Business Overview

This is a commercial cleaning/janitorial business that was established since 1963 by the current owner. The business is selling fully equipped operating accounts to a buyer. This company provides nightly janitorial services that include trash removal, vacuuming, dusting and cleaning of the restrooms. They also provide the following specialty services: carpet cleaning, stripping and waxing floors. The buildings that are cleaned consist of both office and warehouse space. The accounts are fully staffed. This is a great way to get into business for yourself and keep your full time job.

A buyer would over oversee these accounts each week and works approximately 8 hours a week. The business has a time keeping system that monitors the employees time in each building.

Financial

  • Asking Price: $54,900
  • Cash Flow: $36,000
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1963

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:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

A buyer can conduct the operations of this business from their home.

Additional Info

The company was established in 1963, making the business 59 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. Nevertheless, the true reason and the one they tell you might be 2 completely different things. As an example, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current decrease in revenues, or an array of other reasons. This is why it is extremely important that you not rely entirely on a seller's word, but rather, use the vendor's answer together with your total due diligence. This will paint an extra practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too small. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new customers? Often times, companies have repeat clients, which develop the core of their day-to-day earnings. Certain elements such as new competition growing up around the area, road building, as well as employee turnover can affect repeat clients and also adversely influence future incomes. One important point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the better the chance to build a returning client base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood typical family earnings impact future earnings prospects?