6'FIGA ASK ~ "HOW MUCH CAN A MILLION DOLLAR CC COMPANY SELL FOR? ...AND WHERES THE SUPPORTING DATA | TruckMount Forums #1 Carpet Cleaning Forums

6'FIGA ASK ~ "HOW MUCH CAN A MILLION DOLLAR CC COMPANY SELL FOR? ...AND WHERES THE SUPPORTING DATA

Blain

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For a moderately proven business, with solid systems in place, 5x net revenue.

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Nov 24, 2012
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roughly, again I was not privy to all of the numbers. I was his right hand man and if he was still in bizz today I would still be working for him. I would be a regional manager at this point if tragedy had not struck.

Instead I am out here trying to emulate his success while attempting to avoid his failures and shortcomings.

A curse and blessing at the same time.
Do you have to provide healthcare insurance to your employees?
 

shane deubell

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I would think for an owner operator to reach the promise land a good goal would be $150k a year Gross with a net in the $100k-$115k range.

Definitely know people who have achieved that and think it is practical, realistic.

Any thoughts?
 

Steve Toburen

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I would think for an owner operator to reach the promise land a good goal would be $150k a year Gross with a net in the $100k-$115k range.

Definitely know people who have achieved that and think it is practical, realistic.

Any thoughts?
I agree, Shane, with three caveats: (I had to look that word up!)

1. This 150K year owner-operator that is (in most part of the country) enjoying a good lifestyle should also be funding an aggressive Personal Investment Plan preparing for retirement and ...

2. Should also have really good disability/ life insurance and must also...

3. Learn to say "no". (When you are the only "employee" it is tough to pass up work and then it can affect "more important things" such as the "Four F's" (Faith, Family, Friends and FUN!) :)

Steve

PS Oh yeah, this O/O needs to really really charge more... a LOT more! Here's why:

Start charging more, a lot more- People are happy to pay more for the personal
attention they receive when they fly first class. Yet most owner-operator carpet
cleaners do not capitalize on the huge benefit they have over large companies- the “first class”
experience of having the owner doing the work. With today’s personal security concerns and demand
for quality, you can and should be charging more, a lot more, for the personal attention of a
master craftsman. You MUST quit competing with the large companies on price. Your customers will
be delighted to pay for the prestige of having the owner of the company tenderly care for their
home … IF you require them to do so.
After all, people always expect to pay more to “fly first class”. :)

This is from my "Lone Wolf" manual for owner-operators. It is free for the asking by emailing me at stoburen@StrategiesForSuccess.com
 
Nov 24, 2012
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I would think for an owner operator to reach the promise land a good goal would be $150k a year Gross with a net in the $100k-$115k range.

Definitely know people who have achieved that and think it is practical, realistic.

Any thoughts?
Those figures will put him in the top 5% of ALL income earners in the entire country.

Quite an achievement to be in such rarefied air compared to millions of people wouldn't you say? Or should he shoot for the top 3%?
 
Nov 24, 2012
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I agree, Shane, with three caveats: (I had to look that word up!)

1. This 150K year owner-operator that is (in most part of the country) enjoying a good lifestyle should also be funding an aggressive Personal Investment Plan preparing for retirement and ...

2. Should also have really good disability/ life insurance and must also...

3. Learn to say "no". (When you are the only "employee" it is tough to pass up work and then it can affect "more important things" such as the "Four F's" (Faith, Family, Friends and FUN!) :)

Steve

PS Oh yeah, this O/O needs to really really charge more... a LOT more! Here's why:

Start charging more, a lot more- People are happy to pay more for the personal
attention they receive when they fly first class. Yet most owner-operator carpet
cleaners do not capitalize on the huge benefit they have over large companies- the “first class”
experience of having the owner doing the work. With today’s personal security concerns and demand
for quality, you can and should be charging more, a lot more, for the personal attention of a
master craftsman. You MUST quit competing with the large companies on price. Your customers will
be delighted to pay for the prestige of having the owner of the company tenderly care for their
home … IF you require them to do so.
After all, people always expect to pay more to “fly first class”. :)

This is from my "Lone Wolf" manual for owner-operators. It is free for the asking by emailing me at stoburen@StrategiesForSuccess.com

I Agree.
 

