Wanting to buy a business. Is it a good idea.

[rnewton]

I am wanting to buy out a business and add it to mine. This guy has a snapper zero turn mower, a stihl backpack blower, a husq backpk blower, a shindawai trimmer, husq chainsaw, and a few other things. All this and 15, maybe more clients for $5000 . Is it worth it or should I run. I feel that it is worth it considering I can make 5 grand pretty quick off 15 clients.

[Lynch Landscaping]

I would never buy a business, but I would buy their equipment.

[Adam3669]

are these clients under contract? how will the contract transfer?

if not...i'd walk.

[rnewton]

None of them are under contract but I plan on talking to each of the clients before the transfer takes place to make sure they will stick with me. Should I make out a contract for them.

[abuckeye]

Run, I bought a company with 24 accounts and kept 10. I did not lose them due my fault. I did have a contract that if they did not stay I did not pay as much money. That's the risk you run

[PMLAWN]

What is the equipment worth, Thats what I would base it on

[fiveoboy01]

What is the equipment worth, Thats what I would base it on

Exactly. There is no guarantee you'll keep any of those customers.

[scotty2]

I baught one company out this year and they had 35 accounts not signed but the thing was that I had to sign them. The rule that I heard was you pay for 2 mowings so if you buy 35 accounts that would be 35 X 2 = 70 now times that buy the price per account( yes every account is different but you should get a gross of all accounts ) say 25.00 per account 25.00 X 70 = 1750 for the company:usflag:

[Mow It All]

Hey I bought my buisness established. I made the owner take me to each one and have them sign contracts. I did lose 10 out of 75 but he worked the price to show that. As far as the equipment...........I bought it 2 months ago, put a new motor on my 52" Toro, bought a new back pack, and a new wacker.......All bad. I got beat on that end but what can you do.

[dcondon]

No way would I buy out another business and accounts. I can see buying some equip and that's it!!!! JMO

[J Hisch]

I have bought 2 companies in the past one with 22 accounts 4 years ago probably still have 19 of them, I bought another out last year about 80 accounts probably have 90 percent of them, none of them were signed or under contract. Most residental customers only worry about 2 things, is the price going to stay the same and is the job going ot look the same or better. 5000 grand the equipment is probably worth 3500 easy.. Id probably go for it. Business is a risk and many arent willing to take it....