I want to start improving the value of my business to make it look more appealing to a buyer

[BIG WOOD]

I've been trying to give myself a 10-15year goal of starting to give my business an opportunity to catch the eyes of a buyer. Here's what I've done and what I feel needs to be done.
-1st and foremost, have a decent growth every year
-Have decent, reliable equipment
-Have a high list of customers with almost equal of having new customers vs repeat
-*Have contact information of each customer well organized for future marketing
-**Make the business able to run on it's own through reliable staff and easy to operate equipment

*The contact information is there, but it's not well organized into any software. I'm still a good, ol fashioned hand written kind of guy. Let's face it, I hate software. I still do my taxes every quarter with a pen and paper, and my scheduling the same way. I know an outsider isn't gonna like to see that, so I need help in how to organize my last 3 years into a software program, and finding someone local to do it for me that I'll pay them

**I'll eventually need to have a Box truck or van with my setup in it, instead of my current trailer, just because I don't feel comfortable having an employee drive all over the place with a 7X12 trailer. Not a good combination. And someone in the office as well. I'm about 5years from converting over to that setup.

But the biggest concern is the *contact information part of this thread. Any ideas?

 

[Mark Saiger]

I've been trying to give myself a 10-15year goal of starting to give my business an opportunity to catch the eyes of a buyer. Here's what I've done and what I feel needs to be done.
-1st and foremost, have a decent growth every year
-Have decent, reliable equipment
-Have a high list of customers with almost equal of having new customers vs repeat
-*Have contact information of each customer well organized for future marketing
-**Make the business able to run on it's own through reliable staff and easy to operate equipment

*The contact information is there, but it's not well organized into any software. I'm still a good, ol fashioned hand written kind of guy. Let's face it, I hate software. I still do my taxes every quarter with a pen and paper, and my scheduling the same way. I know an outsider isn't gonna like to see that, so I need help in how to organize my last 3 years into a software program, and finding someone local to do it for me that I'll pay them

**I'll eventually need to have a Box truck or van with my setup in it, instead of my current trailer, just because I don't feel comfortable having an employee drive all over the place with a 7X12 trailer. Not a good combination. And someone in the office as well. I'm about 5years from converting over to that setup.

But the biggest concern is the *contact information part of this thread. Any ideas?

That sounds like Service Monster territory for the contact info...

I have not personally used it as I am stuck out in the middle of no where, but what I hear, sounds like good stuff....

The rest, yes if you can get into a van vs trailer, I think will help and then also help you when get busier yet because easier to maneuver just a van vs a truck and trailer....

Keep the equipment looking good, have a good reputation, and the business will be attractive not only to a future buyer but to current and future clients I think helps too of course...

If nothing else, Kudos to you for even starting to think about this and form a plan....just would suggest to be prepared for change as things change for all of us...I tend to be behind the ball sometimes not predicting future needs and growth all the time in a correct manner...

 

[Papa John]

Good Luck Matt.. Its always good to keep trying to improve.

With the ever shrinking Middle class I'm not so sure our clients will have the disposable income for such luxuries as professional cleaners in the future.
Even our clients in high-end areas are cutting back of services.
One high end custy split the service into two trips because she couldn't afford the service on one trip.
Biz is down about 12% from last year. I had to roll back a recent price increase and give discounts to get the phones to ring again.

 

[Mikey P]

Service Monster is dirt cheap Matt.

"Get with the program"...

 

[Onfire_02_01]

I have been liking house call pro as well. Used service monster a few years ago for a company I subbed out for, only lasted a week because the owner couldnt add more to the bill after the techs completed the job. So I cant say too much about it. there are others out there for different things like constant contact and emma marketing. I believe that @Shane Deubell also built one more on the lines of commercial carpet cleaning. Yahoo search for CRM software. Also get an accountant, new owners wont want to deal with the taxes either. You are paying your accountant to make you money on your taxes. A good one will tell you about tax savings youbdidnt know about. Did you know you can get a tax refund for the gas and deseil you run through your truckmount? No road taxes can be taken out if the machine doesnt go on the road. Same goea for your lawnmower, though that amount is usually not worth filing.

 

[BIG WOOD]

I have been liking house call pro as well. Used service monster a few years ago for a company I subbed out for, only lasted a week because the owner couldnt add more to the bill after the techs completed the job. So I cant say too much about it. there are others out there for different things like constant contact and emma marketing. I believe that @Shane Deubell also built one more on the lines of commercial carpet cleaning. Yahoo search for CRM software. Also get an accountant, new owners wont want to deal with the taxes either. You are paying your accountant to make you money on your taxes. A good one will tell you about tax savings youbdidnt know about. Did you know you can get a tax refund for the gas and deseil you run through your truckmount? No road taxes can be taken out if the machine doesnt go on the road. Same goea for your lawnmower, though that amount is usually not worth filing.

Yes, I've been using the same CPA for over ten years. That's one good move that i know I've made.

 

[PrimaDonna]

I highly recommend service monster. Been using it about 7 years. It's really easy to use and gives us amazing data and customer info.

It's one stop shopping as far as I'm concerned. You can send reminder cards through the mail to all the clients, divide them up by residential or commercial, email them estimates and invoices, email them specials etc. you can tag them to any sort or campagain, special or marketing effort and track exactly how many new clients, jobs and revenue you got.

I'd be happy to talk with you about what it's done for us Ana how we use it.

Better yet.... Go to Nashville and sit in on my session. That's what I'll be talking about.

