Entrepreneurs build up cleaning businesses for plenty of reasons. In our 20
years’ experience as business brokers, we would definitely list cleaning
businesses as being one of the most popular types of businesses that are
frequently listed on the market.
Like any enterprise, people get into the cleaning industry for lots of lucrative
motivations. Similarly to any other kind of business, lots of business owners
dream of one day cashing in on a major paycheck for all the hard work they’ve
put into building their business. Yet, not all of them may know just how to go
about looking for prospective buyers, or how to get their business ready for
Cleaning businesses may seem to not require very complex efforts in terms of
setting up and operation. Yet, scores of entrepreneurs are able to quickly
establish a good market impression through successfully run cleaning outfits.
And this is a mindset that tends to carry on with the next buyer, who holds the
same intent of profitability by purchasing a cleaning business.
Figuring Out a Price for Your Cleaning Business
If you’ve built a cleaning business that you can feel proud of, then it’s quite
likely that you would have already thought of a suitable selling price. However
proud you are of your efforts, it’s time to evaluate whether or not that price tag
would be agreeable to other parties you can count as potential buyers.
A helpful way to evaluate the feasibility of your selling price is by figuring out
exactly what type of buyer you would be selling to. And cleaning businesses
are generally sold to either of two types of buyers: individuals seeking to enter
the market place, or competitors who want to expand their current portfolio.
Keep these two types of buyers in mind, and it will give you a great starting
point to prepare your cleaning business for sale.
As far as selecting a selling price goes, don’t just pick a nice rounded number
that only you think you would be happy with. Figuring out your selling price
should involve knowing what you are trying to achieve by selling your cleaning
business, and exactly what number you meet such a need. This is often
referred to as having an exit strategy, and it would be best for you to know what you
are selling your cleaning business for, before you settle on an amount.
For example, will you be using the profit to enter another investment,
or have you planned to use the proceeds to fund more personal expenses?
The Essentials You’ll Need to Sell Your Cleaning Business
Always remember: the worst time to sell your business is when things are
going badly, and the best time to sell is when everything is going great! Your
cleaning business can only be considered saleable, if you can prove your
history of continual profits, happy clients, and successful operations at market
Accountability goes a very long way when preparing a business for sale. You
may have heard this piece of advice before, but it stands especially true no
matter what sort of business you are looking to sell. You’ll need a clean set of
books to show how every cent that goes in and out of your business can be
accounted for. It’s what impresses investors and buyers alike, and your books
should show no instances of ‘money under the table’. Five years is ideal as far
as being able to account for your expenditure goes, but the farther back you
can trace your books, the better for the sale of your cleaning business.
Buyers pay for provable profit. So don’t scare them off by poking holes at your
financial statements, or making too many verbal claims about what the
company has made. You may be discrediting your own financial records by
communicating how ‘eager’ you are to get rid of your cleaning business. And
this tends to be what scares most buyers away. Prospective buyers are
always comparing your business to the ones that they’ve seen while shopping
around. So remember that keeping good books is always one of the easiest
ways to make your business stand out from the others.
We Can Help You Sell Your Business
As a professional broker, we field a team of agents who work with an
extensive network of contacts and resources. Our aim is to bring immediate
benefit to business owners looking for a buyer or seller.
Depending on our clients’ preferences, we are adept at keeping your
business’ marketability as a top priority. Whether it’s to do with closing a deal,
finding your next business opportunity, or moving on from an existing
enterprise, Selling Your Business provides expert counsel and execution
when it comes to representing you. Call us at 03 9088 8006, or email us to
find yourself a better option with our team.