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  #21  
Old 02-22-2011, 08:42 PM
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New Leaf Maint New Leaf Maint is offline
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Join Date: Feb 2009
Location: Eastern Idaho
Posts: 35
Quote:
Originally Posted by NicholasMWhite View Post
I think in this industry until a company has at least 2 crews and a manager with $500,000 in sales it has very little value. Short of that you're essentially just buying a list of pre-qualified sales leads and some equipment.

If I were the property manager at a commercial property and my contractor sent me a letter saying that they are selling their company to "New Leaf Maintenance" I would take that as a sign that it is the perfect time to take bids for the upcoming season. The way I see it, I'm getting a new contractor either way I may as well check prices while I'm at it.

I know it can be tempting but I think $95,000 for a list of sales leads is just too much. Any signed contracts he has will probably be with signed with his company so unless you take his companies name and keep the company as an existing entity (which I don't think is your plan) the contract will technically be void when you take possession.

I realize the numbers may work out. But that's assuming 100% retention for 5 years, which is highly unlikely. I honestly think you are better off using that $95,000 over the next five years for marketing. I think $19,000 a year in marketing will bring you in a heck of a lot of customers.

That's my opinion, take it or leave it.
I can keep his companies name and I might if it makes sense. I've thought about the fact that I could probably get a lot more clients with that much money for advertising but I don't think that a bank will like the idea of lending me that much money to market the company. But your right and I wish that I could do that much marketing.

I could also do more sales and cold calls but I don't have the time with my current business that I have. I have one crew me and another employee. I'm hoping that if the numbers make sense that with his crew and hire another worker for my crew that they can make enough $ for me to start doing full time sales, customer relations and other management responsibilities. It's just really hard to grow a company when your working in it and I'm hoping that this could solve that problem.
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  #22  
Old 02-25-2011, 01:29 PM
GrassesGuy GrassesGuy is offline
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Join Date: Sep 2008
Location: Omaha Nebraska
Posts: 326
Ok you guys say people leave right? Why is that? Do you tell the customer that someone else owns the company. If your buying out a guy that big why do the customers even neeed to know that he got bought out. Keep the trade name the same and operate two lawn buisnesses, after a few years decide on whether merging the two into one name etc.
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  #23  
Old 02-25-2011, 01:39 PM
GrassesGuy GrassesGuy is offline
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Join Date: Sep 2008
Location: Omaha Nebraska
Posts: 326
Getting a bank loan is not hard when it comes to buying a profitable buisness assuming you got 20 percent down and solid credit. All the bank cares about is that the buisness is profitable. Of course you will most likley have to use equiptment as collatoral. I would just secure a buisness loan to grow your own buisness and advertise the **** out of the market with Radio, Tv, internet etc. The old fashion way is always better. Or tell the seller all the things we have said on here and get him to accept a lower price. Becuase if you lose alot of the accounts your up **** creek and downsizing fast and if your married your wife won't be happy.
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