Howdy fellow window cleaners. I have built a good business over the past 14 years and I am planning my financial future. Eventually I will transition from managing it to finally selling it. Without paying a broker $1000 just to estimate my businesses value, can someone tell me what the going price is for selling a business? One year’s annual revenue? More or less? Surely there are a lot of things to consider but if someone could point me in the right direction I’d appreciate it. Thanks!
we bought a business from a solo guy for $1000 down and 20% of ongoing sales for 2 years not to exceed 25,000 (though i suspect it won’t be more that 15,000-20,000 when all said and done)
4 Likes
Thanks to both of you. In my particular case I think the avg. net profit times 3-5 yrs. sounds very reasonable.
and of course the money you pay yourself is not profit. profit is what is left after payingall expenses including EVERYONE who works in the business.
Where are you located?
Richmond, VA
Following. Always interesting to discuss the variables that go into establishing value for service businesses.
1 Like
If you have no contracts the business for sale will not be much at all. One years worth of average net worth should work for a sale price. But if you do have contracts price could go up dramatically. Aaron
How’s this tracked and reported?
we have a separate phone for his number, any business that comes in from that phone (or if someone calls our number and mentions they are coming from him) i put his name before the customers name in the calendar, then at the end of the day i total all the work that came from his business and divide by 5 and note that in it’s own column. i keep a running tally so we know how much we owe him and after the month is over we send him a check.
here is a screenshot of my monthly spreadsheet, sam’s business is in the last two columns
4 Likes
Thank you. That’s awesome how detailed you guys are with the ongoing transaction.
my integrity is at stake 
5 Likes
Is that 20% of just new sales that come in, or 20% of his existing customer base every month in addition to any new sales each month?
20% of all sales that come from his business, his most consistent are the monthly stores we do, followed by a realtor connection he passed on to us, (mostly new to us/him homes but since they come through his connection he gets the credit) followed by his customers who call his number and get the message we recorded together filling them in on the transition. not every one of his customers uses us since our price is higher than his was, but those that do he makes more in a sense since we charge more.
2 Likes
Awesome, how much was the original route value?
~ $500 a month
1 Like
Do you ever foresee this arrangement cutting into your hypothetical maximum profits?
Edit: never mind I just read it is not to exceed 25k
2 Likes
or 2 years, which ever comes first
1 Like
HI Luigi…PM me if your business is still for sale. I’m in the Richmond / Chesterfield area and am looking to buy.
Thanks!
Aaron
AWC
8049160473
No ones going to pay a year+ avg revenue. Realistically you’re looking at 3-4 months revenue.
2 Likes
