Listing ID: 67486
Excellent opportunity to own an established and highly rated janitorial service based in Newport News, Virginia. The business was founded in 2000 and serves clients across Hampton Roads. The owner puts an emphasis on providing high quality cleaning services and building long term relationships with customers. The business currently operates from a leased office space but can easily be relocated within the service area or even potentially be run from a home office.
There are currently about 175 recurring clients and new customers are frequently reaching out to the business. The business is 99% residential service with a couple of commercial accounts. There are currently 9 employees who are divided into 3 teams that work 5 days a week and there are times when they work 6 days a week due to demand. A significant portion of the business comes via referrals and word of mouth. The business has shown growing revenue and cash flow numbers over the last four years and there was no real negative impact to performance of the business due to the pandemic.
After over 20 years of owning and operating the business the owner has decided it’s time to retire. This represents an excellent opportunity to take over a well-run business with a robust customer base. The business has top notch reviews on many popular online review platforms. The Hampton Roads area has seen significant growth over the past 10 years and this trend is expected to continue into the future. Don’t miss out on this opportunity and contact us today to learn more!
- Asking Price: $115,000
- Cash Flow: $85,883
- Gross Revenue: $401,918
- EBITDA: N/A
- FF&E: $30,000
- Inventory: $1,500
- Inventory Included: Yes
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:600
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The business operates out of a 600 sq ft office space with storage area, break room and bathroom which is leased for approx. $350/mo. The business can be relocated to anywhere in the service area or potentially even run as a home-based business.
Seller will provide necessary training and support.
Owner is retiring.
There is standard competition for the industry and area, but this business has been established for over 20 years and maintains a strong position in the market against other independent cleaning service companies as well as franchise brands.
There is room to grow and expand the business. A new owner might consider seeking out more commercial, government, or military contracts. It would also probably make sense to implement a modest advertising/marketing campaign to create awareness about the business or have a referral program for existing clients.
The company was started in 2000, making the business 22 years old.
The transaction shall include inventory valued at $1,500, which is included in the requested price.
The company has 9 employees and is situated in a building with estimated square footage of 600 sq ft.
The property is leased by the business for $350 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell businesses. However, the genuine factor and the one they tell you might be 2 completely different things. As an example, they may say "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in revenues, or a variety of other factors. This is why it is very crucial that you not rely entirely on a seller's word, however instead, make use of the vendor's response along with your general due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans in order to cover things such as supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that revenue margins are too small. Many companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new consumers? Many times, companies have repeat customers, which develop the core of their everyday profits. Particular aspects such as new competition growing up around the area, road building, and also personnel turn over can impact repeat consumers and adversely affect future earnings. One essential thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business regularly, the higher the chance to construct a returning customer base. A final idea is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the neighborhood average home income effect future earnings prospects?