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AuRavelling79

  • Posts: 14448
In the old days a one man band might typically sell up for 3x monthly income his round value and flog his van if he owned one. So a guy turning over say 2K a month might walk away with 5 to 10K. Not much good.

Now you can sell for more and if say you were doing 4K a month with a reasonable system using the above formula but upping it to 5X you might get 25K to 30K. Better, but not much in the great scheme of things.

But other options spring to mind ...

Keeping the cream and continuing part time, reducing as the years go by.

Renting your round out at say 20/25% (but as the years go by and the new guy gets a relationship with the customers may be you are vulnerable to him taking it off of you or him simply walking away as he gets "better work" and you having to switch "your" customers to someone else.

Could you franchise a small round?

Employing someone full time and you manage it and go out with them occasionally to keep contact with your customers.

Other ideas?
"Get some (perspective). Go and visit someone in hospital or a home." - G. Griffin

Gomo

  • Posts: 2880
I suppose it depends on your financial situation.

If you have done everything right, I.e got a nice pension, house fully paid off etc I suppose I would flog it for what I could get and truly retire.


I think renting it or employing is really semi-retirement.

How about employ a part timer say 3 days a week and get it done between you in those 3 days.

Or just employ a full timer and just help out occasionally to cover holidays, bad weather delays etc.

Rent it out
Franchise it

Build a bigger business, how about getting 2 vans out, 2 full timers just under vat and have yourself a nice little earner before flogging say 10 years down the line when you truly retire.

8 weekly

  • Posts: 2258
The only comment Id make is with regard to employing someone. Your prices need to be good so that you can employ properly a good worker. From day 1 Ive always priced with a view to employing and therefore a good margin has been built in.

60 a day, self employed cash in hand (around here) will never get you decent people. But most have only priced at a rate that allows that sort of arrangement.

Dry Clean

  • Posts: 2245
Unfortunately if you're a one man operator and cant walk away from a round then you're not really in the position to retire,
your only option would be to sell off the harder work and keep a small amount of the easier work to top up your pension/savings.

Smudger

  • Posts: 8331

good thread - this is the problem - the worth of the round is subjective, but i wouldn't be selling it as a round i'd pitch it more as a business with an established customer base and income - they get it lock stock and barrel - this would be more attractive  - its a clean break (other than showing the new owner the ropes) and should command a better price  - id try a price of 1 years turnover

Darran
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

www.oddbodscleaning.co.uk

8 weekly

  • Posts: 2258

good thread - this is the problem - the worth of the round is subjective, but i wouldn't be selling it as a round i'd pitch it more as a business with an established customer base and income - they get it lock stock and barrel - this would be more attractive  - its a clean break (other than showing the new owner the ropes) and should command a better price  - id try a price of 1 years turnover

Darran
The formula that I'd heard in the past was 3-5 years profit was the right range for an established business. Probably that's going to be about a year's t/o coincidentally. To calculate profit on a one man round you'd obviously add the cost of a man to do the work.

Smudger

  • Posts: 8331
i knew there was a formula somewhere but no idea what it was !


Darran
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

www.oddbodscleaning.co.uk

Tom-01

  • Posts: 1183
Take two days worth of work out to give to a franchisee, whilst working three days a week yourself.

Those two days you're not working use to canvass to build up your franchisee to a full round.

Once he's there or nearly there take another two days work to give to franchisee number two. You've then got four days to build him up whilst still working a day a week yourself. Plus you'll be getting the franchise royalties.

Then do the same with the last day you have this time using five days to build him up.

Have a proper franchise business set up to do it. Might be worth speaking with Ian Lancaster.

dd

  • Posts: 1772
It highlights an issue for the self employed. If you really want to be able to retire you will need to have paid a substantial monthly premium in to a pension/ISA for 30 years or more, to give the kind of income most would want.

Other options are to release a large sum from your house by downsizing, or some may be fortunate with an inheritance.

brynley

  • Posts: 274
I have been thinking about this for the last year as I plan to retire in 4 years, I have agreed with a neighbour who has a young family and helps me out,  he will rent my round off me for 5 years and after that it is his , he is not in a position to pay out right and I will earn more money  than could expect to earn by selling up, I think it is a win win for both of us and I think the customers will also benefit, he is a hard worker , ambitious and my customers like him.

dd

  • Posts: 1772
I have been thinking about this for the last year as I plan to retire in 4 years, I have agreed with a neighbour who has a young family and helps me out,  he will rent my round off me for 5 years and after that it is his , he is not in a position to pay out right and I will earn more money  than could expect to earn by selling up, I think it is a win win for both of us and I think the customers will also benefit, he is a hard worker , ambitious and my customers like him.
Be good if it works, but can you really predict what your neighbour will want to do in 4 years time?


