Listing ID: 80651
This business is a unique and innovative business model revolutionizing the flooring industry. Ultimately, we are a labor company specializing in the installation of floors, not the sale of flooring products.
The owner/operator meets with customers, completes the installation estimate, and then allows the customer to source the actual flooring from anywhere they see fit. Once the estimate is performed and the job is booked, Owners manage subcontractors who complete the labor and spend their time as the main point of contact for the customer ensuring a smooth and professional experience.
By operating this type of model, Owners are home-based with no need for expensive real estate or complicated leases, they do not have any overhead as they have no need for flooring inventory, and they do not have any employees as the labor is completed by 10-99 subcontractors. This simple and cost-effective concept allows Owners to earn over $808K in Average Gross Sales and enjoy a quick ROI with our extremely attractive margins.
If that wasn’t enough to make the business attractive, the corporate team also handles the majority of the marketing, helping Owners find new customers, and runs a call center that fields all customer queries and completes the scheduling.
- Asking Price: $97,580
- Cash Flow: $217,394
- Gross Revenue: $808,547
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
For initial training, we host Owners at our corporate headquarters in Colorado for two weeks. After that, they go back to their territory and run their business for 6-7 weeks while gaining true on-the-job experience. After this period, we invite them back to Colorado for an additional week of training, covering specifics related to their experience working the business. We have found this type of training to be extremely successful and something our Owners rave about!
This Business Is Home Based
The venture was founded in 2008, making the business 14 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. However, the true factor and the one they tell you might be 2 totally different things. As an example, they might claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in profits, or a range of various other reasons. This is why it is extremely important that you not depend entirely on a vendor's word, however instead, use the seller's solution combined with your general due diligence. This will paint an extra sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new customers? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day revenues. Specific aspects such as new competitors sprouting up around the location, road building, and employee turn over can impact repeat consumers as well as negatively influence future earnings. One important thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the better the possibility to develop a returning consumer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean house income effect future revenue potential?