Business Overview

This rural garbage and recycling service business for sale in Iowa services approximately 1,300 residential customers in a 60-mile area. While their primary focus is to provide routine pickup service for trash and recycling, they also offer specialty trash pick up for an additional charge on a call-in basis. The business has built an excellent reputation for providing affordable and reliable service to their customers and receive calls to add service from new customers weekly.

Financial

  • Asking Price: $750,000
  • Cash Flow: $177,952
  • Gross Revenue: $415,521
  • EBITDA: N/A
  • FF&E: $68,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2002

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,500
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business rents a 4,500 square foot metal building to store their vehicles and supplies in. The building has plenty of room to store additional vehicles should the future owner wish to grow the business. The facility also has an ample outside parking area.

Is Support & Training Included:

Negotiable.

Purpose For Selling:

Retirement.

Pros and Cons:

The business has developed a strong brand in their territory because of their friendly drivers and consistently reliable garbage and recycling services. The current rate charged for their residential customers is very competitive compared with their larger competitors.

Opportunities and Growth:

As this business routinely receives requests from urban customers for their services, they could expand into the various towns in their area. The business could also grow by expanding their rural territory, adding employees and collection trucks, and increasing their hours of operation. Additional revenue streams could be added by offering roll-off dumpsters to commercial clients in the area or by construction debris hauling.

Additional Info

The venture was founded in 2002, making the business 20 years old.

The business has 4 employees and is situated in a building with approx. square footage of 4,500 sq ft.
The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell businesses. Nevertheless, the true factor and the one they say to you may be 2 entirely different things. As an example, they may say "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competitors, current decrease in incomes, or an array of other factors. This is why it is really vital that you not count totally on a vendor's word, yet instead, make use of the seller's response combined with your total due diligence. This will repaint a more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that profit margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract new consumers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day profits. Specific aspects such as new competitors growing up around the location, roadway construction, and also staff turnover can impact repeat consumers and adversely influence future incomes. One vital point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the possibility to construct a returning customer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the neighborhood average family earnings impact future revenue potential?