Thinking of selling up - any advice?

[theanalyst]

well guys. Due to health issues I am planning to hang up the tools and go to work for a friends computer firm (yes I am qualified!) . The money wont be as good and it is a risk but I am starting to struggle with some jobs and either need an apprentice (not going this route) or to get out while I still have reasonable health (got bad tendonitis in both elbows and standard other stuff like plumbers knees etc!).

So my question. Is the business I built up over the last 6 years or so worth anything? We have an established customer base and on the books (potential for more!) make 25k per year net profit (wages).

I have two choices, either turn my phone off or leave a referral answerphone message or try and sell as a going concern which I would much rather do after putting so much effort into the business.

There are new job calls most days, some large some small but I have lost interest the last 12 months or so and the name is well established in my area (Sheffield) and could do much more business if people were pushing for it as I turn away a lot of jobs due to the aforementioned health problems.

I have a professional website that brings in some calls and an established profile on checkatrade .


Any advice appreciated chaps!

 

[theanalyst]

One thing is how would I price it? I am essentially selling my website, customer list and phoneline I guess. Turnover based I have no idea what is a fair price to advertise it at?

 

[SimonG]

Good luck with the new venture.

Think there was a post on this in the past and although you might not like to hear this all you have is a list of people you have previously worked for and no gaurantee of future returns.

I'm sure your list is worth something but not sure how you profit from it.

Maybe an initial fee for the list and so much, say a fiver, if there are any future works.

Difficult one.

 

[SimonG]

Ah well that's a bit different then if phone details and web site.

Have you put the question to your accountant?

 

[theanalyst]

Well, I am self employed Simon, so it is everything that comes with the business, sign written van, all tools, phone lines x2, existing subscriptions and all existing customers and new ones etc

Not asked accountant as I do my sole trader accounts myself. Have full proof for last 5 years so would get the accounts audited and validated if needed.

Have TAX proof etc showing all figures.

Cheers

Cheers

 

[theanalyst]

Appreciate its a tricky one as essentially I am the business, but it is perfect for an existing firm that wants to grow their operation and guarantee enough work for one or two more staff I suppose.
Worst case I will have to put it on ebay. Very upsetting when you consider the amount of graft , sweat and tears that goes into building a business!!

 

[Old Account]

Is there not a plumber near your area who you know or perhaps do some interviews to try to find the cpright candidate who works for you full time and you run the admin site of it. Perhaps you can still make decent money from home ( off tools ) organising work, dealing with payments etc. It's just a thought so I k ow it ain't easy but perhaps worth trying

 

[townfanjon]

I would ask a business transfer company , maybe worth a punt

 

[rpm]

25yrs back there was a newspaper you could buy with nothing but business`s for sale as a going concern (I brought a limo company) so my bet is there will now be a website. Good luck hunting for it though.

 

[townfanjon]

25yrs back there was a newspaper you could buy with nothing but business`s for sale as a going concern (I brought a limo company) so my bet is there will now be a website. Good luck hunting for it though.

Theres loads pal , I have no idea if a small plumbing &heating business would sell , defo worth asking though.

 

[jtsplumbing]

Van , Tools, and any fixtures / fittings are worth something, customer list not worth a light, I will get the same when I stop, and been doing it for 20 + years small one man operation's not worth anything unless your passing it on to a family member.

 

[theanalyst]

Cheers guys. Appreciate the input. Will have a think through the options. Matchless, I did think about doing this, but anyone worth their salt will likely be working for themselves and get Soded off raking it in for someone sat at home while they graft their nuts off!! And likely swipe loads of customers (if you need any more work heres my card) type thing. Or at least that was my thoughts!

 

[Old Account]

Cheers guys. Appreciate the input. Will have a think through the options. Matchless, I did think about doing this, but anyone worth their salt will likely be working for themselves and get ****ed off raking it in for someone sat at home while they graft their nuts off!! And likely swipe loads of customers (if you need any more work heres my card) type thing. Or at least that was my thoughts!

True as well, but some ppl don't want to deal with all this type of ... some of the ppl are happy to just work from a certain time to get paid without having all the stress in the neck. It's worth trying ...

 

[theanalyst]

Did building work for nearly 15 years before just doing plumbing and heating (better money less physical so I hoped) so thats why I am getting a bit broken I think lol 😱

 

[Old Account]

Did building work for nearly 15 years before just doing plumbing and heating (better money less physical so I hoped) so thats why I am getting a bit broken I think lol 😱

If you get the work in but struggle to fulfill them because of your physicality then don't give up and look for someone first before selling. Be your own boss is a little bit more stressful but very rewarding.

 

[quality]

A good friend of mine was in a similar position like yourself with an established business and customer base over 10 years, just over 2 years ago we tried to sell the business, tools, future planned work etc as a going concern and I got nowhere. The difference was he was killed but I inherited responsibility over financial affairs for his family as he was single, only because we were very good friends i.e. rode bikes, drunk beer and did the same job. ebay I used and I sold a few bits on here.
In contrast there are many folk around here doing the same thing so someone will get the work without buying it. Unless you have contracts for work your current customers will use who ever they can if your not around meaning your customer base without a contact is anybodies and is worth very little

 

[king of pipes]

Can you not scale back the install side of your business and concentrate on servicing and breakdown that is what i will consentrate on when the bones finally give up. Cheers kop

 

[jtsplumbing]

That's what I do now, arthritis in both knees & hips so just do basic jobs boiler repairs , servicing and any small jobs other plumbers don't want keeps me going 2 / 3 days a week don't make a fortune but keeps me active,

 

[1Steven]

Started in plumbing 35years ago has changed lots! Most new guys want to build up there own customer base.

 

[brum]

Sorry to say so but I think only your assets are worth anything van stock tools etc .customers come and go ....as do plumbers if a customer phones you and you don't react then chances they will try another plumber 25 k can easily be earnt on cards so can't see any value there sorry ☹️ All the best anyway .......brum