Hey Guys, due to health issues, I am struggling to keep up during the season. I have hired people to help but that’s been a royal pain and has ended up costing me money in the long run.
I have a friend who is considering buying my power washing business from me and wants to know what its worth. I have a rough idea but wanted to get opinions from you guys as well.
This will be my 4th season coming up and last year i grossed $69,000. My total equipment worth is probably $22,000 truck included. Ive been growing about 15-20% each year in gross income. I also have one contract worth $800 monthly that I just added this month so that’s not included in the close to $70k a year gross.
I was thinking that it may be worth around $70,000. Is that about right?
Based on the limited information on the business as a whole, and not knowing really what the equipment is worth to my particular market a shot in the dark for, I might offer $20k on the equipment and $80/month on a single contract if it’s longer than 12 months.
No idea why the rest of it is worth $70k and no idea about the market. Need tons and tons of info my friend.
Let’s assume for a second that you got your wording wrong and by Gross you mean Net. (Gross is before expenses, Net is after).
$69,000 net is… not that great. After taxes you’re looking at under $50k. Not to mention that you only have one real contract.
I’m not trying to insult you, but no in their right mind is going to pay $70k for a business that has no guaranteed income and will take two years to make their money back. It’s not like they’re just an investor dropping $70k into a business that will run itself. They’re going to have to be hitting the pavement, doing the manual labor, the management, the sales, the marketing, everything. Even then there’s no guarantee the business will succeed. Not to mention that, again not trying to insult you, being at $69k gross after 4 years is certainly not ideal. I was close to that my first half-year in business.
I think you should look at selling your equipment as that’s all that really has value here.
And if you truly do mean $69k gross (before expenses), then idk even know man.
Your business is really on worth your equipment cost, and even that if you payed 22k its worth half being used. Just because you made 70K doesn’t mean your business is now worth 70K. If you had 70K in monthly transferable contracts, sure. But if thats from residential and one off commercials jobs, than the emails, and phone numbers you have accumulated have very little value.
It won’t let me quote the fella above, but $800 per month is pennies if your average day is above that. I’m not really enticed by $800 a month. Now, if you have another $60,000 a year in contracts for longer than 12 months let me know, because depending on the contracts I might buy your company. Again, we need a lot more info. Where are you located?
