Need much advice, how much should I sell my modest window washing business for?
At least $10.
Or maybe higher depending on equipment, customer list, etc.
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It is a modest business which made roughly 23000 in 2015.
Unless you are selling a business as turn key i.e: fully loaded van with signage, ladders, pure water set up, poles and a years worth of supplies along with the next years worth of work already scheduled and on a contract with a web site and company phone number.
Then your selling an idea or a customer list, and with no contracts and only 23000 I assume thats profit and not turn over, How much were you hoping for? How much would you invest for a potential 23000?
Unless you are selling everything… business name, logo, vehicles, tools, marketing and full client list you may get some offers for residual payments. It’s hard to get up front cash in hand unless you have contracts or monthly work that can just be handed over.
Yeah you did 20k last year but maybe only 12k of that will want reoccurring business next year. So offer sale of client list as a percentage per job done for a certain amount of time. Just my experience on the matter that has worked out.
Sale price probably around 2 months gross sales.
There would need to be a lot more information provided before it would be reasonable to estimate a selling price.
Here are two super simple ways to establish value:
1: $23,000 divided by an average ticket (average revenue per job) lets say is $200 equals about 115 customers
With an average CAC (customer aquisition cost) of $50… I would need to spend $5,750 to aquire an identical amount if revenue.
2: After paying all expenses and yourself a reasonable salary lets say that your net earnings were 30% of gross sales…($23K times 30% = $6,900)
Because there are probably no systems or automation or stability (not neccessarily, but probably) in a company of his size the multiple would only be about 1
Long story short… The business is worth (based on my entirely fake assumptions) somewhere in the neighborhood of $5,750 - $6,900 but that all depends on who is a ready and willing buyer in your market.
Of course you could always find a schmuk to pay more. Good luck!
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Maybe a G for the customers. Equipment would add a bit more value.
