Listing ID: 80652
Business Overview
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.
Financial
- 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
Detailed Information
- 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!
Additional Info
The venture was started in 2008, making the business 14 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the real reason and the one they tell you might be 2 totally different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent reduction in profits, or a range of other factors. This is why it is really vital that you not count entirely on a vendor's word, however instead, use the vendor's solution along with your general due diligence. This will paint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Often times, businesses have repeat clients, which develop the core of their everyday profits. Certain elements such as brand-new competitors sprouting up around the location, road construction, and employee turnover can impact repeat customers as well as negatively influence future revenues. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning client base. A final thought is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the regional typical family earnings effect future earnings prospects?