 

[BIG WOOD]

I highly recommend service monster. Been using it about 7 years. It's really easy to use and gives us amazing data and customer info.

It's one stop shopping as far as I'm concerned. You can send reminder cards through the mail to all the clients, divide them up by residential or commercial, email them estimates and invoices, email them specials etc. you can tag them to any sort or campagain, special or marketing effort and track exactly how many new clients, jobs and revenue you got.

I'd be happy to talk with you about what it's done for us Ana how we use it.

Better yet.... Go to Nashville and sit in on my session. That's what I'll be talking about.

I'm mostly concerned about filling out the last three years to be able to show a record of progress with my business. Is that a possibility with service monster?

Right now, I just have several handwritten calendar books that I use to post plan follow ups and reminders. I'm so old school it's ridiculous. Service monster will probably be the way I go.

 

[Desk Jockey]

For the past data you could just put in an Excel spreadsheet. It will be easy to copy and paste to compare years, once the data is entered.

Then going forward SM

 

[ruff]

What should also be discussed here is the value of the business.
From numbers floated here in the past, by say Tom King, he was saying that he'll be willing to pay something like a month income.
If that is the case (the norm) or even if you can get ten times that sum, it ain't worth it.

1. Just concentrate on improving net income and work a few months longer and you'll make more money, without all the the headache.
2. Or work hard on getting a better buyer. Which is different than concentrating on improving the value of your business. It will go hand in hand with it.

 

[roro]

good on you
Good on you Matt for setting out some clear goals well in advance.
Old age has a nasty habit of sneaking up on you. (Just wish that I had thought through my exit strategy years back)

Would question this goal Matt "Have a high list of customers with almost equal of having new customers vs repeat"
If I was a prospective purchaser I would be looking for a high % of repeat business, otherwise what am I paying for?

roro

 

[BIG WOOD]

good on you
Good on you Matt for setting out some clear goals well in advance.
Old age has a nasty habit of sneaking up on you. (Just wish that I had thought through my exit strategy years back)

Would question this goal Matt "Have a high list of customers with almost equal of having new customers vs repeat"
If I was a prospective purchaser I would be looking for a high % of repeat business, otherwise what am I paying for?

roro

That's what I always questioned on what was more valuable to a buyer...?having more new customers vs. repeat customers? My return rate on customers is very high, and the reason I'm having almost just as many repeats is through my current customers referring them to me.

I assumed that as long as I had a high number of different customers, that, that would show the value of my business.

But you're saying that I still need to have a much higher % of Repeats? Can I get a suggested amount higher than new customers?

 

[PrimaDonna]

I'm mostly concerned about filling out the last three years to be able to show a record of progress with my business. Is that a possibility with service monster?

Right now, I just have several handwritten calendar books that I use to post plan follow ups and reminders. I'm so old school it's ridiculous. Service monster will probably be the way I go.

Yes. I often run reports that show week, month, quarter and year to date comparisons.

 

[PrimaDonna]

That's what I always questioned on what was more valuable to a buyer...?having more new customers vs. repeat customers? My return rate on customers is very high, and the reason I'm having almost just as many repeats is through my current customers referring them to me.

I assumed that as long as I had a high number of different customers, that, that would show the value of my business.

But you're saying that I still need to have a much higher % of Repeats? Can I get a suggested amount higher than new customers?

Service monster tracks your repeat rate and shows it on your dashboard. Love watching that % climb. You can also run a new vs repeat report for any time period. Good stuff.

 

[rick imby]

First thing I would recommend is changing your logo... I have never liked it--- If the picture up here is your logo...

I am not trying to harrass you or give you a bad time...

 

[BIG WOOD]

First thing I would recommend is changing your logo... I have never liked it--- If the picture up here is your logo...

I am not trying to harrass you or give you a bad time...

If i were a new business, id consider doing that. My business is turning 15 this year and the customers know my business through this logo. I might adjust the colors though because he could use an update on hos business outfit

 

[roro]

I can't say what is right for you but our repeat/referral rate most years runs at just over 80%. Depending on who is manning the phones our conversion rate for new customers ranges but our best is approx 80%.
Only problem with being around for a few years is getting enough newbies to replace "the deadies" and the move-ons.

 

[Kevin B]

Every business owner should have an exit strategy.

A year ago, I had a business valuation done by large national brokerage. We will repeat this about every other year developing an upword(hopefully) trend in growth and value.

I have no plans to sell, but you never know what will happen and this will establish a value in case I am deceased and something needs to happen for the sale

 

[BIG WOOD]

So how would one go about presenting the business for sale without making it look bad to the local competition? Has any one of you successfully sold your business or knew of anyone who has?

 

[Kevin B]

So how would one go about presenting the business for sale without making it look bad to the local competition? Has any one of you successfully sold your business or knew of anyone who has?

That is what a broker is for. Worth every penny. Murphy Business Brokers. Forget the competition, how does it look to your customers?

 

[BIG WOOD]

That is what a broker is for. Worth every penny. Murphy Business Brokers. Forget the competition, how does it look to your customers?

My business looks very professional to my customers. The reviews show that

 

[Kevin B]

My business looks very professional to my customers. The reviews show that

Yes, except when word gets out your selling, fear of the unknown sets in, and you will lose some. Business sales need to be done confidentially

 

[Nate The Great]

People tend to jump ship if they get word of a possible sale........ Not good for buyer and/or seller.... If you sell, "Loose lips, Sink ships"