Selling a business?

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Selling a business?
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Pel

Joined: 29 Mar 2008
Posts: 2366
Location: Sennybridge

Posted: Tue Aug 28, 12 9:43 pm Post subject: Selling a business?

How does one go about doing this? what is involved? how do you price up said business?

Just looking at options. Maybe sell the name i use here with all my clients details (again how do i go about data protection etc) or do i not pass over the details or do i phone everyone of them and say do you want me to do this (as there are a few i've had over the past 4 years).
I can always start up else where with a new name like farm sitting service or livestock sitting service etc. or is that not allowed?

I've seen someone trying to do a franchise of this type of thing and you pay £10,000 not sure what you get though, no clients, just a name and maybe some moral support.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Tue Aug 28, 12 10:20 pm Post subject:

What do you have to sell? Are there assets, or just goodwil and a customer list? Am I buying tools, vehicles and a workshop, complete with stock, or a brand and a business plan?
What did you turn over last year, how many staff, current contracts, what was the profit?

It's an impossible question without these answers, and many more.

Could I turn up and set up to do the same as you easily? What would it cost me to do so?

Hairyloon

Joined: 20 Nov 2008
Posts: 15425
Location: Today I are mostly being in Yorkshire.

Posted: Tue Aug 28, 12 10:28 pm Post subject:
Become a limted company, then you can sell it piecemeal.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Tue Aug 28, 12 10:37 pm Post subject:

Hairyloon wrote:

Become a limted company, then you can sell it piecemeal.

Practically, what does this mean?

Pel

Joined: 29 Mar 2008
Posts: 2366
Location: Sennybridge

Posted: Tue Aug 28, 12 10:39 pm Post subject:

Just goodwill and a customer list.
The name smallholding sitting service does seem to be getting around the place.
The only major outgoings are travel expense (which is covered in fee), food (also covered), advertising, hosting of website and insurance.

Total income was: £5,653 But there is room for expansion if more advertsing was done for winter months, and if the fees were put up to be in-line with english sitters then a lot more could be made

I have a lot more outgoings as some jobs i contract off to dad, and this year invested in some new waterproofs.

As long the person who bought it had the experience or a HND in agri/equine then they could start straight away, only set up costs is the advertising that you'd need to continue to make sure you'd get winter/early spring clients, and have a car already.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Tue Aug 28, 12 10:43 pm Post subject:
Income is vanity, profit is sanity. What was the profit? Valuation for a business is often a multiplier of the profit, perhaps two or three times that, plus the value of any assets. But this can vary hugely between industries.

woodsprite

Joined: 20 Mar 2006
Posts: 2943
Location: North Herefordshire

Posted: Wed Aug 29, 12 4:52 am Post subject:
Insurance costs aren't mentioned, surely they are quite high?

Penny Outskirts

Joined: 18 Sep 2005
Posts: 23385
Location: Planet, not on the....

Posted: Wed Aug 29, 12 5:46 am Post subject:
In reality, you are selling yourself as a reliable, expert, highly regarded person, and that is the only real asset the business has. Without that asset, the business wouldn't appear to have a value.

Shan

Joined: 13 Jan 2009
Posts: 9075
Location: South Wales

Posted: Wed Aug 29, 12 8:35 am Post subject:
Penny has a very good point. People have built up a relationship with you and they trust you to look after the animals. What is left if you take yourself out of that equation? Would you have the time to dedicate to a new person buying the business, to help them develop that same level of relationship if you sold it?

Pel

Joined: 29 Mar 2008
Posts: 2366
Location: Sennybridge

Posted: Wed Aug 29, 12 9:06 am Post subject:

I dont think there would be much left after I was taken out, other than the customer list.

Its kind of more thinking that If i could pass the client list on then there might be someone to take them on, as at the moment there isnt any non-agency people doing this, and they just cost soo much more.
That's when parents said i should see if I could sell the name with the list.

I'll work out the profit later with just the things mentioned.
Otherwise its £4154.88 (thats with no wage taken out)

To add another outgoing is countryfile calenders and christmas cards, all clients get a christmas card, and those who I've had a repeat booking from also get a countryfile calender too.

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Wed Aug 29, 12 9:21 am Post subject:
Not being funny or anything, but are you sure your clients would want to know that you are selling their names/details? I dont think Id be happy.... after all, the business you have built up is based on trust....

chicken feed

Joined: 27 Aug 2009
Posts: 2677

Posted: Wed Aug 29, 12 9:39 am Post subject:

Lorrainelovesplants wrote:

Not being funny or anything, but are you sure your clients would want to know that you are selling their names/details?

I dont think Id be happy....
after all, the business you have built up is based on trust....

ditto

woodsprite

Joined: 20 Mar 2006
Posts: 2943
Location: North Herefordshire

Posted: Wed Aug 29, 12 10:12 am Post subject:
Not even sure that you're allowed to?

Shan

Joined: 13 Jan 2009
Posts: 9075
Location: South Wales

Posted: Wed Aug 29, 12 10:17 am Post subject:

Pel wrote:

I dont think there would be much left after I was taken out, other than the customer list.

It's a bit like selling a business whose income generating ability is its intellectual property but then selling it without the intellectual property.

Shan

Joined: 13 Jan 2009
Posts: 9075
Location: South Wales

Posted: Wed Aug 29, 12 10:18 am Post subject:

woodsprite wrote:

Not even sure that you're allowed to?

When you sell a business, you sell the customer base.

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