[ronnie paton]

mbbut he sold and surely would have had a turnover.

he bought the franchise proberly cause of the sales men and is patter but the person who bought it off him had accounts and profits to look at.

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.

is that  a first tosh

[Sapphire Window Cleaning]

Exasperated.

Your argument is flawed MB, by all means sell yourself short, many will and have and continue to follow your lead.

Explain please Ewan?

[Sapphire Window Cleaning]

mbbut he sold and surely would have had a turnover.

he bought the franchise proberly cause of the sales men and is patter but the person who bought it off him had accounts and profits to look at.

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.

is that  a first tosh

HE didn't have any records to go on just the sales pitch of the Franchiser.
He built it up to £250K, spent £1,000's on fitting the shop out and buying the equipment needed to run it.
He sold it for £15K less than he bought it for, but during the time he had it, he invested some of the profits in real estate.


The point I am trying to make is the fact that my friend sold his business for £65K but that included £30K of equipment.
plus his turn over was £5K per week, £20K per month, and sold it for 3 times the monthly turn over.

[ronnie paton]

MB read what you have said.

3x turnover now how can you sell   a business on turnover?

think about it your only intrested in profit a company could turnover a million but make a loss of half a million would you pay 3x its monthly turnover??

[Sapphire Window Cleaning]

Exasperated.

Your argument is flawed MB, by all means sell yourself short, many will and have and continue to follow your lead.

Explain please Ewan?

You will have to wait for windowwashers to give you the finer points. Bit in a nutshell what you have built up has “real value” or could have real value with a little more effort (if you got things wrong slightly) or will have real value in the near future.

Disagree all you like and sell for 3 months pay, it’s your business.

Ewan it isnt 3 months pay! its 3 months turnover, big difference mate.



Matt

[ronnie paton]

Exasperated.

Your argument is flawed MB, by all means sell yourself short, many will and have and continue to follow your lead.

that makes it better then :

Explain please Ewan?

You will have to wait for windowwashers to give you the finer points. Bit in a nutshell what you have built up has “real value” or could have real value with a little more effort (if you got things wrong slightly) or will have real value in the near future.

Disagree all you like and sell for 3 months pay, it’s your business.

Ewan it isnt 3 months pay! its 3 months turnover, big difference mate.



Matt

[Window Washers]

Exasperated.

Your argument is flawed MB, by all means sell yourself short, many will and have and continue to follow your lead.

Explain please Ewan?

You will have to wait for windowwashers to give you the finer points. Bit in a nutshell what you have built up has “real value” or could have real value with a little more effort (if you got things wrong slightly) or will have real value in the near future.

Disagree all you like and sell for 3 months pay, it’s your business.

Ewan it isnt 3 months pay! its 3 months turnover, big difference mate.



Matt

That Is a fair Point, and Ewan why am I getting dragged into explaining, I just asked you to explain as I did not understand what you mean t at the time of your posting.  :

Ian

p.s I would not sell for 3 months pay or turnover.. just to clarify that point

[ronnie paton]

fair point window washers would you buy a business of turnover?

[Sapphire Window Cleaning]

MB read what you have said.

3x turnover now how can you sell   a business on turnover?

think about it your only intrested in profit a company could turnover a million but make a loss of half a million would you pay 3x its monthly turnover??

going back to the window cleaning business, depends what your over heads are. if your a larger business that buys a round to extend your existing round then you will have higher overheads than the local Traditional window cleaner with a set of ladders and a bucket, so the larger company will be making less profit than the local traditional window cleaner.
so in essence to the main question the round has a different value from one buyer to the next.


Matt

[ronnie paton]

wold i buy at 3 x turnover well if the profit was 60% yes would i sell for 3x of turnover if profit as say 60% no way that what using turnover for the value of a business does

[ronnie paton]

so i who has a business that is mainly run by stafff(when they turn up) is making les profit than aone man band.............................o really??

[Sapphire Window Cleaning]

In reality your round is only worth what someone is willing to pay.



Matt

[Window Washers]

fair point window washers would you buy a business of turnover?

NO

Unless I could see the problems why there turnover was so poor inregards to the profit. 

[Sapphire Window Cleaning]

so i who has a business that is mainly run by stafff(when they turn up) is making les profit than aone man band.............................o really??

as a percentage yes lol

takings to overheads the one man band will make more profit.
he wouldn't make more profit collectively.
the one man band doesn't have to pay for several vans, wages, employers liability, employer NI, holiday pay etc.
So out of the, lets say £200 for arguments sake, wages one person earns, you will have less profit on that £200 than a one man band.


Matt

[ronnie paton]

MB sorry if you feel im having a dig but step and backwards come to mind

[Sapphire Window Cleaning]

so i who has a business that is mainly run by stafff(when they turn up) is making les profit than aone man band.............................o really??

as a percentage yes lol

takings to overheads the one man band will make more profit.
he wouldn't make more profit collectively.
the one man band doesn't have to pay for several vans, wages, employers liability, employer NI, holiday pay etc.
So out of the, lets say £200 for arguments sake, wages one person earns, you will have less profit on that £200 than a one man band.


Matt

That should of been takings not wages.

[ronnie paton]

well one man on is own works for is profit but a man running a compny proberly doesnt so to speak

[Sapphire Window Cleaning]

Ronnie the point I was trying to make was if a one man band bought a round for 3 x monthly (2,000 per month)
out of that £2,000 the one man band would make more profit out of it.
and because he would make more profit out of that, does is justify increasing the price?
Where as the larger business will make less profit out of that £2,000 becuase of overheads they would want to buy the round for less.


See my point?

[ronnie paton]

NO.

That will take the sam tm if it was acompany or one man band your missing the point that just cause you clean your self doesnt mean its all profit you have to work which is time which is an expense.

so say my company buys the work one man does in two weeks i pay him 300 a week plus running cost of 120 a week now you clean this your self you still have to include your time has an expense so it makes the same!! simples

[Sapphire Window Cleaning]

This is why I wont buy a round, I wont even sell a round.
I am planning on building my business, so when I am ready for retirement I can sell the entire business. the buyer would have a complete working business including staff.
that way I would get the most amount for it.



Matt