Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Highrise on June 19, 2007, 06:18:53 pm
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I have a round in Bristol and do about 5g a mth how much is it worth if i sell.
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??? ???
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i think if you have accounts for it then you should sell it as a business ie with van system evertything, i mean if well estabilished and the accounts match you will get more that way.
may be wrong but thats my opionion!
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so how much? 4x 5x 6x the mthly + van + + + how do you work out how much a round is worth? ??? ??? ???
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Why are you selling it? sounds like premium work to me, £60k per year sounds like a pretty good turnover to me.
regards
Ian ;)
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the going rate is round about 3x / 4x (if it is good work)
i know in the bristol area, you are looking at that amount. But thats not including the van mind, you can add what the van is worth to that.
richy
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so why is it that a round worth 5g mth is only worth 15 - 20k :( and not 3x / 4x a year :D :D :Dmaking it worth 180 - 240k 8). It clearly worth more then 15/20k. what's your thought ;D
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Highrise are you aving a laugh? for a man with a 5k a month window cleaning round you seem to ask some strange questions. You should know all the answers with that kind of success - we should all be coming to you for advice somehow things don't add up?
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Highrise are you aving a laugh? for a man with a 5k a month window cleaning round you seem to ask some strange questions. You should know all the answers with that kind of success - we should all be coming to you for advice somehow things don't add up?
Mmmmm, was thinking the same!!
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Dream on boy!!!!!!!!!!
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you might think its strange but im looking at it in a business point off view. Do you think 60k ayear business is only worth 15 / 20k. I dont.... you must be strange if you do
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you might think its strange but im looking at it in a business point off view. Do you think 60k ayear business is only worth 15 / 20k. I dont.... you must be strange if you do
So the big question is how much do YOU think its worth?
Ian
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How long does it take to do and how many men to do it
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as you asked
most of my work is nicely priced and compact, 1 of the guys had worked it for 12 years and it was well established before he had the work
i paid 1 X the amount, so 5 K i paid 5 K
the other work was from another well established round who was "taking it easier" and wanted to sell, i paid 1 X the amount again
both the above i worked with the guys, i didnt get paid, just took 50 % off the amount
so i would have paid 2 & 1.2 K for 5 K work
the last lot was a guy moving to oz, i paid 1 X that work, which included some very nice commercail, whiich has more than paid for itself many many times a round
so to finish, 1 X the amount ;) thus 5 K for the work
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there is companys that will valuate your business and sell it for you, they will obvousley take some kind of commision!!
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It makes me laugh when people say that a business that takes £5000 a month is only worth 3-4 times the monthly take,you cannot compare that business to someone who might be selling silly amounts of work worth a few hundred quid that they canvassed in an evening.I`ve said it before £15-20k is nothing for a long established round that generates that kind of income month in month out,if i could pay that amount for a business that i was going to get full return in 3-4 months i`d think i was onto a right result.You can`t judge that kind of business by simply saying it`s only worth 3-4 times the take off the cuff so to speak.
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5k sounds like a joke you will get much more than that obvousley the people you bought the work of didnt value ther business!
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5k sounds like a joke you will get much more than that obvousley the people you bought the work of didnt value ther business!
if this is directed at me, the people i brought it off were well established and 1 of them is the biggest WC'er in the area, but he didnt want this work and we both agree'd on 1 X the amount
afterall your not buying anything, its just a goodwill payment, the customer can leave at any moment ( and a few did from 1 of the guys ) no problem, they just didnt like the change
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If you paid ix the amount for that work he either needed to get rid of it quick for some reason or it was run around like a headless chicken kind of work,my customers would expect me to sell to a trustworthy good wc.If your buying a round of terrace houses or a round of council houses your taking a chance,if i sold my round the person or persons would have to pass a CRB check cos a lot of my customers would put there name through one,that`s the difference with some businesses.
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If you paid ix the amount for that work he either needed to get rid of it quick for some reason or it was run around like a headless chicken kind of work,my customers would expect me to sell to a trustworthy good wc.If your buying a round of terrace houses or a round of council houses your taking a chance,if i sold my round the person or persons would have to pass a CRB check cos a lot of my customers would put there name through one,that`s the difference with some businesses.
the work is nice work, well priced and very compact, so no issue 's with the quality of work
i brought from 3 guys, 1 who was " semi retireing", 1 who was "taking it easier" and the other who was moving back to oz, all 3 were in no hurry to sell
if you ask around and people who dont use the net and most WC'ers dont, then the going rate is 1 or 2 X the amount, ive since been offered work by a guy who was moving to a different area, once again priced at 1 X the amount
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I don`t care who told you 1-2 times the amount no offense in my opinion that`s rubbish.
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I'm with Matt on this one, i would never pay more than 2x & at that price it would have to be well priced etc.
