Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: cornwallwindows on May 24, 2015, 09:11:28 am

Title: Selling my business due to ill health - advice.
Post by: cornwallwindows on May 24, 2015, 09:11:28 am
Hello. Due to being diagnosed with Crohn's Disease recently I've found it impossible to keep up with my rounds a part from a day here and there.
So I've decided to sell it off.
Has anyone had any experience in selling off an entire business?
This includes, equipment, website, Facebook page, business cards etc. I have about 19 days of solid work, bringing in roughly 1,800 pounds per month.
Any advice about selling it outright or selling it in separate rounds would be great.
Thanks.
Title: Re: Selling my business due to ill health - advice.
Post by: Marc Stock on May 24, 2015, 09:25:06 am
Your likely to make more money selling off the rounds separately.  But for simplicity I'd sell off the whole lot in one transaction.  £21000 turnover business I'd expect  to sell for around £11,000 if you can prove earnings with backed up accounts. 
Title: Re: Selling my business due to ill health - advice.
Post by: tlwcs on May 24, 2015, 09:39:47 am
Your likely to make more money selling off the rounds separately.  But for simplicity I'd sell off the whole lot in one transaction.  £21000 turnover business I'd expect  to sell for around £11,000 if you can prove earnings with backed up accounts.


Sorry to learn of your illness and I hope it improves.
I'm not sure it's worth that.
If it's only being serviced  with a day or two here and there, there may not be much left to  sell
Good luck though
Title: Re: Selling my business due to ill health - advice.
Post by: cornwallwindows on May 24, 2015, 09:51:36 am
Thanks. I'm just worried that there's not going to be much interest. I'll be putting it on Gumtree, on here and on Ebay. Anywhere else?
Title: Re: Selling my business due to ill health - advice.
Post by: cornwallwindows on May 24, 2015, 09:54:12 am
I'll be selling all my equipment too, this includes 450l tank, pump, DI vessel, pressure washer, x2 brushes, lots of extras. I did hear somewhere that I need to add up the total income and times it by 3. Does that sound right?
Title: Re: Selling my business due to ill health - advice.
Post by: Walter Mitty on May 24, 2015, 09:54:56 am
Sorry to hear that you are unwell.  It's always  difficult to know where to pitch a price when selling up as work quality and prices can vary enormously.  Buying work where you just turn up, clean and leave a bill or get paid is, in my view, far better than work that needs to be micro-managed by pre-arranging due to loads of access problems (I only pre-notify about 4% of my work and that 4% has 90% of the problems).
If I were as potential buyer, the £1,800 turnover for 19 days solid work would raise a red flag for me - so it might be better to focus on the money earned rather than the time taken to do it.  However, this might sound like a decent £ per day turnover for someone just starting out - plus I realise that the economy in Cornwall tends to be generally less buoyant than in the south-east where I live.  It also depends on your cleaning method; are the customers used to and accepting of WFP?
I suggest that you draw up and highlight all the positive aspects of the business in order to maximise your selling price.
Title: Re: Selling my business due to ill health - advice.
Post by: cornwallwindows on May 24, 2015, 10:02:14 am
Sorry to hear that you are unwell.  It's always  difficult to know where to pitch a price when selling up as work quality and prices can vary enormously.  Buying work where you just turn up, clean and leave a bill or get paid is, in my view, far better than work that needs to be micro-managed by pre-arranging due to loads of access problems (I only pre-notify about 4% of my work and that 4% has 90% of the problems).
If I were as potential buyer, the £1,800 turnover for 19 days solid work would raise a red flag for me - so it might be better to focus on the money earned rather than the time taken to do it.  However, this might sound like a decent £ per day turnover for someone just starting out - plus I realise that the economy in Cornwall tends to be generally less buoyant than in the south-east where I live.  It also depends on your cleaning method; are the customers used to and accepting of WFP?
I suggest that you draw up and highlight all the positive aspects of the business in order to maximise your selling price.

Thanks for the reply. Why does the turnover raise red flags for you? Just out of interest, no offence taken.
Yes, majority is WFP work and there are some very compact rounds.
Title: Re: Selling my business due to ill health - advice.
Post by: tlwcs on May 24, 2015, 10:06:25 am
Sorry to hear that you are unwell.  It's always  difficult to know where to pitch a price when selling up as work quality and prices can vary enormously.  Buying work where you just turn up, clean and leave a bill or get paid is, in my view, far better than work that needs to be micro-managed by pre-arranging due to loads of access problems (I only pre-notify about 4% of my work and that 4% has 90% of the problems).
If I were as potential buyer, the £1,800 turnover for 19 days solid work would raise a red flag for me - so it might be better to focus on the money earned rather than the time taken to do it.  However, this might sound like a decent £ per day turnover for someone just starting out - plus I realise that the economy in Cornwall tends to be generally less buoyant than in the south-east where I live.  It also depends on your cleaning method; are the customers used to and accepting of WFP?
I suggest that you draw up and highlight all the positive aspects of the business in order to maximise your selling price.