Gomo

  • Posts: 2880
I think you would be mad to sell it.

Employ/franchise/rent it to the right person and you could have an extra income stream until you croak it. If you set it up as a ltd company you could leave it in your will to family.

alank

  • Posts: 366
Never get rid of the Golden goose.

brynley

  • Posts: 274
I know 4 years is a long time and things could change, I can't leave it to my 2 sons as one is a high flying teacher and the other has adhd and could never run a business, I have taken the lad under my wing and the fact that his present company is making big changes that is not to the benefit to it's employee's.
we both believe that it will be the best outcome for both of us

dazmond

  • Posts: 16115
i wouldnt want anybody but me cleaning my work.if it comes to having to pack it in due to ill health id just flog the lot and have nothing to do with window cleaning again!

my customers dont just pay me to clean their windows,they pay me for a quality job,trustworthiness and reliability... ;D

ill carry on until i croak it if im fit and active enough(even if its only 3 mornings a week!)...

im virtually part time as it is at the grand old age of 46..... ;D

i hope  ive got another 30 years left window cleaning.......
price higher/work harder!

paul alan

  • Posts: 1667
I hope I've got another 30 years left on the planet

james peters

  • Posts: 265
i wouldnt want anybody but me cleaning my work.if it comes to having to pack it in due to ill health id just flog the lot and have nothing to do with window cleaning again!

my customers dont just pay me to clean their windows,they pay me for a quality job,trustworthiness and reliability... ;D

ill carry on until i croak it if im fit and active enough(even if its only 3 mornings a week!)...

im virtually part time as it is at the grand old age of 46..... ;D

i hope  ive got another 30 years left window cleaning.......

I agree with this . I am 46 also and plan to work until I cant carry on .
I enjoy working,  but my days are around 5 hours no more than 6.
when It gets to much I will just do a few hours a day . I see it as a way to stay active and something to focus on.

Marc Stock

This is why i am working now to build up my business into a going concern that doesn't require my day to day input.

I am nearly at 55k turnover a year now. My target of 60k is now coming into sight. But its getting harder and harder to get the correct sort of work for one person fitted into the schedual. Its getting tight and i am also getting very bored during the week. I normallt have a day off halfway through the week and thats happening less and less.

Once i hit my 60k target; its another van and a full time employee. Then my job for the next 3 months  will be canvassing; marketing and growing the work to my stage 2 growth to 80k  a year.

Then after that its onto 120k a year with two vans and two full time window cleaners.  I hope to be at this 120k stage by the time i am 40 years old. I dont want to be working at 50. So if i keep doubling my business growth every two years from that point forward i should have a good business i can pass onto my children should they want it, or just keep reinvesting in the business all the way through my retirement

Johnny B

  • Posts: 2191
I am 56 now and have no plans to completely retire ... ever.

My aim is to keep working full time until my kids are no longer financially dependent on me, then I will gradually reduce my working hours down and do 2 or 3 days a week. Any excess work that I can't do I will either sell, rent out or give away depending on my financial needs at the time.

John
Being diplomatic is being able to tell someone to go to hell in such a way that they look forward to the trip.

dazmond

  • Posts: 16115
This is why i am working now to build up my business into a going concern that doesn't require my day to day input.

I am nearly at 55k turnover a year now. My target of 60k is now coming into sight. But its getting harder and harder to get the correct sort of work for one person fitted into the schedual. Its getting tight and i am also getting very bored during the week. I normallt have a day off halfway through the week and thats happening less and less.

Once i hit my 60k target; its another van and a full time employee. Then my job for the next 3 months  will be canvassing; marketing and growing the work to my stage 2 growth to 80k  a year.

Then after that its onto 120k a year with two vans and two full time window cleaners.  I hope to be at this 120k stage by the time i am 40 years old. I dont want to be working at 50. So if i keep doubling my business growth every two years from that point forward i should have a good business i can pass onto my children should they want it, or just keep reinvesting in the business all the way through my retirement

sounds awful to me.......too much stress involved for my liking...i dont handle it very well and it would  affect my mental health.i need to keep things simple or itd drive me nuts.........
price higher/work harder!