I really hope someone can help me! My business partner and I own a small, but lucritive cleaning business. We do residential cleaning as well as new construction homes for about 8 builders in our area. We also do apartment move out cleaning for a medium sized complex owned by a friend of mine. Anyway, we want to sell it in order to be able to buy a local coffee shop/eatery. Here is my problem: We do not have any of our clients under contracts. I have been told that our business would be worth more if they were. I don`t disagree with that, however we have been with these customers for some time and I think they would find it weird if we went to them now asking them to sign a contract. Not to mention I don`t think they would anyway. The apartment complex has a back up cleaner they use when we are too busy and they need something done in a hurry and most of the builders have 2 or 3 additional cleaners. In all cases, we have been told, we are their preferred cleaner and I believe them because we get all of their high-end jobs. I mentioned yesterday to my sub-contracted window cleaner (who is a friend from high school-many moons ago!)what we wanted to do and I got a call from someone who also knows my window guy and he is interested in our company. I told him I needed to consult with our attorney before I gave him a price, however if I could get any feedback from here I would be greatful to save the attorney fees!! So here is the basics:
1.This is a part time business for us due to both of us having school age kids. Leaves the growth possibilites wide open for the buyer.
2. We have no employees- tried that once, got all the crazies and parolees.
3. Mid-to Upper class residential clientele. Also have a few little old ladies.
4. From 2006-2007 had a 2.5% decline in new home construction business. However had a 20% increase in apartment cleanings.
5. Many residential clients pay cash.
6. Three year NET earnings were $121,786.00 That is roughly $40,000 per year.
I also wanted to note, we have never had to do any formal advertising. All of our jobs have come thru word of mouth. Two or three times we have done mass mailings to builders in our area over the 7 years we have been in business. We also targeted upper middle class neighborhoods and put flyers in the newspaper holes of their mail boxes. That`s it. We have a great reputation and are much more detailed in our cleaning than other companies in our area. At least that is what I hear all the time from our customers.
Based on this info, does anyone have an idea what if anything we could sell this business for????? Help!!!
Thanks so much, I don`t post often, but love to read them and save those that I believe are helpful.