i have bought 5 businesses and they are only worth what you are willing to pay. are they big spenders,fill in gaps in routes, you can sell add ons the other guy couldn't.then they are worth 5%-15 of the yearly gross or about one season net profit. at least that is what i have found. used old equipment is good for the junk pile and not much else, i don't get into the nitemare of buying used unless you need to fix things
At least in my area, San Francisco Peninsula, what you said is rule of thumb, though I hear some people are asking 4 months plus cost of equipment. <br>If your thinking of doing this, keep in mind these few things<br>You're going to loose some clients that you buy<br>It's legal to buy a business, but illegal to buy a route.---no way to really go to court if the seller steals the clients back unless you take this next step.<br>Make up a contract that specifically states that the seller cannot get back into your area and or within 200 miles of your location.<p>I had a good friend of mine get burned real badly because he did not take this last step. After an extended vacation from Europe, the seller called or visited his old clients and asked them to hire him back. Out of 246 clients, my friend lost 230 to the original seller.<br>John<br><p>----------<br>J-LC Landscaping & Maintenance Gardening<br>C-27 Ca Contr# 770044
SOMEONE DOWN HERE DID THE SAME THING WITH A MILLION-$$PLUS AIR-CONDITIONING BUSINNESS.SOLD IT TO THE GUY THEN BOUGHT ALL NEW TRUCKS AND EQIP.AND CRANKED BACK UP RIGHT DOWN THE ROAD! WHAT A DIRTY DOG!<p>----------<br>DON<br>LIANNES' MOWING
Offer to buy the accounts for 4 cuts apiece, and make up a contrqct stating the cust. will stay with you for 30 days, at which time the may continiue or cancel service. At least you'll get your money back that way, and have the chance toi prove you self.<p>Also include a "competition" agreement.
I bought some accounts this year from three different people. I think it matters who and how much. Its not good to buy too much you have to be very very careful. Remember there is always a reason for selling. If its a good reason then its ok but if the reason is B.S. then be veary. You can get a bad deal and you can loose it all and you can get a good deal too but its risky unless you have all paperwork. Talk to a lawyer too. Good luck.
Build you own accounts in the areas you want to work. Don't get locked into a bunch of loser jobs just to gain revenue.<p>Remember just to play in the mowing biz you<br>will need at least two of everything and<br>you better have it with you.