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philosopher and statesmen
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Discussion Starter #1
Something everyone should be thinking about..... kicking the bucket and someone taking over the
business someday .....one way or another it is finally gonna happen and either you think about it and
plan things or go the way of the do-do bird and your business just vanished under the sand....

I got a huge client list on my quickbook file and a whole bunch of branding with stickers out in the
field and I hope this will be of interest to some larger company or person who has the initiative ,
ambition and drive and of course $$$ to buy it some day ..... and then I can move to florida....





 

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I'm not sure if I want to sell the bizz, The bizz will decline for sure and probably get a bad rap. I'd probably be responsible for the screw ups of the new owner. Second if I'm going to sell it I doubt anyone wants to cough up a several 100 grands. A young buck wanting to start up won't have the money and the bank won't lend it I bet. Would a big company want to buy me if they have enough business already?

Anyway when you close shop you still have to be open for several years with the same phone number in the government's eyes and pay taxes on an income that no longer exists.
 

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I'm not sure if I want to sell the bizz, The bizz will decline for sure and probably get a bad rap. I'd probably be responsible for the screw ups of the new owner. Second if I'm going to sell it I doubt anyone wants to cough up a several 100 grands. A young buck wanting to start up won't have the money and the bank won't lend it I bet. Would a big company want to buy me if they have enough business already?

Anyway when you close shop you still have to be open for several years with the same phone number in the government's eyes and pay taxes on an income that no longer exists.

I think selling a plumbing business is kind of a joke when you're a one or three man out fit with no commercial building. Usually the van is shot, the parts are outdated and specific to customers who want YOU not "your company", and the phone number isn't really worth that much when the customers don't hear the familiar voice on the other end.

When you're that small what you're really want is to train a journeyman to slowly take over the business more and more as you get paid less and less each year for your diminishing role in the company. This way the customers can get used to the new guy over a couple years and you're still a phone call away when they feel nervous in different hands.

We are huge for a residential plumbing company. If the owner was joe blow instead of joe sixpack 99% of our customers wouldn't know. As long as sweet cheeks answers the phone and the same plumber shows up most of the time the customers are happy. A lot of my regulars were used to steve for decades. He retired and they got stuck with me. That made some nervous but I have been with the company a long time and have enough anecdotes about working with steve to quell their fears. I am familiar enough and it doesn't hurt that I am good at my job.

Familiarity and a good reputation are the real value in your company. If you can't sell that than you don't have a business to sell.
 

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philosopher and statesmen
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Discussion Starter #4 (Edited)
I'm not sure if I want to sell the bizz, The bizz will decline for sure and probably get a bad rap. I'd probably be responsible for the screw ups of the new owner. Second if I'm going to sell it I doubt anyone wants to cough up a several 100 grands. A young buck wanting to start up won't have the money and the bank won't lend it I bet. Would a big company want to buy me if they have enough business already?

Anyway when you close shop you still have to be open for several years with the same phone number in the government's eyes and pay taxes on an income that no longer exists.

I honestly doubt anyone would be willing to fork out big money for a smaller plumbing business. Now if
its a larger company or one that has been around forever and they are interested in taking over the
customer list. perhaps the larger numbers make sense...

I know personally of folks who have bought bars, and I would not wish that grind on nobody
but guys will take over bars all the time thinking their life is going to be a party....:rolleyes::rolleyes:

Their are people in the trades who know basically what you are making every week on average
and buying an established business with the phone ringing off the wall is probably not a bad or un-wise thing '
to do .... the question is what is it worth to them ??

You know that 50k is what a new plumbing truck is worth and to some this is nothing....basically its just another payment to a bank.... and you get a guy running that truck correctly and all is good 🚚

If someone was willing to fork over 50-150 k to me versus just letting the doors close and walking
away from something of value that would pay itself off in no time,
you would have to be a moron not to be looking for that person as your
time to retire comes closer and ever closer💲💲
 

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I think selling a plumbing business is kind of a joke when you're a one or three man out fit with no commercial building. Usually the van is shot, the parts are outdated and specific to customers who want YOU not "your company", and the phone number isn't really worth that much when the customers don't hear the familiar voice on the other end.

I'm speaking for my service business. I don't view it on the terms of a truck and tools but in the number of calls you get and the presence on the net. Take a rookie trying to start a service bizz and doesn't have the knowledge or determination to put his name online well he's going to be in big trouble getting calls. If you are on page 40 no one is going to call you. That's what it was when I started my name wasn't even showing after some 30 odd pages.

The only callers were from the hack ads. I had to go out and buy 80$ in fittings do the job and go back to the store with the left overs for a refund so I could pay the license fees, overhead etc. I was lucky to get a single 1 hour job a week. Sometimes it would be 2-3 weeks before I got another 1 hour job from people who were hagglers and didn't want to pay at the end. It's not because you have a website you are going to show up online either. You don't jump to page 1 and be in the top 5 just like that, it takes years and do every thing right to rank up. I've spent thousands of hours developing a presence and fine tuning it. Even big companies hiring seo companies don't always master that so imagine the new guy, he can give up real quick and close shop. I had to fight to be seen compared to the companies who have 10-20-30 employees and being in the bizz for over 30 years. When 10 well known companies hog the first 5 pages you are pretty much dead.

If someone were to buy me they'd have a premium spot on the net with many calls. He would be "hitting the ground running" that's the value in it, he wouldn't starve or worry to go kaput if his own bizz didn't take off. The guy could be poor for the next 10 years or bankrupt trying to gain calls or he buys me and instantly having jobs and making money.
 

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I've got a son who would be a good fit to take my company someday if I can't sell it. So at least all the building efforts won't go to waste. Doing about 1.5 million a year now with 1000's of repeat customers so enough to make someone take a look I think.

Who knows, I'm still in it for another 10-15 years anyway.
 

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philosopher and statesmen
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Discussion Starter #7
I've got a son who would be a good fit to take my company someday if I can't sell it. So at least all the building efforts won't go to waste. Doing about 1.5 million a year now with 1000's of repeat customers so enough to make someone take a look I think.

Who knows, I'm still in it for another 10-15 years anyway.

So how many people do you have working for you to be doing 1.5 mil a year??? Just wondering
 

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9, 4 plumbers, 2 helpers, 3 in the office, plus part time dispatch. And me, so 11 actually. Office staff is manager, full time dispatcher and third lady is AR/AP and official quote writer.

I laid off a new construction plumber last month but interviewing another service plumber next week. Just a lot of work out there.
 

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philosopher and statesmen
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7,311 Posts
Discussion Starter #9
9, 4 plumbers, 2 helpers, 3 in the office, plus part time dispatch. And me, so 11 actually. Office staff is manager, full time dispatcher and third lady is AR/AP and official quote writer.

I laid off a new construction plumber last month but interviewing another service plumber next week. Just a lot of work out there.

Wow..... that sounds like too much fun to me..
.I remember.. I had 9 at one time with 6 trucks but that was back in 2000 and it was
just too crazy trying to manage everyone including the office help..........
I dont care to ever run at that pace again... I never had to deal with 3 in
the office to pay for.... that seemed to be my job.

now if you are saying
you are netting 1.5mil a year that is probably worth the headaches.........
 
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