Need to skip town—Idea to turn my business over FAST

The Office Business
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It’s not that the services are cheap here, we’re charging $20+ per window. But do you know how expensive it is to live here? Everything costs more. Even our food even though it’s all grown, slaughtered, etc here in CA. If you’re not netting at least $80k, you’re going to really struggle to make ends meet here. In most of southern California, studio apartments are going for nearly $2k per month. That’s just one example. Yesterday, I just paid $3.80 per gallon for gas. The water bill for my 1700 sq.ft house is almost $500 per month. The list goes on.

You do what you want, but this move has disaster written all over it. It’s happening fast, you’re walking away from something that seems to be working, and you’re going to partner up and split revenue, salary, profit with your friend and moving to an even more expensive area than Portland, which I know is expensive too. Just my 2 cents.

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This is why so many Californians are showing up here in Texas. Last count had the average being 100k per year. Just gassed up at 2.04 per gallon and my 2400 sq ft house had a $180 water bill.

Don’t know why or how anyone stays there. Beautiful place for sure, but at what cost?

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these guys have no skin in your game, I’d heed their advice.

If you’re married and have children it will put a tremendous strain on your relationship.

California is a whole different country almost it’s stupid expensive. If you do go I’d wait till you had some serious cash saved.

Remember something I heard once when emotions run high judgement runs low. The best way to avoid major disasters is to never make knee jerk reactions that impact you so greatly

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Been here my entire life. We’re fortunate, my wife and I, to do well enough to be comfortable here. I’ll probably retire somewhere else but my kids have a ways to go before being done with high school. We’re not going anywhere until they’re done with school.

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Thanks, Mike, for the serious warning. What you’re saying all makes sense–it’s kind of you to make sure I know before I go. I can’t say you didn’t warn me. Thank you for caring.

Hi Richard, thanks for another reply.
Answer: I would be taking my tools, website, brand, reviews, and software to LA. Not customers. Plus the operator (myself).
Right now I’m talking with someone who might be able to take it over, though, so we’ll see which way it hopes. I hope the latter and it can stay here (where I feel it belongs).

Very true, however, I’m pretty good at overcomplicating (as you probably can see).

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Update

I’ve been talking to prospective take-over who seems interested, and I like him, so we’ll see what happens.

I’ve spent quite a few hours trying to count up assets and figure out what the business might be worth.

Online Calculator
I can’t upload the screenshot, so here’s a link to see it.

Okay, but this calculation did not factor any assets, it’s simply based on revenue.

So I tallied up all the assets (most all of the tools are listed at half price, sometimes much less than half, and a few things just 2/3 of what I figure I could craigslist it at).

When it was all said and done my discounted assets (minus debt, i.e. remaining loan on the van) was about $19k.

Some of the big items:

  • a 5 gpm, 2,700 psi, 20HP Honda, turn-key, pressure washer on hitch carrier I figure could sell fast at $3,000 and listed it as $2,300
  • The pressure hose, surface cleaner, accessories I have about $1,700 in but listed for $550
  • SkyVac 85 Elite 240V 3 Motor System, paid $3,713.93 and listed for $2300 (great for maintaining GutterStuff in the gutter cleaning capital of the US)
  • Spent $4k on window cleaning tools and supplies at WCR (and others) and listed for $450
  • Spent $1,400 on Titan electric hose reels (but installing costs more) and listed $600
  • 50+ reviews
  • clean books with a good bookkeeper and system
  • CRM, Rbid, etc. are going strong (new website almost launched, a few bugs yet to fix)
  • WFP’s: 40’ Xero Ultimate, 35’ Pro, 18’ phantom, and a bunch of brushes

The lesson I’m learning from this is it’s hard to value a new LLC as I’m still trying to separate myself from the business (for the first 1.5 years the business was me). Since I don’t have this established with full-time techs, admin, and sales–the business still is me (though now there is at least LLC credit building).

Experience is a good teacher. I think I’m learning (with your help).

Do you think this business could be sold for a cash price? If so, how much? I realize some have already answered.

Or do you think—like others here—that only equipment and client lists can be sold at this state?

The issue with selling for the cash price is the van loan is still under my name, not the LLC, although the bank just approved the LLC to finance it. So I hope that changes in the next couple of weeks.

Thanks for reading, guessing this post is ending its useful lifespan, and I’ve benefitted from this exchange.

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4k on window cleaning tools??What exactly did you buy for 4k?

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Outcome:
Turned out good to move sooner than I was originally thinking, just got done pressure washing a parking garage in Los Angeles, as we moved this weekend.

Looks like I worked out a deal with the with the guys who were thinking of taking over my operations, I simply get a cut of the business they do from the clients I have. My MJB reviews and tools are coming with me to Los Angeles (still need to complete the moving process).

So yes, you all were right, selling my client list was the way to go. All of your input helped me realize this sooner than I would have otherwise, I believe.

Thanks, again, for your time and thoughts.

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