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UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: julianbiggs on February 05, 2007, 08:59:57 pm

Title: chance to buy into a round - How much do I pay ?
Post by: julianbiggs on February 05, 2007, 08:59:57 pm
I may very  soon have the chance to buy into an established window cleaning round which turns over £36000 a year. It's his total round already but i have the option to buy into it and start as 50/50.

Before anyone tries to put me off, ive know this guy nearly ten years and we have worked together before.

What should i expect to pay to do this ?

Title: Re: chance to buy into a round - How much do I pay ?
Post by: Tosh on February 05, 2007, 09:07:56 pm
Personally, I wouldn't pay more than three times the monthly value unless it was quality work and was given a customer introduction with the ex-regular-window cleaner.



Title: Re: chance to buy into a round - How much do I pay ?
Post by: julianbiggs on February 05, 2007, 09:11:42 pm
If it was quality work, and i know the average price is £16.00 per house...with a load of very lucrative commercial work...what then ?????
Title: Re: chance to buy into a round - How much do I pay ?
Post by: Tosh on February 05, 2007, 09:15:39 pm
Then it depends on how much you want the work, what the seller is prepared to part for it and what you're prepared to pay.

I still wouldn't pay more than three times the monthly amount; unless it was extremely lucrative work; and even then I might have reservations.

As someone else recently said, all you're buying is 'goodwill'.  You could be sacked a month or two later.
Title: Re: chance to buy into a round - How much do I pay ?
Post by: macc on February 05, 2007, 09:26:45 pm
Like it has already been said.

What the hourly turnover?

Is it a compact round?

How much do you want it?

Not sure i would like the idea of 50/50, there maybe days he needs off & you work, days when one of you needs to finnish early, could cause the odd problem.

It would have to be fantastic work for me to pay 3x, i have never paid more than 2x & for me the work would have to be mine, no 50/50.

Give it some serious thought.

Macc
Title: Re: chance to buy into a round - How much do I pay ?
Post by: Moderator David@stives on February 05, 2007, 11:59:26 pm
If you want an extra £18000 a year then pay what you think it is worth to you.

In university terms £18000 extra income gives you an extra £20000 student loan and 3 years out learning it.

How long are you prepared to work without return, this is one of the cheapest industrys to buy into.

Dave
Title: Re: chance to buy into a round - How much do I pay ?
Post by: texas girl on February 06, 2007, 01:22:44 am
Julian,

The fastest way to destroy a friendship is to do business with them! ???

I have learned never do business with family or friends; never loan money to family or friends.

Even though intentions are good; when something goes wrong the relationship changes forever. :-[

If I were you I would agree to go on the route with him; maybe work a bit to see if it really is what you want. Without any commitment on your part; just get paid for your time and get lots of information.

The 50/50 makes me uncomfortable. And there is no guarantee when you are buying a list of customers. :-\

When I purchased a business  I paid 2 month's income yield for it. Lost 30% of the accounts due to competition, wrong information; lack of keeping up previously, etc.

Good luck,

Texas Girl :-*

Title: Re: chance to buy into a round - How much do I pay ?
Post by: Michael D on February 06, 2007, 07:38:06 pm
Hi
    If the round is worth £36000 per year, and say the jobs are done on a 5 week basis, every job would have to be done on time come rain hail snow, on paper the round would look good. Have a look at his books see how much he is bring in each week. Is your friend taking £3000 a month by himself or has he got staff working for him.