Thanks for the reply. Why does the turnover raise red flags for you? Just out of interest, no offence taken.
Yes, majority is WFP work and there are some very compact rounds.

£95 per day less expenses.
If you can get a new starter to buy the lot it won't seem so bad, but thats quite a low day rate..
I would look to bundle work into roads or villages and sell them to guys who already have work in those areas.
Kit can always go on ebay
Tony
Title: Re: Selling my business due to ill health - advice.
Post by: wpclean on May 24, 2015, 10:34:56 am
Advertise it on www.wforsale.co.uk
I have sold a few rounds in there, and believe me when I tell you there are lots of people wanting to buy work.
You will get some bad advice on this forum regarding work, don't listen.
You have to market the work right, and have all the facts, and figures, and look professional to give the buyers confidence.
Offering to work with the buyer for the first clean will be a big bonus, it amazes me when I see rounds for sale with a list og house numbers, and wanting a deposit before showing the work . . . . yeah right  ::)roll
Title: Re: Selling my business due to ill health - advice.
Post by: wpclean on May 24, 2015, 10:36:23 am
If you want some advice, you can contact me, and will talk you through it.
Title: Re: Selling my business due to ill health - advice.
Post by: wpclean on May 24, 2015, 10:37:51 am
You can get a minimum of six cleans,  so don't take any notice of some of the posts on here.
Title: Re: Selling my business due to ill health - advice.
Post by: Matt. on May 24, 2015, 11:15:21 am
I am also sorry to hear about your misfortune, and agree with above post, try to sell the work to locals, you will get more by braking it up, equipment won't be a problem to sell

I do wish you the best of luck

Title: Re: Selling my business due to ill health - advice.
Post by: Smudger on May 24, 2015, 11:42:07 am
Cornwall, sorry to hear of your health issues.

Without trying to sound condescending, £1800 for 19 solid days is really a poor return, HOWEVER someone else may knock this work out in say 10 days, it's hard to judge  your pricing value without seeing the work etc...

But the size of your round is ideal for selling, a good amount for a starter but not too big for say another windy to take on and build there biz. The amount of cash required to buy your round wouldn't be frightening  for either parts of the market.

Price really is dependant on what you can really make p/h - if it's £35 + then to me I'd pay 6 or 7x the monthly anything below £25 then to me it's worth at best 3x  and a sliding scale for everything in between.

Equipment I'd try to sell with the round price it up retail then sell for 1/2 the new value price, I'd sell the round first then the equipment
Darran
Title: Re: Selling my business due to ill health - advice.
Post by: TomCrowther on May 24, 2015, 04:16:55 pm
That's great advice from Smudger 're round value. It's the hourly rate that determines the value.
Title: Re: Selling my business due to ill health - advice.
Post by: Walter Pole on May 24, 2015, 04:28:15 pm
This isn't an offer to you...but the last 2 businesses I bought were on this basis..
You are 1800 a month so I'll give 900 now and then in 2 months I'll deduct all losses...your not the man I started with etc..off the remaining 900.
Title: Re: Selling my business due to ill health - advice.
Post by: AuRavelling79 on May 24, 2015, 05:06:41 pm
Could you "oversee" it? Employ someone to do it? Rent it to someone? Keep the cream and sell the rest?
Title: Re: Selling my business due to ill health - advice.
Post by: Walter Mitty on May 24, 2015, 05:32:42 pm
Sorry to hear that you are unwell.  It's always  difficult to know where to pitch a price when selling up as work quality and prices can vary enormously.  Buying work where you just turn up, clean and leave a bill or get paid is, in my view, far better than work that needs to be micro-managed by pre-arranging due to loads of access problems (I only pre-notify about 4% of my work and that 4% has 90% of the problems).
If I were as potential buyer, the £1,800 turnover for 19 days solid work would raise a red flag for me - so it might be better to focus on the money earned rather than the time taken to do it.  However, this might sound like a decent £ per day turnover for someone just starting out - plus I realise that the economy in Cornwall tends to be generally less buoyant than in the south-east where I live.  It also depends on your cleaning method; are the customers used to and accepting of WFP?
I suggest that you draw up and highlight all the positive aspects of the business in order to maximise your selling price.

Thanks for the reply. Why does the turnover raise red flags for you? Just out of interest, no offence taken.
Yes, majority is WFP work and there are some very compact rounds.

