Posted via Mobile Device
Originally Posted by Dave2
To get a value on the company first you would need to give yourself a salary. To hire someone like you would probably cost 40-50k (you probably work extra long hours and care a lot about the company).
I think valuing companies ends up being similar to selling something on ebay. Lots of people have different opinions, but it really comes down to what someone is willing to "bid" on the item.
That said there are some formula's that you can use to value a company, but they both have a number thrown in that is an opinion. Usually you have to guess at the growth potential of the company and the risk of failing.
I would definitely not recommend getting into a partnership. I think that will end up making things go from bad to worse. I have seen some partnerships in our industry that ended up really ugly. If I were in your shoes I would hire a manager and setup a profit sharing plan with him. Then make sure to document company knowledge (where do I order chemicals? How do I interview an employee? How do I send out bills?) somewhere that your manager has access to. I recommend Knowitall for that piece of it. Then get Software to help with billing/routing. I would go with CLIP (routing, scheduling, estimates, contact management) and QuickBooks.
Try to change your approach from working "in your company" to working "on your company." Your starting to get past the point where you have to work out in the field. Also I like what you said about wanting to pay down loans. I love the stuff that Dave Ramsey talks about regarding debt. Especially in our industry where things can change quickly season to season.
Here are some books that can give you some ideas about how to work on your company!
Great advice. I listen to Dave Ramsey's podcast every day while I work. Yesterday I heard him say his building is worth $14 million and he paid cash for it! I also like his advice from a Christian and Biblical standpoint...