Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Phillip Mold on July 05, 2011, 06:20:40 pm
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Any one got an idea if a carpet cleaning business has any value over and above the sale value of van, equipment and chemicals?
Would a buyer be interested in the list of previous customers (approx 900 different ones excluding repeats) ?
Would it be better to sell the kit bit by bit or try and flog the whole package?
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if someone offered me £100,000 for my business i would say no. but its not worth £100k. tough one that one.
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i dont believe a sole trading cc business is not worth anything above what the equipment is worth as repeat customers go back to buy from who they know not the company name . a franchise business is dif eg chem dry, service master because of the brand awareness.
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Surely it can only be worth what contracted work you have on the books.
I sold my window cleaning business 18 months ago but the customers on there were as good as contracted as they all got done on a monthly basis.
I can't see that domestic carpet cleaning customers are worth much other than the name they have become used to calling when needed.
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It's worth exactly what someone's willing to pay for it. Think of a number and advertise it at that price, if you get no interest, drop the price. If I decided to move back to Cumbria, I would buy the local C/C out at £15k... And I wouldn't want his van/equipment, just his customers he's built up since 1985... That was the price he offered me it for when we were considering moving back oop north.... :)
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There's intangible values of a company: Goodwill, recognition (of logo, trading name)
THEN there's the tangible stuff: Machines, Vehicles, Telephone numbers, fliers, chemicals, property, contracts with customers.
If you're selling to someone who lives 100 miles away, then the intangible part is not going to be of much value, whereas someone in the same town it would be a massive value builder.
Also, are you a sole trader, or is it a Ltd. company?
As mentioned already, it's worth what someone will pay for it.
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if i were relocating i would keep my phone numbers get into a discussion with a local cc in your current area and sub out all the work. write to all your existing clients and explain you are moving bla bla bla say you have people continuing to do your work in the area so please contact me in the future to arrange . do nothing continue to earn some money
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if you are selling and walking away they it will be hard but if you are offering to stay on on for a while and help with the transition and can show a continuous earning potential then it would be worth more.
if I was thinking of buying a company and the owner showed me that it was earning £1200 a week and was willing to stay on for 2-3 months on a 50-50 split then it would be very inviting
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The problem with any sole trader business is that people use YOU because it's YOU.
To my clients, I'm Steve the carpet cleaner not Carpet Care Plus.
There is no guarantee that any of your clients will use someone that takes over your database, although introducing and recommending them to your clients during a transition period can help.
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Agree with Steve on this one, lots of people ask for Billy the carpet cleaner, and don't really look at the business name!!!!
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i think if you are selling a good business locally then it does give the buyer a going concern to start with, they will get calls meant for you and it's then up to the new owner to convert the calls,
colin
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The problem with any sole trader business is that people use YOU because it's YOU.
To my clients, I'm Steve the carpet cleaner not Carpet Care Plus.
There is no guarantee that any of your clients will use someone that takes over your database, although introducing and recommending them to your clients during a transition period can help.
True enough but if you can find somebody with the same values as yourself then you are half-way there. I've had somebody cover for me whilst I was in hospital-taking the calls and undertaking the cleaning. Some of my clients were particularly impressed with him and ask after him. So it can be possible to find the "right type" of people.
The secret with client data bases is not so much the number of cleints but the number and value of repeat business-that is where you can truly show that the right buyer for your business will have a "guaranteed" income alreaady estableished. In other words there will be income coming in from day one.
If your accounts and client lists match up then who cares if the new owner cocks the whole thing up ......... once they have paid the asking price!
Rog
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funny this thread has come up. i'm expecting a call tomorrow from a big company that helps other companies by smaller ones (not sure exact name you'd call it but any way). they've tried contacting me many times and i have no clue why other then to buy the business but i've agreed to entertain them tomorrow and see where it goes and let you know what they're suggesting.
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Agree with Steve on this one, lots of people ask for Billy the carpet cleaner, and don't really look at the business name!!!!
Not Billy the IRONER then !!! ;D ;D
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Shut up Paul or i'll flatten you!!!!!!!!!! ;D ;D
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o Billy you must have a big ironer then !!! ;D ;D