Macc
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I don`t care who told you 1-2 times the amount no offense in my opinion that`s rubbish.
no offense taken
a round is worth what some1 will pay for it, just like anything really and if the going rate is 3 X the amount ( online ) then that s the price
just out of interest, how much is 5 K of work worth in your eyes
as i have a little work in london thats been given to me, will be interesting to see how much you think its worth ( 10 X the amount ?? ?? )
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you might think its strange but im looking at it in a business point off view. Do you think 60k ayear business is only worth 15 / 20k. I dont.... you must be strange if you do
Although window cleaning rounds are based on goodwill, if the round is 100% legit and the transition is done right, I agree that 20K is too little.
People spend that kind of money on a franchise and pretty much all they get is a van and a manual on how to run a window cleaning business (that they have to find customers for first)
It's a sizeable enough round fo someone to leap out of a job and straight into another.
I think you need to find the right kind of buyer. Likely not even a window cleaner. ;)
Look for the kind of person that would buy a franchise. Someone with enough confidence in their own business acumen and management skills to spend big figures. Someone with drive.
They will see the investment value. Even if they bought on credit, the profits would more than cover the monthly repayments.
Offer to provide a couple of weeks training if you can and price that into your figure.
You need to tell us more about the kind of work it is and what the actual net profit of the business is.
If it's good commercial work, I would go for at least 12 times the net profit.
eg. say the net profit is £3000 after paying a lad to help you, fuel and other expenses etc.
3000 x 12months = £36,000
That way, the buyer can take out a 3 year loan and pay a third (a bit more with the interest) of the profits each month to repay the loan and still have an income of just under £2000 (because of interest).
After 3 years they are raking in £3000 a month, have likely expanded the business and still got the goodwill of the business to sell.
Don't underestimate the value of a good round. There are people out there that would snap your hand off.
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It makes me chuckle to think that people quiet willing to go out and buy a van and system for say £25000 with hardly any work all beit crap work,but they dismiss the thought that a business that earns them 5-6k a month is worth it`s weight in gold.If people say your only buying good will there not putting much value on there business,some might think it`s a gamble paying a good amount for a round but paying that much for a van without the work to back it up is madness.
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Up here in scotland i no two guys who have bought rounds in the last couple of years they paid what you make in the full year.One of them paid £40 grand.
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5-6k a month income and someone offers you 50-60k for it,honestly you would still have to think about it.If your not retiring age and have to find another income what are you going to do that is going to generate the income your used to,if someone was serious on buying they would work it with you for a couple of months and wouldn`t be able to write you out a cheque quick enough.
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Nice to read some posts from people that live in the real world,the last couple of amounts mentioned are more realistic.
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I have never used these round builders type people but if they can put a round together for twice monthly income then why would you expect to pay much more than that for a round. I agree a round worth 60k a year should be worth more, but companies move away, change cleaning contractors and some even get the nationals in so you never know how long the work will be available etc and even at 4 - 5 times value you are likely to be pricing yourself out of most people budget too buy and then I guess it would be a buyers market.
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if you buy any business you could lose customers, say you but a cafe has a profits of 50k a year you want be paying just over 4 grand will they??
i mean yuor turnover isnt guarenteed there is it??
if you ve been cleaning the same round for say 5 years thats as guarenteed as it gets, its down to the person who buys the work to put the time and effort into kepping that work or even expanding!!
trust me on this i wont be selling my work for x1 when i retire and i will defo get at least my yealy profits back!!
and if there is any one selling good work for x1 in greater manchester ill snap it up ;)
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you might think its stupid to buy/ sell for 3/4x mothly earnings, but try to sell your business for 100k+ and see were you get.
The thing is with window cleaning, a house you clean for £10 a month is hardly worth £120 is it?
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a house you clean for £10 a month is hardly worth £120 is it?
A single speck of gold isn't worth much either but a solid gold nugget is.
(In my previous post I used 12 x net profit in reference to good commercial work.)
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you might think its stupid to buy/ sell for 3/4x mothly earnings, but try to sell your business for 100k+ and see were you get.
The thing is with window cleaning, a house you clean for £10 a month is hardly worth £120 is it?
is it worth £120??? no more!!they will proberly have that customer for 10s of years.
I understand there is no guarentees customers come and go they may die or move or just cancell but iv found from experience that for everyone that cancells youll get about three new customers.
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Ronnie, if you are ever looking to buy a round let me know I think I will be able to retire at 45 if you are buying.
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well i wont need to because iv built my round up from hard work and and lots of effort and its still going strong!!
some people on here just dont help the window cleaning trade with there ridiculous low value of there work.
If window cleaning business were sold for wot there worth there would be less bodgit and badgits about and more proffesional reliable health and saftey and tax paying window cleaners about.
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Ronnie, if you are ever looking to buy a round let me know I think I will be able to retire at 45 if you are buying.
Ditto, Mines for sale £ 180k ronnie
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Hi, Had a good read of the above posts.
Window cleaning is changing drastically in the uk.
10 years ago you could get set up for a couple of hundered quid and off you go.
Today we have window cleaning BUSINESSES that run their companies properly (advertising,tax,insurance,vat,sign written vans,uniforms,wfp systems which cost thousands.)
It seems to me that people really undervalue their own businesses.
I left a good job to start my own business and put every ounce 0f what I can into it at every oportunity I get.
