Selling a business

[straas]

Most of my income is from my labour. I'd have to look at the actual figures - may be nearer 15k turnover.
I did a search for businesses for sale, by way of a little research. After I saw one business (with premises liability as well) which had 135k turnover and 10k profit, I concluded my business was a better proposition!

around 7-8% profit on that business, which is pretty healthy generally.

are you sure you're not underestimating your expenses? mileage, materials etc?

 

[albion]

£10k profit on £12k turnover is unheard of!

Gardeners too.

 

[T4tomo]

Turn over c12k a year with profit of 10k

You aren't costing in your own labour. Presumably you charge what another plumber would want to charge so your profit is approx zero after deducting wage / labour cost.

Goodwill / the business name and customer list / forward of telephone number might be worth a few bob.

 

[Slick]

Most of my income is from my labour. I'd have to look at the actual figures - may be nearer 15k turnover.
I did a search for businesses for sale, by way of a little research. After I saw one business (with premises liability as well) which had 135k turnover and 10k profit, I concluded my business was a better proposition!

Depends hugely on what the company is trying to achieve.

Unbelievably, some unscrupulous operators will minimise their profits to reduce their tax liability.

I know, right.

 

[CXRAndy]

Turnover is vanity, profit is sanity.

One man businesses àre almost worthless, unless they have some iron clad contract for services.

Value will be goodwill, and tools. Goodwill will be very little and difficult to value

 

[icowden]

Any ideas of best way to sell? I don't do social media, but thought approaching a local college could be a possibility as it would give a new starter to the trade a client base and an established company to build off.

Why not just take on an apprentice who would eventually take over the business. Presumably you could come up with an arrangement whereby said apprentice pays you a percentage for a period of time once you have left them to it, or some such to cover the passing on of tools, equipment, van etc?

 

[Candele]

From what I’ve seen, small service businesses like this usually sell for a simple multiple of profit, often 1–2× if there aren’t major assets included. What really adds value is a solid client list and proof that the work is consistent year-round. Reaching out to local trades programs is actually a smart move, since new plumbers appreciate stepping into something already running instead of starting cold.

 

[CXRAndy]

Just been through this, well not exactly been through it. We seed started a business idea many years ago. We always thought it would be a small owner managing business. Through luck and hard work, it became an international business which attracted some bigger players into buying us out.

We completed recently-very pleased with the outcome