Selling a business

[Jameshow]

Maybe you could train someone to take over? Worth a shot?
Whereabouts are you?
Anyone want a career change?

 

[Cycleops]

Maybe you could train someone to take over? Worth a shot?
Whereabouts are you?
Anyone want a career change?

Probably more value in that rather than selling?

 

[albion]

Got to be worth something for someone with a plumbing skills to take on, but £12k turnover won't provide a living wage for a full time business. The only hope is to grow the business. Difficult to put a figure on that but it wouldn't be huge.

Self employed start on zero wage. Sometimes it stays near zero.

 

[bikingdad90]

@Fastpedaller, if you were to start up the business from scratch, what would the outlay be? That would give you a base figure for a sale, assuming you’d giving away the client base for free.

 

[Gunk]

With respect it’s more of a self employed job rather than a business, the value is just the assets and very small amount of goodwill.

 

[Cycleops]

@Fastpedaller, if you were to start up the business from scratch, what would the outlay be? That would give you a base figure for a sale, assuming you’d giving away the client base for free.

Isn't it the other way around? The value is in the client list. 'Tools of the trade' would be purchased separately if the purchaser was not running already this type of business.

 

[nickyboy]

If I'm buying this business, what am I buying?
What is there that means the people that you did the plumbing for will want the plumbing done by whoever takes over your business?

If it's just a list of people who you have done plumbing for there isn't value in this. But if there is something that means they will come back to whoever takes over your business then there is

 

[Fastpedaller]

If I'm buying this business, what am I buying?
What is there that means the people that you did the plumbing for will want the plumbing done by whoever takes over your business?

If it's just a list of people who you have done plumbing for there isn't value in this. But if there is something that means they will come back to whoever takes over your business then there is

Many years of providing a good service from a recognisable company - the new owner will be able to contact the existing customers stating they have taken over the reins. I will also be able to 'introduce' them as my successor. The customers trust my judgement and service, so that must be a good start for someone to springboard off.

 

[Gillstay]

I know of a similar scenario and we all thought it would not sell. To our surprise it did to a young chap getting started.

it survived a long time afterwards as well, but he did not get a huge sum for it. You have nothing to lose by trying though and colleges will be sending out trainees soon as the academic year ends.

 

[Slick]

Many years of providing a good service from a recognisable company - the new owner will be able to contact the existing customers stating they have taken over the reins. I will also be able to 'introduce' them as my successor. The customers trust my judgement and service, so that must be a good start for someone to springboard off.

Yip, it would be a great start for someone, but worthless unfortunately when it comes to estimating the true value of any company.

I'm not saying your business won't sell, but anyone with the required gumption to run a business would save themselves a few quid by setting up against you when it becomes common knowledge you want out.

 

[Slick]

I know of a similar scenario and we all thought it would not sell. To our surprise it did to a young chap getting started.

it survived a long time afterwards as well, but he did not get a huge sum for it. You have nothing to lose by trying though and colleges will be sending out trainees soon as the academic year ends.

Not a bad shout, if he could mentor a young guy to step up. Could work.

 

[SpokeyDokey]

I note all the above as being sensible comments. Yes I have long lists of repeat clients over many years. I ought to add I'm not expecting a huge sum..... Markemark suggests multiples of profit as a guide and up to 3x as being not a million miles away. I'd be delighted if I got more than 10k for it TBH.

If you have genuine repeat business then offer your customer base to a competitor.

But, there is a huge difference between genuine repeat business (maintenance contracts etc) and customers historically using you on an occasional basis.

The former may have a sale value and the latter none at all as the intrinsic value is you. And with you out of the equation...

 

[nickyboy]

If you have genuine repeat business then offer your customer base to a competitor.

But, there is a huge difference between genuine repeat business (maintenance contracts etc) and customers historically using you on an occasional basis.

The former may have a sale value and the latter none at all as the intrinsic value is you. And with you out of the equation...

Hence if the OP is looking to get something out of this maybe the best approach is to offer the "buyer of the business" a handover period where the OP intros the new person, works with them on some stuff and then gently fades into the background over time

 

[straas]

£10k profit on £12k turnover is unheard of!

 

[Fastpedaller]

£10k profit on £12k turnover is unheard of!

Most of my income is from my labour. I'd have to look at the actual figures - may be nearer 15k turnover.
I did a search for businesses for sale, by way of a little research. After I saw one business (with premises liability as well) which had 135k turnover and 10k profit, I concluded my business was a better proposition!