Spazznout

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Those figures will put him in the top 5% of ALL income earners in the entire country.

Quite an achievement to be in such rarefied air compared to millions of people wouldn't you say? Or should he shoot for the top 3%?

Break it down.
150000 dollar goal divided by
46 weeks work due to winter
means you only need to gross $3488 per week on average.
Not that far fetched and I would say yes it is a good first goal.
 
Nov 24, 2012
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Break it down.
150000 dollar goal divided by
46 weeks work due to winter
means you only need to gross $3488 per week on average.
Not that far fetched and I would say yes it is a good first goal.
Depending on the fella, it could be his more than he would ever need to live a VERY comfortable life. Some people don't need to SPEND as much money as others
 

shane deubell

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Those figures will put him in the top 5% of ALL income earners in the entire country.

Quite an achievement to be in such rarefied air compared to millions of people wouldn't you say? Or should he shoot for the top 3%?
Good enough for me!

I like to play hooky too much...
 
Nov 24, 2012
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Good enough for me!

I like to play hooky too much...
I like to say that how much a person makes is related to how much they need/want to Spend.

Some folks have a 5000 sqft home, some have a 15oo sqft.

some buy used luxury cars for cash 20k, some by good old reliable American steel for 2k cash
 
Nov 24, 2012
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Me I just like to travel to sandy beaches, and ultimately at the end of the day strategize with small business owners to increase their profitability thru Marketing, & Sales strategies. Which I can do remotely from a beach some where

Until I reach a world class level I'll use the skills I acquire along the way to earn a nice bounty in this industry...as well as outside of it as well.

Generate A Lead
Monetize A Lead
Annuitize A Lead


....rinse & repeat
 
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Jul 28, 2013
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Put yourself in the buyers seat...what's to stop the crew from viewing you as a prick & quitting?

Especially since it happens ALL THE TIME when nee management takes over.

They are not obligated to stay. Most dont.

When Qcare in atlanta got sold most ALL their top earners left cuz the new guy was too disciplined

I think the way it should have been worded..." When a company is "turn key"...meaning you have simplified your business so much that any person knowing absolutely nothing about your business can feel confident he/she can step into your company and be successful. The only way to have this happen is because your company has provided every scenario for success in the most simplistic of ways" so simple, any competent person can slot into any position your business may need to fulfill.
 

Rich Cleaner

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I'm just curious. 2 part question:

1. Hypothetical ~ If a cc company is grown to a multi truck operation doing 1 million gross sales (please, please eggheads lets not get too submerged in the numbers here..best guess will do), which I think is reasonable, then how much could that owner cash out for

2. In all the years of reading the industry magazines, I've gotten an orgy of articles on getting pee out and Market research on the average square feet a cc truck cleans per year....but very little if not NOTHING on how & how much CC companies are sold for. Considering this is what we are all to strive for how come neither Cleanfax nor ICSmag have provided quantifiable numbers for us?

Who are selling these small to mid size businesses, who are they selling them to & how much are they selling them for? Also how recent is the data? Pre Recession sales when banks were promiscuous with money (credit) have to be scrutinized a little because that type of easy capital is as readily available you'd agree.

I know @Rich Cleaner sold a couple, maybe he can shed some light ....

6'
Well I guess I am little late to the party... I read a bunch of the replies - admittedly not all of them -

There are at least five valuation methods for a business (if you want to get all technical and MBA-ish, which I will NOT do).

So there's a good reason no one ever sets a "gold standard" as to what a carpet cleaning business should sell for if it makes X dollars...

....because it depends on how good you are at MARKETING the value. What else would you the "marketing" guy's answer to be!

So getting "top dollar" has next to nothing to do with the valuation method, and everything to do with how much you can convince someone of the value of buying your existing business vs. starting up their own.

Plus, pricing a business to sell is not an exact science because there are far too many variables - both in the way the business is structured (Will they be buying a "job", or a well oiled cash machine?), and in the type of buyer your dealing with (Did they get an inheritance? Are they borrowing the cash? Is it an investment or are they looking to run it themselves?).

