ilovegod2011
New member
@2stupiddogs Same here. Where do we find these businesses?
Selling Junk Removal Business after 4 years
- Thread starter alf
- Start date
-
- Tags
- startup sweaty startup
jerrythemaverick
New member
@ilovegod2011 As above 
@jerrythemaverick Yes, how do we find a business to buy without breaking the bank and taking huge risks?
I retired a couple of years back and have lots of time to spare with a small capital to invest. I have been looking for a business to buy or start, but couldn't find anything suitable..
I retired a couple of years back and have lots of time to spare with a small capital to invest. I have been looking for a business to buy or start, but couldn't find anything suitable..
jerrythemaverick
New member
@ron3865 To be clear, investing in small businesses is relatively high risk for potentially high rewards.
There are several ways to mitigate the risk. Purchase an established business rather a startup. Conduct a proper due diligence investigation. And when possible, shift some of the risk to the seller by having them carry seller financing or receive performance-based pay after the sales.
There are several ways to mitigate the risk. Purchase an established business rather a startup. Conduct a proper due diligence investigation. And when possible, shift some of the risk to the seller by having them carry seller financing or receive performance-based pay after the sales.
russel7507
New member
@jerrythemaverick When does a broker like yourself get involved on the buying side? Do you help look for businesses that might fit the buyers risk appetite and type of business they might want to go into (like a real estate agent sourcing and attending open houses with a client)?
jerrythemaverick
New member
@russel7507 More than 90% of brokers work exclusively for sellers. I am one of a few brokers that also represents buyers, working on a retainer basis.
I help buyers find and compare opportunities, appraise the value, negotiate terms, make offers, conduct due diligence, get financing, and close the sale.
Around half the time I start helping my clients in the search phase, and other times they run the search themselves and I come in after.
I help buyers find and compare opportunities, appraise the value, negotiate terms, make offers, conduct due diligence, get financing, and close the sale.
Around half the time I start helping my clients in the search phase, and other times they run the search themselves and I come in after.
haileysway
New member
@jerrythemaverick Where are you based?
jerrythemaverick
New member
@haileysway I’m in Utah but work with clients across the US. My contact information is in my profile.
@jerrythemaverick Do you run proper due diligence investigations?
jerrythemaverick
New member
mackhernandez
New member
@jerrythemaverick Is that 100k net? I have a small business that I’d like to get out of at some point. I’m at year four and am doing 40-60k net consistently for around 12 hours of work per week.
I’m hoping to scale it up at some point where it could be my full-time job, but if that doesn’t happen I feel like I may not want to do it forever. I’m in the same kind of situation as OP where I have consistent clients but no contracts.
I’m hoping to scale it up at some point where it could be my full-time job, but if that doesn’t happen I feel like I may not want to do it forever. I’m in the same kind of situation as OP where I have consistent clients but no contracts.
jerrythemaverick
New member
@storm1485 It sounds like your business is paying around $85/hr.
If your business is home based and doesn’t rely on your amazing personality, that could be a sellable little business to supplement your buyer’s income.
The business might be sellable for $50k to $100k under the right conditions. It could also be unsellable if not.
If your business is home based and doesn’t rely on your amazing personality, that could be a sellable little business to supplement your buyer’s income.
The business might be sellable for $50k to $100k under the right conditions. It could also be unsellable if not.
@jerrythemaverick Thanks
@storm1485 What's your business?
dyfutballer
New member
@alf I’d skip the broker and DIY. advertise it for sale on your local classifieds and through your own network — tell everyone you know from the barber to the accountant .
You might be able to get $10k plus 10% of revenues for a few years. Or a fixed amount paid out over a few years. In this way you , the seller, are effectively financing the purchase. You can have a lawyer write up the sale contracts including a promissory note with security against the purchaser’s personal assets and the 10k of equipment.
You might be able to get $10k plus 10% of revenues for a few years. Or a fixed amount paid out over a few years. In this way you , the seller, are effectively financing the purchase. You can have a lawyer write up the sale contracts including a promissory note with security against the purchaser’s personal assets and the 10k of equipment.
georgewaini
New member
@alf Those contracts are useless… contract are worth something when they give you consistent recurring revenue (cleaning company or lawn care)
The company doesn’t HAVE to give you money if they don’t need your service so they won’t sign like that.
Same as a tree service company. There’s no guaranteed that you’ll get business the next week so nobody would put that in the purchase price.
Find a way to get recurring and consisten income and you’ll greatly increase the value of the company.
The company doesn’t HAVE to give you money if they don’t need your service so they won’t sign like that.
Same as a tree service company. There’s no guaranteed that you’ll get business the next week so nobody would put that in the purchase price.
Find a way to get recurring and consisten income and you’ll greatly increase the value of the company.
@georgewaini That’s not necessarily true. For instance a towing business with dozens or hundreds of contracts to tow for parking lots has more value than a towing company that has similar revenue and zero contracts. Determining value could be a challenge though.