It was hard the first year and wondered if I had done the right thing but now would do nothing else.
You look after your customers and you will have work coming out of your ears.
I do not quite understand why people would buy business when there is so much to go at by going out and getting it yourself , but on the other hand I have worked damn hard to get where i am now and would not sell for the rediculous amounts mentioned on here.
If you do have a large going concern (above 5K a month it would only be a big company that would consider paying good money to take it off you so i would be getting in touch with the big hitters of the window cleaning industry to try and sell it.
I have a lad that works for me who has a very rich daddy and he wanted to buy into my business for his son.
He offered me 2 years books and I turned it down (100k).
Why would I want to half my income year on year for 100K as i would lose out big time in the long run.
Did the right thing as the business has grown considerably since last year.
Highrise if you cannot get a good price 15-20 times monthly cost do not sell it but get people in to run it and carry on growing as you are obviously doing things the right way.
There is thousands of businesses and households out there just waiting for you to come knocking.
Good luck what ever you decide
Robbie
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Highrise if you cannot get a good price 15-20 times monthly cost do not sell it but get people in to run it and carry on growing as you are obviously doing things the right way.
There is thousands of businesses and households out there just waiting for you to come knocking.
15 - 20 times the monthly cost :o :o
i would honeslty love to meet some1 who would pay that
afterall why couldnt they go and knock on some doors ( or employ doorkockers etc etc ) to do it and pay 2X the amount
we all live fairly local to a new build estate, where you will allways get work
Now before some1 says " why didn you do that ", at the time i was a carpenter, who was helping out the MIL's partener who had too much on, didnt want a area of work, so i took it to fill in between carpentry jobs, he then broke his leg so i helped him keep his round active, i was then offered some more work by the guys i have mentioned in this post
the rest is history
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There was a post on here refering to round builders saying they can build your round and you only pay twice the take therefore that`s what you should only ask for,take it from me a freind of mine rang them just out of interest and it was not possible for them to supply the kind of work he was looking for.They will only get you run of the mill type work,they might argue the fact but on enquiring that`s what he was told in a round about way.
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Matt no offense mate but i think your confusing a general everyday round with a round that can churn out 50-£60 an hour day in day out.
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There was a post on here refering to round builders saying they can build your round and you only pay twice the take therefore that`s what you should only ask for,take it from me a freind of mine rang them just out of interest and it was not possible for them to supply the kind of work he was looking for.They will only get you run of the mill type work,they might argue the fact but on enquiring that`s what he was told in a round about way.
What do you class as run of the mill stuff?? I use Roundbuilders and they have gotten me mainly residential as this is what i want, but i have also had commercial work from them, in fact all my 6 commercial jobs have come from them??
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Matt no offense mate but i think your confusing a general everyday round with a round that can churn out 50-£60 an hour day in day out.
oh i see, so a round is a " general everyday round" because it doesnt earn you 500 - 600 quid a day
i think i will only reply to sensible replies now, as 500 - 600 quid a day is NOT the norm
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There was a post on here refering to round builders saying they can build your round and you only pay twice the take therefore that`s what you should only ask for,take it from me a freind of mine rang them just out of interest and it was not possible for them to supply the kind of work he was looking for.They will only get you run of the mill type work,they might argue the fact but on enquiring that`s what he was told in a round about way.
What do you class as run of the mill stuff?? I use Roundbuilders and they have gotten me mainly residential as this is what i want, but i have also had commercial work from them, in fact all my 6 commercial jobs have come from them??
see my post above, it seems that 500 - 600 quid a day is the only round worth bothering about nowadays
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see my post above, it seems that 500 - 600 quid a day is the only round worth bothering about nowadays
Ha Ha ;D
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Right i've had enough I want to sell my round too, I earn a hundred pounds an hour eight days a week but it's getting me depressed because I find I can't expand anymore and I would really like to mix it with the big boys. So anyone who wants my round are welcome to it I can't take anymore!
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Matt - Business is business and we all want to be earning £1000 a day, why not every other business is there to make money and provide a good service and then sell their business for a good price and move onto something else or grow what they are good at.
It,s what people value their business at.
When I am older and cannot do it anymore if I cannot sell for a good price I will have people running the business as there is no way I am going to put years and years into building agood business to just give it away for peanuts.
Every day you see more and more window cleaners out and about and as the market becomes saturated and business becomes harder to gain prices will increase tenfold for buying top quality work.
To sell a decent round you are going to have to pay someone to sell it for you as a good going concern but a smaller business is still the same, a good going concern but does not attract the same attention from brokers to sell on your behalf.
Thats why people give their business away for next to nothing.
I have a friend who works in the pest control business (6 years) and is now considering selling.
He has been offered 4 years profit.
Still the same type of business where he can lose business at any time.
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If you can find someone to pay ten times earnings then good luck to you. But whilst there are others are being sold for a lot less what chance have you got, unless you have a unique selling point or a list of jobs that could be used to create something special. I guess an example would be you clean Buckingham Palace then if you could promote that, well who knows.