Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Platinum NW on June 08, 2009, 08:00:59 am
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Window cleaning rounds for sale in St Helens.Covers surrounding areas such as Widnes and Newton with expansion plans with maps for Warrington.Establish for 6 years in prime location with good customers. 7 fortnightly rounds and 4 monthly rounds.
Takes around 4 days to complete with WFP adaption ready if needed as all customers welcome the change
Turnover = £36000 - £39000 per annum
Net Profit between £34000 - £36000
Ask for further details-Rounds now being sold individually
Prices of the rounds range from £400-£5500
Asking price for complete round - £21000
Genuine sensable offers considered
Please leave an email and contact information and i will get back to you as soon as possible:
dmj.guest@hotmail.co.uk
Due to good customer relations buyer must show the same commitment and enthusiasm as ourselves
Due to a number of interested parties asking me to sell rounds individually due to banks not providing the funding i have now divided the rounds up into package deals
Package 1 - Turnover p/m £1420.50 - £10000
Package 2 - Turnover p/m £880 - £7000
Package 3 - Turnover p/m - £463 - £4000
Package 4 - Turnover p/m - £150 - £1000
Best Regards
Daniel Guest
Owner
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Daniel,
I'll give you 12k for the lot!
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28K Your having a laugh aren't you.
I'd snap up the 12k offer now.
At the end of the day all your selling is good will.
John
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£42 for £400! £400 for 4 £10.50 houses? sheesh
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good luck if the guy can get it.
Dont you mean gross profit and not net.
net is after , fuel , insurance, materials /replacements, telephone etc
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JandS
He is selling a round that has taken six years to build< Unlike carpet cleaning each customer is repeat cleans every month and ask any window cleaner - customers are very loyal (if they are not the window cleaner is doing something wrong!). Good will is not all he is selling. He is selling a business.
I sold a larger round than this last year and got the price I wanted and it was much higher than what he wants for this one.
If I lived up that way I would snap his hand off at 28k for 40k per year, that is a bargain.
Rob ;D
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i have got plenty of interest so we are just now waiting on finance to fund the sale
Cheers Rob -normally you would expect to pay 1.5 times the turnover on any other business thats why i always feel sorry for window cleaners who under value their rounds-
The round is an asset and is worth what people are willing to pay for it as i regret turning down an offer for £35000 a few months ago
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Can't believe someone offered 35k for it, be cleaning it for a year before you start making profit.
Round here they typically go for 4x the full round value and the offer of 12k by Al S bears this out.
John
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28K Your having a laugh aren't you.
I'd snap up the 12k offer now.
At the end of the day all your selling is good will.
John
Why has everyone got a hangup about "selling goodwill". If I was to purchase a Fish & Chip shop you would pay for an on-going business which would be assets plus % of annual profit. You are in effect buying goodwill, yes you get the assets on top but you pay extra for the "Business".
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Don't really matter what your selling the price is dictated by the going price.
See them in paper round here selling for 3 and 4 x there value so why would
somebody suddenly decide to pay 10 x when can pick them up for less in paper.
There's usually at least one a week for sale.
Will get one one night this week and check it out.
John
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Don't really matter what your selling the price is dictated by the going price.
See them in paper round here selling for 3 and 4 x there value so why would
somebody suddenly decide to pay 10 x when can pick them up for less in paper.
There's usually at least one a week for sale.
Will get one one night this week and check it out.
John
Because the quality is probably much higher.
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I would love it if a round was worth 10x value. but a question those of you that bought a round how many or the original customers were still on the books 6 or 12 months later.
Had the price been more reasonable I would have seriously considered buying itbut even then I would have concerns. One how many would i lose switching customers and to WFP and secondly with the greatest of respect to the residents of St Helens (I lived there for over 12 years) I would suspect that the indvidual houses are on the low side price wise. IE the cleaner who did my house in St Helens charged £5 (trad) whereas where I live now is at least double that. so it would take even longer than 10 months for a profit to be earned.
I have recently been offered a round at 4 to 7 x value depending on how much i bought.
I will be building a virgin round and who knows I coud get 10x value we will see....
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its funny how people are unwilling to pay the going rate for work,but later when theyve built a round up expect to sell at a going rate ;D
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buy cheap sell dear ;D ;D ;D ;D
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And the going rate is??
" because the quality is PROBABLY much higher "
But who knows until you've bought it.