Well your figures seem to indicate that it would be difficult to turn over £100 a day - and then you would have to deduct any expenditure before you reach the profit figure.
Of course, thinking about it, it may be that your daily turnover was low due to your health problem - and that a healthy buyer could earn much more from it.
Title: Re: Selling my business due to ill health - advice.
Post by: bobplum on May 24, 2015, 06:55:16 pm
Try asking Alex Gardiner, im sure he has work which he rents out to other cleaners, maybe they will be interested, or he may know someone, im taking it you are in cornwall
Title: Re: Selling my business due to ill health - advice.
Post by: Walter Pole on May 24, 2015, 07:01:04 pm
Or David Morris...
Title: Re: Selling my business due to ill health - advice.
Post by: britishwill on May 24, 2015, 07:02:33 pm
Just a thought they might be able to get the disease under control so that you could work it? In that case I would get someone to cover for you
Title: Re: Selling my business due to ill health - advice.
Post by: rah on May 24, 2015, 08:52:14 pm
Sorry to hear your news, I have NO knowledge of the dease, so not sure how it effects you, but I would be looking to manage it rather than sell it.

If your able to look more to finding work, than actually carrying it out
Title: Re: Selling my business due to ill health - advice.
Post by: Positivity on May 25, 2015, 07:54:05 am
Hi my wife's got the same disease. It can be managed. Have you been advised on an exclusion diet? Eliminate foods one by one.
Lamb and pears is a common exclusion diet. Eat only those two foods for a week and gradually introduce foods you think may trigger an attack. One friend of ours suffered the same and found out it was sprinkling PEPPER on his meals that triggered the attacks.
Title: Re: Selling my business due to ill health - advice.
Post by: Mike #1 on May 25, 2015, 08:38:53 am
Sorry to hear your news mate must be a tough time try not to be to hasty and give yourself time to really consider all options .

£1,800 for 19 days work aint bad despite what has been said it is more than double the minimum wage so a new start up would see that as a great start .
Title: Re: Selling my business due to ill health - advice.
Post by: Stoots on May 25, 2015, 10:59:09 am
£95 a day flat out 9-5, say 15 houses? is a poor return, youre looking at what 60-70 a day after tax, pure water, diesel, etc etc etc

if thats the case it aint worth much at all imo. but to someone else it might be worth it.
Title: Re: Selling my business due to ill health - advice.
Post by: Walter Mitty on May 25, 2015, 10:59:34 am
Sorry to hear your news mate must be a tough time try not to be to hasty and give yourself time to really consider all options .

£1,800 for 19 days work aint bad despite what has been said it is more than double the minimum wage so a new start up would see that as a great start .

Indeed, but I think that if around £100 a day is the maximum turnover, it would HAVE to be a new start who isn't yet aware of the expenditure angle.  By the time expenses are knocked off, that £100 would shrink by quite a chunk (variable depending on how the business is run).
Don't get me wrong, I'm not a huge earner either but that's because I choose to take time off.
I think the seller would do better to market it as £1,800 extra per month to be earned and let a buyer decide how quickly and cheaply they can do the work.
It was never my intention to come across as belittling the seller's daily rate - I don't operate like that.
Title: Re: Selling my business due to ill health - advice.
Post by: Mike #1 on May 25, 2015, 05:39:53 pm
Crohn's disease my tattooist has had it for years and still works 60 hour weeks .

Some are more fortunate than others , it depends on each individual case I assume .

Without going off the subject to much , how many folks are in paid employment getting paid £1,800 a month for 5-6 days a week .

And still have vehicle loan repayments & Fuel costs etc to commute to and from work .

Us successful business owners are very lucky .  Would be nice if my wife was on £1,800 a month and she cares for the elderly in care home .
Title: Re: Selling my business due to ill health - advice.
Post by: Soupy on May 25, 2015, 05:51:05 pm
Advertise it on www.wforsale.co.uk
I have sold a few rounds in there, and believe me when I tell you there are lots of people wanting to buy work.
You will get some bad advice on this forum regarding work, don't listen.
You have to market the work right, and have all the facts, and figures, and look professional to give the buyers confidence.
Offering to work with the buyer for the first clean will be a big bonus, it amazes me when I see rounds for sale with a list og house numbers, and wanting a deposit before showing the work . . . . yeah right  ::)roll

www.wforsale.co.uk is a dead link?
Title: Re: Selling my business due to ill health - advice.
Post by: Walter Mitty on May 25, 2015, 06:21:06 pm
Advertise it on www.wforsale.co.uk
I have sold a few rounds in there, and believe me when I tell you there are lots of people wanting to buy work.
You will get some bad advice on this forum regarding work, don't listen.
You have to market the work right, and have all the facts, and figures, and look professional to give the buyers confidence.
Offering to work with the buyer for the first clean will be a big bonus, it amazes me when I see rounds for sale with a list og house numbers, and wanting a deposit before showing the work . . . . yeah right  ::)roll

www.wforsale.co.uk is a dead link?

This forum's software is set up to automatically trim links to forums of a similar genré because the owner feels that is for the best.  I'm not sure that I agree with that, but its his toy so he gets to decide the rules.
Title: Re: Selling my business due to ill health - advice.
Post by: wpclean on May 25, 2015, 06:33:54 pm
If you were to search window cleaning rounds for sale you will find it  8)