But here's the bottom line:

A Business Is Only Ever Worth Whatever Someone Is Willing To Pay For It! Period.
 

Steve Toburen

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But here's the bottom line:

A Business Is Only Ever Worth Whatever Someone Is Willing To Pay For It! Period.
True.

Steve

PS Remember that at the end of the day buying any small service business is going to be more of a "lifestyle decision" than a financial one. I think my business broker (who did a superb job) put it best: "Steve, when your prospect can see their name on the side of your vans it is all over but the negotiating." And it happened exactly that way... :)
 
Nov 24, 2012
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Well I guess I am little late to the party... I read a bunch of the replies - admittedly not all of them -

There are at least five valuation methods for a business (if you want to get all technical and MBA-ish, which I will NOT do).

So there's a good reason no one ever sets a "gold standard" as to what a carpet cleaning business should sell for if it makes X dollars...

....because it depends on how good you are at MARKETING the value. What else would you the "marketing" guy's answer to be!

So getting "top dollar" has next to nothing to do with the valuation method, and everything to do with how much you can convince someone of the value of buying your existing business vs. starting up their own.

Plus, pricing a business to sell is not an exact science because there are far too many variables - both in the way the business is structured (Will they be buying a "job", or a well oiled cash machine?), and in the type of buyer your dealing with (Did they get an inheritance? Are they borrowing the cash? Is it an investment or are they looking to run it themselves?).

But here's the bottom line:

A Business Is Only Ever Worth Whatever Someone Is Willing To Pay For It! Period.

Ladies & Gents......this guy ^^^^ knows his sh*t.

#Respect
 

Steve Toburen

Strategies for Success
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I think all of us get a bit dissatisfied with our life/ business one in awhile. It comes back to the old "I have to" versus "I want to..." This is what came out in my conversation with an Alabama carpet cleaner that just wants out...

Steve

PS I'm reminded of Papa Nick Paolella's "Find a job you love and you will never work another day in your life!"
 
Nov 24, 2012
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I think all of us get a bit dissatisfied with our life/ business one in awhile. It comes back to the old "I have to" versus "I want to..." This is what came out in my conversation with an Alabama carpet cleaner that just wants out...

Steve

PS I'm reminded of Papa Nick Paolella's "Find a job you love and you will never work another day in your life!"
can't speak for all, but I'm cut out to do what I'm not so keen about if the profit is good
 
Nov 24, 2012
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....also, considering I'm an incurable optimist, I'll find the upside to most/just about anything I'm involved in.

And that I also try to better My best in sales and productivity keeps it new, fresh and challenging.

6'

p.s.
Reminds Me of what falcons running back Steven Jackson said when asked how he was able to put up so many yards consistently while playing for a bad team (10 years with the rams).

He responded that he would play mental games with himself during the football game. For example he would never look up at the score board and imagined every drive as the last and a game winning drive. It kept his motivation & ambition to succeed at peak levels.

The Alabama cleaners problem is a mental one. He needs to only compare himself to his previous self and strive to improve upon it if his mind cannot handle comparing himself to others -- which is ok, but you have to have a very healthy self image otherwise it could be debilitating.

6'
 
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rob allen

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....also, considering I'm an incurable optimist, I'll find the upside to most/just about anything I'm involved in.

And that I also try to better My best in sales and productivity keeps it new, fresh and challenging.

6'

p.s.
Reminds Me of what falcons running back Steven Jackson said when asked how he was able to put up so many yards consistently while playing for a bad team (10 years with the rams).

He responded that he would play mental games with himself during the football game. For example he would never look up at the score board and imagined every drive as the last and a game winning drive. It kept his motivation & ambition to succeed at peak levels.

The Alabama cleaners problem is a mental one. He needs to only compare himself to his previous self and strive to improve upon it if his mind cannot handle comparing himself to others -- which is ok, but you have to have a very healthy self image otherwise it could be debilitating.

6'
@Six Figure Solo Cleaner makes a valid point. Not everyone can stay motivated. I have at down and mediated on more than one occasion as to why I am so motivated. I link it to discipline.