Sell or Take on Partner

TexasDec

Hi All,

I'm an occasional visitor to Boards but this is my first post!. I have a full set up for a Carpet/Upholstery/Contract Cleaning Business but I don't have the time to pursue it due to other commitments.

I have been thinking about selling it for a while and have just had the van tested for a year in preparation. Another option I have been thinking about is taking on a partner to run the outfit for a percentage share of profits. As I say, it's fully equipped with top of the range equipment and a VW Transporter van fully tested for a year.

Any advise/suggestions would be appreciated.

Regards,

Dec

YellowSheep

Hi Dec
My immediate suggestion would be to take somebody on and let it make money. I don't think it will be easy to sell in this climate. Just a thought. Oliver

FusionNet

The main problem with the current climate is there is going to be a lot of companies going out of business and therefore there will be a lot of kit for sale either through auctions from repo companies or guys just trying to pay off debts by clearing assets.

Now the good thing about this business you have is that again in this climate people arent likely to just throw out carpet and replace. The next ten years is going to be all about maintenance and keeping what people have bought in good condition and in working order.

Is this Vehicle costing you money, as in without getting into detail do you Need to sell it or is it a debt free asset?

TexasDec

Hi,

Thanks for the replies. I do believe that cleaning and refurbishment business's will thrive in the current climate as you say, people will want to look after what they have rather than replace.

It's debt free but I'd prefer not to have it sitting idle. I'd rather not to employ anyone at the moment as it would probably take a couple of months to get it fully off the ground and I wouldn't have the time to supervise it myself.

I do think it would be a good opportunity for the right person.

I may advertise it locally as a business opportunity and take it from there depending on the response I get.

What do you think?

Thanks,


Dec

businesses

Hi Dec,

It would be a shame to part with your business after doing all the hard work, my advice would be to seek a business partner and allow them to run the business and you can share the profits.

TexasDec

businesses wrote: »

Hi Dec,

It would be a shame to part with your business after doing all the hard work, my advice would be to seek a business partner and allow them to run the business and you can share the profits.

Thanks for the reply, I think I will try this in the first instance, just a matter of getting the right person.

Thanks,

Dec

Spinnaker

PM sent to you yesterday...

gnxx

Maybe a soft sale of the business is the answer.

Find somebody who will take on the business. Agree that you are to be paid XX per month for two years as payment for 50% of the business; this payment will be the first payment that the company makes each month.

In two years time; the highest bidder can buy the other parties 50% to take complete control. Use either a sealed bid or russian roulette mechanism ( IE if I bid 50,000 for the 50% then you have the option to buy my share for 50,000 ).

Be fair on agreeing a price. You want the business to grow and your new business partner to make a few quid so you get a fair price in two years time.

TexasDec wrote: »

Hi All,

I'm an occasional visitor to Boards but this is my first post!. I have a full set up for a Carpet/Upholstery/Contract Cleaning Business but I don't have the time to pursue it due to other commitments.

I have been thinking about selling it for a while and have just had the van tested for a year in preparation. Another option I have been thinking about is taking on a partner to run the outfit for a percentage share of profits. As I say, it's fully equipped with top of the range equipment and a VW Transporter van fully tested for a year.

Any advise/suggestions would be appreciated.

Regards,

Dec

madmik

gnxx wrote: »

Maybe a soft sale of the business is the answer.

Find somebody who will take on the business. Agree that you are to be paid XX per month for two years as payment for 50% of the business; this payment will be the first payment that the company makes each month.

In two years time; the highest bidder can buy the other parties 50% to take complete control. Use either a sealed bid or russian roulette mechanism ( IE if I bid 50,000 for the 50% then you have the option to buy my share for 50,000 ).

Be fair on agreeing a price. You want the business to grow and your new business partner to make a few quid so you get a fair price in two years time.

A Great idea if you can find a person willing to do all that and give you the lions share of the profits for the first two years(especially since u wont be there and they will be doing all the work and taking all the risks

Say u want 5000 a month and the first 5000 a month is yours and the rest is theirs theyre taking a bigger chance than u are since initial takings might not exceed 5000 a month

another problem is if the person has even a half a brain they could buy some equipment and start owning 100% of the business and ALL of the profits

I think you should split the profits 50/50 from day 1 as nobodys going to risk doing a months work for free

this will ensure u get a good person and you will both have something at stake

(your initial investment being the van+tools and the other man invests all his time into running it+doing the work)

hebeegb

if its going well for you at the moment, but you just feel you dont have the time to put into it, then that is a shame, i would certainly advise you though to exercise caution in entering into any partneship arrangement, you can get badly burnt, and the business name could be left in tatters!! equally that could happen if you let someone out unsupervised, i.e. an employee who represents you, my advice at the moment is to train someone in and let them do the work, and you look after all the records and appointments etc. that or just dump it on the market. if you have a customer base you might also think of approaching a similar business who might want to take over your area. Take a person on a three day week or something, as an employee , but if you are adament on a partneship, you should incorporate it, make them responsible and have them by a share up front, . you can easily value you business, say equipment, van etc, but price the customer base also, this is known as goodwill
best of luck in any event!

dandelion

The business only has a value if you have a list of regular customers and recorded a net profit for the last 2-3 years. If you are missing either of those then its not a business you're selling, its a collection of secondhand equipment.

Does it have 2-3 years trading accounts?