John
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The work is higher standard but it has massive potential for growth
£3000 is reached in a 4 day week with me being mithered on the phone 24/7 with calls from my other business.
Anyone who can put in 8 hour days can easily get it done in 3.5 days
All sensable offers are being considered
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so what level is a sensible offer for this work
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there is a reason why banks wont provide funding....
Bank manager: so what would you like the £30k business loan for Mr xxxx
Mr xxxx: er... a window cleaning round mate
Bank manager: what exactly will you be 'buying' for the £30k
Mr xxxx: er..... he might throw in some ladders, but he said everyone will
go onto wfp
Bank manager: so essentially you will be puschasing £30k of 'good will' from
the existing customer base.... no equipment, no van,
no business premises? and from my experience Mr xxxx as a customer of a window cleaner, i didn't like this wfp method of cleaning windows, it left all the windows wet, and spotty so we sacked our regular reliable fully insured, window cleaner and got someone else... good day to you sir!
oh by the way Fish&Chip shops aren't businesses... they are Gold Mines
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there is a reason why banks wont provide funding....
Bank manager: so what would you like the £30k business loan for Mr xxxx
Mr xxxx: er... a window cleaning round mate
Bank manager: what exactly will you be 'buying' for the £30k
Mr xxxx: er..... he might throw in some ladders, but he said everyone will
go onto wfp
Bank manager: so essentially you will be puschasing £30k of 'good will' from
the existing customer base.... no equipment, no van,
no business premises? and from my experience Mr xxxx as a customer of a window cleaner, i didn't like this wfp method of cleaning windows, it left all the windows wet, and spotty so we sacked our regular reliable fully insured, window cleaner and got someone else... good day to you sir!
oh by the way Fish&Chip shops aren't businesses... they are Gold Mines
Sure using this approach you will be lucky to get the time of day let alone any funding, however buying an established business is a different matter.
After Due diligence has been completed and reported on and with a business plan completed plus the legal side put in order by a lawyer, then, presenting for funding to a bank is a completely different prospect.
I'm surprised that many Window Cleaners on here don't realise that their business is also a gold mine. Sadly some would talk to their bank manager like the chump above, probably walking in wearing jeans and a T-shirt and wonder why they are not taken seriously.
A business that turns £30k that could be serviced by 1 staff member should return a profit of at least 25% per year. A business owner then can expand while the actual work is completed by others.
I understand that for most window cleaning is a "means to an end" but it also has high ROI which when tapped into can result in a great income.
And the going rate is??
" because the quality is PROBABLY much higher "
But who knows until you've bought it.
John
What sort of fool would buy anything blind, of course you would go through the accounts with a fine tooth comb, you would check out everything before you spend, plus you would have some legal documents drawn up.
This is not 2 guys down the pub trying to offload half a dozen customers he doesn't want.
If this was my sale I would sell it as a full business package. Work, Vehicles, equipment, company name, everything, the whole 9 yards. Even if it meant getting fresh signage.
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This point about good approach to the bank is very vaild. I have no good will van or equipment but i do have a very strong business plan on which the bank even in these troubled economic times is prepared to lend a 5 figure some of money on an unsecured basis . Two banks atually said my figures were borderline too conservative. However with buying a going concern that is largely goodwill then a realistic level of expectation has to be maintained. I belive that each industry has it own level of intrinsic vale as demonstrated in eariler posts and accordingly
value is linked to the industry. Had the accepted value been 1 x, 5 time or 100 times the round value then that is the level of investment expected as a rule of thumb. in this case the vendors have dropped price at least twice and are now open to offers. this is indicative of the fact that for good or bad that the original price especially now was a little ambitious to say the least
Also the best bit of advice i was ever given was buy cheap sell dear haggle and be realistic.
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Good post Sunshine Cleaning.
When you think about it, even though it is intangeable, the goodwill is the most valuable asset of a business. More valuable than the premises and all the rest..
You could go out and buy a car wash place but if it's in the sticks and the records show hardly anybody is using it then you would think twice about buying it.
If it always has a queue of people lines up outside, and it's profitable then that shows there is a market and people require its services.
Unless the standard of services goes severely down hill or prices rise drastically then why should these same customers not keep coming? They still need the services - they are not bothered if it's called Jim's car Wash or Jack's Car Wash - they just want their car washed.
The premises and the machines are of no value unless there is a customer base.
The fact that there's always a queue of people, the goodwill of the customers, that's what's going to bring in the money.
