That is true, reality is people and things change. Customers move, businesses go under, people lose jobs etc. It all comes down to branding! I would rather have a business high up in the organics opposed to a business with a customer file that is on page 6 and the simple reality is we are running window cleaning companies. This is a luxury business, people want windows cleaned but when it comes between food on the table and clean windows…well you know the rest. Simple fact is be thankful for every customer, every penny.
six months gross income is about the norm for most service businesses. You can get more then that but you will have to wait for the right buyer. Most people will list their business for 9-12 months gross but after negotiations, 6 months plus or minus a month or two is what they usually get. If it’s sold under terms they usually get around 8-9 months gross. If its a cash deal, closer to the 5-6 month range.
You cant value your business until you know what the true profits are. Dont confuse profits with revenue. Profits are what would be left after all expenses including what you pay all your employees, including someone to do what you as the owner do.
Most times sellers want to value the biz based on their “sales”. But think of it this way. If you have $100,000 in sales per year but it would cost you $90,000 to run the biz then your biz value is based on that remainin $10k.
Compare that scenero with a biz with $50,000 a year in sales but expenses of only $30k per year. That biz generates a profit of $20k per year.
Of the two biz examples above which would you rather own. Which is worth more?
The big thing we as window cleaners forget to factor in is how much it would cost in payroll expense to pay someone to do what we as the owner do.
Bottom line is most window cleaning biz are not worth what the owner thinks they are worth.
