[ronnie paton]

i went to look at a kids clothes business it was for sale for 35k plus stock value.

now this business makes about 20k profit with a 200k turnover, there are other perks of the job like free designer kids cloths ect but my point is that is nearly double yearly profit so why do may believe our business is only worth 3x 4x monthly value???

we all need to re-evalute our business value!!!!

[Window Washers]

i went to look at a kids clothes business it was for sale for 35k plus stock value.

now this business makes about 20k profit with a 200k turnover, there are other perks of the job like free designer kids cloths ect but my point is that is nearly double yearly profit so why do may believe our business is only worth 3x 4x monthly value???

we all need to re-evalute our business value!!!!

what was the stock value Ronnie ? and where abouts was it ?

[ronnie paton]

cant tell you that ian

im quite intrested and dont wont any compeition.

[Sapphire Window Cleaning]

i went to look at a kids clothes business it was for sale for 35k plus stock value.

now this business makes about 20k profit with a 200k turnover, there are other perks of the job like free designer kids cloths ect but my point is that is nearly double yearly profit so why do may believe our business is only worth 3x 4x monthly value???

we all need to re-evalute our business value!!!!

If you pay out the value at 12 months worth, then you lose a lot of customers, you will lose alot of money.
some people will use the change over to cancel, especially in this climate.

[Londoner]

Whatever you value your business for, if you want to sell it you have to find someone with the money to buy it. There lies the problem. Rounds are sold for peanuts because nobody has got the money to pay more.

[Window Washers]

cant tell you that ian

im quite intrested and dont wont any compeition.

Fair enough  

[ronnie paton]

Whatever you value your business for, if you want to sell it you have to find someone with the money to buy it. There lies the problem. Rounds are sold for peanuts because nobody has got the money to pay more.

really i very much doubt it.

i have to say MB if you buy a round and lose half the customers your doing something wrong!

i run a good business that makes very good profit if some one was to buy it they wouldntlose any because they bought the company but it may be slightly different has it can be staff run.

but if you buy a business and are fully committed and do a quality job you will gao more than you lose FACT!!

[Sapphire Window Cleaning]

Whatever you value your business for, if you want to sell it you have to find someone with the money to buy it. There lies the problem. Rounds are sold for peanuts because nobody has got the money to pay more.

really i very much doubt it.

i have to say MB if you buy a round and lose half the customers your doing something wrong!

i run a good business that makes very good profit if some one was to buy it they wouldntlose any because they bought the company but it may be slightly different has it can be staff run.

but if you buy a business and are fully committed and do a quality job you will gao more than you lose FACT!!

Fair point Ronnie.
One thing also, its just customers that are usually for sale, no assets like equipment etc.

[ronnie paton]

MB but if you buy a cafe or garage or clths shop or computer shop or even a welders or accountants its all usually good willso why do we under estimate the value of a good PROFIT making business???

[Sapphire Window Cleaning]

LOL, the customers aren’t for sale 

So what do you buy when you buy the round then?

[Tosh]

LOL, the customers aren’t for sale 

So what do you buy when you buy the round then?

The tax man calls it 'goodwill'.

[Sapphire Window Cleaning]

MB but if you buy a cafe or garage or clths shop or computer shop or even a welders or accountants its all usually good willso why do we under estimate the value of a good PROFIT making business???

A friend of mine had a franchise of a pizza store that had a turn over of £250K per year, he sold it for £65K
For that the buyer got all the equipment
Ovens = £4,000
walk in Fridge = £6,000
Walk in freezer = £6,000
Computer system, = £4,000
and over £10,000 of other equipment needed to help run the store.

also out of the £250,000 anual turn over he had to pay out 11% in royalties.

[Window Washers]

MB but if you buy a cafe or garage or clths shop or computer shop or even a welders or accountants its all usually good willso why do we under estimate the value of a good PROFIT making business???

A friend of mine had a franchise of a pizza store that had a turn over of £250K per year, he sold it for £65K
For that the buyer got all the equipment
Ovens = £4,000
walk in Fridge = £6,000
Walk in freezer = £6,000
Computer system, = £4,000
and over £10,000 of other equipment needed to help run the store.

also out of the £250,000 anual turn over he had to pay out 11% in royalties.

turnover looks good on paper!

[ronnie paton]

is that the cost new??

what was the profit has that is far more important than any amount of turnover

[Window Washers]

LOL, the customers aren’t for sale 

So what do you buy when you buy the round then?

The tax man calls it 'goodwill'.

That’s the problem Tosh, if you ever deal with people who don’t understand the true value of goodwill, net profit as well all the other aspects.

It’s not rocket science, but it should be business.

(Buy a bucket get yourself a ladder and go window cleaning.   )

Explain yourself Ewan please

[Sapphire Window Cleaning]

LOL, the customers aren’t for sale 

So what do you buy when you buy the round then?

The tax man calls it 'goodwill'.

so you pay thousands for 'goodwill'
Thats why I would never buy a round.  

[ronnie paton]

MB iv bought good will an i would buy good will it makes good business sense has long has you kepp your clients /customers happy.

your pal that sold a pizza placesold good will, ye they got some equpment but with out the previous turnover(good will customers)they dont have a business.

[Tosh]

When I left the army I had a fairly large lump sum to either buy a round, or use it to live off while I built up a round.  Being new to the area and not trusting any window cleaners I decided to build up a round and use the money to pay our living expenses.

It probably wasn't a good idea and on reflection I should've used the money to buy a round, because my lump sum ran out before I'd got enough decent work.

It does take some years to build up a decent round, so I'd go with Ronnie and say that we undervalue our work.

Imagine you purchase 100 residential customers who're priced well and compact; it would usually take years to build up that sort of work, so selling quality stuff like that at just 3 or 4 times the amount seems a bit daft.

[Sapphire Window Cleaning]

MB iv bought good will an i would buy good will it makes good business sense has long has you kepp your clients /customers happy.

your pal that sold a pizza placesold good will, ye they got some equpment but with out the previous turnover(good will customers)they dont have a business.

He bought it for £80K
He had no previous profit margins or turnover to work with as he was the first person to take out that franchise in that town.

[Window Washers]

LOL, the customers aren’t for sale 

So what do you buy when you buy the round then?

The tax man calls it 'goodwill'.

That’s the problem Tosh, if you ever deal with people who don’t understand the true value of goodwill, net profit as well all the other aspects.

It’s not rocket science, but it should be business.

(Buy a bucket get yourself a ladder and go window cleaning.   )

Explain yourself Ewan please

You explain for me windowwashers.

Ewan I did not get the point you was trying to make m8, hence why I ask you to explain yourself, not having a dig, just asking