The bank manager knows that, but he needs to be convinced that you are capable of retaining the goodwill.
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just as a quick follow up to my long post, the vendor ahas not attually said what is inclued in the price is it just good will or is ther some commerical or a van for example. I am also unclear wether he emplys staff to wok the round if so then TUPE could raise its head all of which affects the price. Though due diligence should answer these questions it would be nice to know on what basis you are working from
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thats fair enough big j, i'll agree with what you say.
the value is what someone is prepared to pay, as has been said already a few times.
but clearly no one was willing to pay £30k, or offers around it, and no one will pay £21k for what its at now, sure there will be 'interest' in the round as a whole or even seperate bits. but honestly and seriously no one and i mean no one is gonna pay £400 for £42 of work domestic. or £750 for £84.
so together thats £126 of work a decent days pay for £1150 done monthly.
it's just not gonna happen is it ;D
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thats fair enough big j, i'll agree with what you say.
the value is what someone is prepared to pay, as has been said already a few times.
but clearly no one was willing to pay £30k, or offers around it, and no one will pay £21k for what its at now, sure there will be 'interest' in the round as a whole or even seperate bits. but honestly and seriously no one and i mean no one is gonna pay £400 for £42 of work domestic. or £750 for £84.
so together thats £126 of work a decent days pay for £1150 done monthly.
it's just not gonna happen is it ;D
I think you are correct EZ. Now that it is broken down it is less valuable. £42 worth of work just isn't sellable AT ALL.
Had it been for sale as a business (Van equipment name etc) it would be a different matter.
Maybe the mistake was to call it a round not a business.
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i think you are correct there also, the JOB LOT from the off with all you need and maybe some training, website van/ company name etc, like you say is a business
and a good one at that established for 6yrs, would sell i think quickly
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He's had plenty of offers but dropped his price 7k??
£750 a day cleaning domestics? I don't believe that bit either.
John
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I got it to about £200 per day.
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I got it to about £200 per day.
This is correct it turnsover around £200 per day and is cleaned by 2 cleaners in a 4 day week. There is plenty of room for expansion but i dont think that advertising it as a business for sale is going to make alot of difference as its only the work that is available for purchase
Im not including any equipment in the sale and no vehicle
However this is high quality work which i believe is worth £40k never mind £21k
but as my days get busier and busier i need my time to concentrate on my other business thats the reason for the price reductuion so that potential buyers can gain a better position when trying to finance the buy
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As i have reduced the price to around 7 x monthly turnover i should have my hands snatched off because anyone with a business accumine can see that a vendor offering a £36000 a year turnover for £21000 is well worth the price as you will make around a 75% margin within the first year and thats before you canvass more work
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I got it to about £200 per day.
This is correct it turnsover around £200 per day and is cleaned by 2 cleaners in a 4 day week. There is plenty of room for expansion but i dont think that advertising it as a business for sale is going to make alot of difference as its only the work that is available for purchase£200 for 2 men for 4 days isn't actually great work, I was under the impression it could be done by one man in that time.
Im not including any equipment in the sale and no vehicle
However this is high quality work which i believe is worth £40k never mind £21k
but as my days get busier and busier i need my time to concentrate on my other business thats the reason for the price reductuion so that potential buyers can gain a better position when trying to finance the buy
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£36k turnover, not profit, worked by 2 wc's 3.5-4days a week
£18k a year each before tax (if you split it down the middle)
-fuel
-insurance
-equipment
-bad weather
-holidays (but you couldn't afford to take one)
what you gonna be left with? to run a home and family?
it's worth x3 cleans mate, be honest with yourself it aint that good its probably spread out all over the place and not compact, nice try though cant fault you for that.
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hey the guy who is selling this round email me your details at compuaid@ntlworld.com
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I got it to about £200 per day.
This is correct it turnsover around £200 per day and is cleaned by 2 cleaners in a 4 day week. There is plenty of room for expansion but i dont think that advertising it as a business for sale is going to make alot of difference as its only the work that is available for purchase£200 for 2 men for 4 days isn't actually great work, I was under the impression it could be done by one man in that time.
Yh this is done in 4-5 hours and is compact-At the same time i am running another business so when you actually think of the potential if worked 8 hours a day 5 days a week its good work - there is lots of potential estates go canvass which i already have plans for which will be passed on to the buyer - I have also got to squeeze in appointments as i have 9 interested parties wanting to view the work
Thank you for your input
Best Regards