GoodluckChuck
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Hello all,
I have run my own business for 12 years and for the last 8 years
have been installing epoxy coatings. I want to move on to something
else and looking for feedback on the best way to sell it.
As a rule there is not a lot of repeat business. Customers are not put
on a schedule for future business as in carpet cleaning, snow removal,
lawn care etc..
I did talk to a business broker and he said people looking to purchase
a business want to see a cash flow due to repeat business. Not having
much repeat business it would be hard to find a buyer because they
want to see a dependable cash flow.
Part of the value of the business is the equipment and tools that would
be purchased by the buyer at fair market rate.
The most valuable thing is my knowledge of
the business, quoting and installation the different types of coatings.
Basically how to make money on jobs and stay out of trouble.
My proposal would be I charge them a lump sum for equipment and basic training.
Any training after that would be pay as you go. For example, training them
on real jobs that they get, help in quoting jobs, etc...
I would charge them a daily rate for the additional training.
I have never sold a company before and talking to the broker he said
it would be a hard business to sell. So I am thinking this is one
way to do it.
Any other ideas ?
Besides the equipment and your knowledge, what else would they be buying?
Does your business have a consistent source of new customers?
Are there any employees or contractor deals in place that would be difficult to replicate?
Can someone else hop in and run the business easily without having to restructure your systems for bookkeeping, admin, marketing, etc.?
These are some areas I'm currently focusing on so that my businesses are sellable. In my construction business, perhaps the most valuable asset we have is a lead gen system that brings in enough leads to maintain and grow the business. Since that is the most common weak point of this type of business, I consider it a strong selling point.
In any business, the buyer wants to understand what they would need to do to make the business operate without you. If you can figure that out ahead of time, then you'll have something that can be sold. If you are crucial to the operation of the business, then you better sell yourself with it or nobody will buy it. I know people that agreed to be an employee on a salary for a year or two after the sale to help make sure the transition went smoothly.