NationalWindowCleaningDirectory.com Forums

buddythewindowguy · Guest

I am soon to retire and have approx. $3000 worth of monthly commercial accounts and $500 per month of residential work. Now I realise I won;t be able to live long on the proceeds from the sale but would like to get a fair value for it. Any suggetions?

Steve · Regular Member Joined: 10 Dec 2004 Posts: 317

Are you selling the accounts only or all your equipment also? Ladders, poles etc...

How certain are you that you accounts will stay with the new owner?

Is your business a single person operation or do you have employees?

Just some questions to consider in the decision on how to price.

Steve

buddythewindowguy · Guest

All of my equiptment which I estimate to be worth less than $500 (I'm not including my truck).

The accounts are long standing accounts, most held since they opened their doors many years ago and most of which will stick with the new owner since there are no other long term reliable operators in the area.

I have approximately 60% market share and could grow it more if I chose (and might) if the selling price is worth it.

Steve · Regular Member Joined: 10 Dec 2004 Posts: 317

It's a very subjective task to valuate a business.

Some points to consider though:

1) Window cleaning franchise operations sell for anywhere from $17,500 to $35,000. Of course you get the power of the brand name and a proven success formula.

2) You can't place a value on "blue sky" (in other words accounts in your area that you could get but don't have) because a competitor could come in and get them also.

3) Your experience to the new owner shouldn't be underestimated. Since you know all the people and could help someone get started quickly, you might consider your time and price your business in a way that would be attractive to someone that wants to be in business, then offer your service to them as a consultant for 90 days. at an hourly rate equal to what you are making now.

Example: If you are making $25.00 hr now consider selling the business for 90 days worth of your time $25.00 hr x 40 hrs = $1,000 x 12 weeks = $12,000

If your business is turning $3,500 gross per month or 42,000 year then $12,000 is 28% of gross revenue. Offer the new owner a 12 month payment plan so he can start making money right away. The new owner can benefit from your experience and you can draw $1,000 per month for the next year.

You can plug any number into the equation you want, but that's my opinion.

Good luck!

Steve

buddythewindowguy · Guest

Thanks Steve!

I guess I won't be buying that beach house in Florida anytime soon Wink

laban · Posted: Fri Dec 24, 2004 9:07 pm Post subject:

Hi Steve,

Just curious how you decide that the business is worth just 90 days worth of time?

Buddy, I would not suggest selling short for any reason, unless there is some extenuating circumstance. I'm sure you worked hard to build that window cleaning route.

You can ask for any amount and *potentially* get it, depending on the market. The value assigned to the business really is determined by the buyer. Of course, you do want to be able to let people know its up for sale, so you need some asking price to start with, so start high!
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Steve · Regular Member Joined: 10 Dec 2004 Posts: 317

Guest · Posted: Sat Dec 25, 2004 12:43 pm Post subject:

Hi Steve,

Definitely no offense taken, business is not personal to me.

It's just as you said, "in the end the business will be valued by whatever someone is willing to pay for it."

My point is simply that if he's going to list it somewhere and put an asking price down, he should start high, that's all.

panther · Guest

hi im lenny from ft worth texas and i started panther city windows{panther city is old nick name for ft worth} a while back and i only have commercial accounts. i would like some residential accounts and what's aq good way about getting some?

panther · Guest

i'm sorry here is my e-mail if any private replies. panthercitywindows@yahoo.com. thanks!

Steve · Regular Member Joined: 10 Dec 2004 Posts: 317

timswindow · Guest

Hi lenny,
I'm a residential specialist, and I've found any number of ways to build a residential base. Such as...

1. Talk to everyone associated with the jobs you now have. Make sure they all know you're going into the residential business. Hand out lots of cards, tell them they can now enjoy the wonderfully clean windows you give them at work, in their privat homes. Offer them discounts for referrals.

2. Go to a local printer and have them help you develop an attractive door hanger. You should be able to get a thousand of them for a couple hundred bucks. Then study your area, looking for upscale neighborhoods where they'll allow to hang them. After you start getting some jobs, put doorhangers on the houses of the ten closest neighbors, even if you've left them there before. The more they see your name, the more likely they are to call. It's a good idea to print a couple of coupons on the doorhangers as well.

3. Do some charity work. Contact Habitat for Humanity and see if they've got any houses going up in your area, and volunteer to do the windows for free. While you're there, give out plenty of business cards.
Offer to clean the windows at local churches for free, or at a discount, and ask them to let the members know thet you've done this for them. (I would make sure I wasn't undercutting their regular window cleaner, if they have one.)

4. Knock doors. Usually the best way to sell your service is to sell yourself, face to face, to prospective customers. Be polite and well-groomed, and offer to give them a free estimate. Understand that you won't always close the job immediately, but that they may call you back later. Whether or not they accept your bid, ask for referrals. And make sure always to leave a good taste in their mouth about you and your company.

Hope this helps.
Good luck!

APaneintheGlass · Posted: Thu Feb 17, 2005 12:16 pm Post subject:

I'm going to take this one step further from what Tim had said...Charity work.
We are big into charity work, look into your local chamber of commerce and see if they have an annual auction. Auction off a window cleaning, we have (you can email us for help on that if you wish). It also gets your name out there. Chambers are there to put money back into there community. Great cause AND they help you, the business owner.
Also call schools and ask if they have auctions, we have one coming up with an elementary school who wants to buy new playground equipment.
Just a couple of ideas for you.... Smile