowners you work with like you, that's why they call.
 

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I think most small business's like ours are only worth whatever the trucks, tools, equipment, and whatever else you can sell is worth. Maybe a phone number like you said. We are the business.

Yep, well said.

I know my business without me would only be worth the assets on my balance sheet less a whole bunch.

Just being honest here.
 

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I knew a one man show who was a service plumber, he sold the business for 200k the truck, name, tools and most important here, he had commercial accounts with restaurants, offices, and property management companies. Those were the backbone of the business. Usually a commercial account will never complain that it's a different plumber as long as all the calls are still being properly serviced.
 

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It can work - a friend bought a small contracting business after the original owner spent a year introducing him to customers as the new face of the business. It worked out well for both sides. The original owner made some money and felt good about leaving his customers in good hands; the new owner got a ready-to-go customer base.

I think Mike's absolutely right about the commercial side - in many industries and professions - not just contracting - commercial clients just want the same service from the same phone number, because that's the easiest thing.

I don't know how well any of that translates to your business, Huggy.
 

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You are selling your client book and your good will. If you don't have any pending contracts or service agreements you are just selling good will.

I don't think you will get much money for it.

I gotta say 500-600k gross is pretty damn awesome for a one man show.
 

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Unless you have assets, a loyal customer base, existing employees and a system that feeds the pipeline, you don't have something that someone will be willing to plunk down six-figures for...

The only reason they will do so is a ROI and not starting from scratch... if you have none of the above, that will be hard to achieve...

I agree with Inner though... $500-$600K for a one-man show is impressive... that could be a bargaining chip to add to the mix... consultant to the business during a certain period of transition...
 

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Met a guy who had a 650k per year landscaping business. He was the manager, employees did all the work. He took a down payment of 50k with an agreement the new owner would pay another 100k over a period of time. New owner ran the business into the ground and the original owner never got another penny.

Bird in the hand...
 

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Met a guy who had a 650k per year landscaping business. He was the manager, employees did all the work. He took a down payment of 50k with an agreement the new owner would pay another 100k over a period of time. New owner ran the business into the ground and the original owner never got another penny.

Bird in the hand...
This is where you maintain control in writing until paid in full. He should of been on top of that.
 

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Discussion Starter · #14 · (Edited)
how do you gross 550k but only have the work for your helper @ 25 hours a week?
i typically work 80-140 hours a month in the field....working 160-180 has happened, but rarely ....some months are as little as 60 hours mid winter

i have grossed over 1/2 a million for 4 years now....all with 1200-1500 hours a year in the field....im damn good at what i do...im a super plumber who works 2x as fast as a normal guy....my body is falling apart at age 43 because of it though
 

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Discussion Starter · #15 ·
if someone worked with me for a month or 2 i think they would hold 75% + of my customers.....i dont see why they wouldnt as long as they keep the quality/service the same.......just think---you pay $100,000 for a $550,000 a year business and pay yourself back in 6 months(wages and profit)...... how easy it would be.....

i think my business is worth something.....500 steady customers.....

yes they are paying for ME, but i guarantee most of them would give someone else 1 shot to impress them as much as i do......people pay $200 a call to the phone book(i know an electrician w/ a full page ad and he says thats what it costs him per call)

i have another 12+ years to think about it........im not going to just give it away or let it die...someone will pay something for my phone #
 

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i typically work 80-140 hours a month in the field....working 160-180 has happened, but rarely ....some months are as little as 60 hours mid winter

i have grossed over 1/2 a million for 4 years now....all with 1200-1500 hours a year in the field....im damn good at what i do...im a super plumber who works 2x as fast as a normal guy....my body is falling apart at age 43 because of it though
"retiring at 43"...kudos to you.:clap: Your phone number is worth something. Maybe not 100k, but something significant.

I've got an offer to buy a business (phone number & contact list) for 10k. The thing is, I don't really have the additional time for it. Maybe I need to reconsider things. Anyway, good luck.
 

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This is Business 101

Your business is worth the net assets only. That's it. Businesses such as yours are not sold based on projected future income or based on passed income because there is/are not guarantees of tomorrow's income not to mention next year's.

You actually answered your own question: you bought a phone number, it generated income for a short time and then nothing.

I don't mean to offend, honestly I don't, but this whole thread seems very sophomoric to me.

I think you're best bet, would be hire someone to replace you: you maintain ownership until such a time when he may wish to purchase.
 

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This is Business 101

Your business is worth the net assets only. That's it. Businesses such as yours are not sold based on projected future income or based on passed income because there is/are not guarantees of tomorrow's income not to mention next year's.

You actually answered your own question: you bought a phone number, it generated income for a short time and then nothing.

I don't mean to offend, honestly I don't, but this whole thread seems very sophomoric to me.

I think you're best bet, would be hire someone to replace you: you maintain ownership until such a time when he may wish to purchase.
Actually it's business 102. :whistling:
 
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