Originally Posted by 32vld
Instead of condescending how about prodescending?
So you don't use contracts out in the sticks. Is that because the courts there have ruled that signing a contract with an X is not a valid binding legal document?
Well down in the big city, well outside to be slightly more exact, but not a lot more I don't use contracts either.
That is what makes your accounts not worth much. There is no loyalty on your customers parts for who ever buys your route.
Example you have 40 customers that gross $1,000 each a year so total income is $40,000.
So your business is worth $80,000 (equipment not included) because it will take two years to earn that money back.
Well half of your customers decide they don't like the buyer and take their business else where. Now the new owner will only gross $20,000. Then it will take him 4 years to earn the purchase price back.
Your business lost half of it's value because of ownership change. That is why without long term contracts your business can't be valued on full gross.
Do restaurants need contracts to get full value when the owner wants to sell?
A good restaurant will have in one night more customers then a LCO will have in one year. Some customers that may be lost and with such a large customer pool they are of no importance to judge what a business is worth.
What is important that there are 10 years of IRS income to judge that restaurants worth.
Yeah there is an automatic contractor law that covers Huskers if ya did work for someone and they don't pay. Contracting them in doesn't work, they wriggle out if they want to and the only accounts I've ever had significant problems with are the ONES I DID CONTRACT.
I know go figure. But it makes sense that its hard to get a guaranteed price on me for that reason. Life isn't guaranteed unfortunately anyhow. Only the fact Earth and Heaven will be here tomorrow.
My customers wouldn't retreat unless the buyer was a slacker, or screwed them somehow. They are all pretty easy.