Starting a window cleaning business is not easy as you have to go through a lot to make the business succeed. It takes a lot of sacrifices, tears, and struggles to make a window cleaning business prosper. So, when it reaches the time to sell your business, the decision is always very difficult and emotional.
When this time comes, you should be ready and prepare your business as well in order to get the best deal possible. Additionally, there are several things involved in the process and that’s why we have created this how to sell a window cleaning business post to help you out.
If your window round is huge your going to need a lawyer, broker, legal expert, and an accountant to ease the process.
Here are the steps that you should follow to sell your window cleaning business:
Determine the value of your business
Start by evaluating your business and know what its worth is. A third-party valuation can give you a realistic estimate of what your cleaning business is worth. The estimate normally involves everything from equipment, average customer price, and how compact your round is, and other assets.
As a matter of fact, expect the price of your company to be anywhere from 3 to 6 times your current monthly cash flow when you sell it. A good way to value it yourself is to look at other businesses for sale on sites like www.windowcleaningroundforsale.co.uk.
Clean up your financial records
As you start the process of selling your window washing business, you should make sure that your bookkeeping is immaculate. This is because many people such as business valuation specialists and prospective buyers will have an eye on the business finances.
Get an accountant to help you ensure that your financial information is in good shape.
Have an exit strategy in place
Several factors can force a window business owner to sell his or her business. Factors such as ageing, a sick owner, a competitive threat, or lack of interest in succession from adult children can force one to sell their business.
Also, you can groom an employee to take over the business which is a whole different topic, but one to consider.
Boost your turnover
Try your best to make your business look great before the sale, as this will increase your asking price. This can be done through hiring a sales representative, marketing your business, additional advertising, or even through referral programs with the current pool of customers.
This will help to boost your sales figures when you’re preparing the business for sale.
Pick a broker
Preparing your business for sale can be time-consuming, and if you don’t want to do it your self you can always hire someone. Therefore, it is a good idea to hire a broker who can negotiate and meet potential customers on your behalf as you run day-to-day business operations.
Though you should be ready to pay the broker for these services.
Verify potential buyers
If you don’t want to hire a broker, then you will have to dedicate most of your time searching and meeting potential buyers. You will also have to conduct thorough research and advertise your business.
Your business may take a few weeks or could take 6 months to 1 year to get a buyer, depending on how much effort you put in to try and sell your business.
You need to be very careful as some buyers are fake or competitors who just want to get information from your business.
Hire a lawyer (for bigger rounds)
If you have a lawyer, then there is no need to hire one. But if you don’t have, you should hire one immediately. Actually, there is a lot of bureaucracy involved in selling a business of any magnitude, be it small or big.
As a result, the lawyer will help you to prepare the necessary documents in advance such as drafting sales contracts. Other documents that you need to prepare include tax returns and financial statements.
- Ensure that you are paid upfront
After agreeing and coming up with the contract if you use one, you should ensure that you are paid upfront and not later. Although, this can vary depending on how you agreed in the contract. Being paid upfront helps you to move on with your plan and even pay for fees associated with the transaction.
How do I value my window cleaning around?
The value of your window cleaning business is directly related to monthly turn over, any assets, and how compact your round is and what potential buyers are willing to pay. So, if you want to determine the value of your business.
Then you should determine your monthly turn over, profits, any growth trends, location of the business, and calculate the total value of your assets, and any current channels of getting new customers.
Even though sales and profits are very vital factors when considering buying a business, they are not the only factors that have the ability to increase or decrease the value of your business.
Other factors include a clean legal history, growing volume, growth potential, a great percentage of frequent customers, repetitive sales, volume stats, and documented systems and processes.
How to hand over the business to the new owner
The handover period is the time after completion of the business sale and the seller or owner of the company continues with the business sold in order to ensure a smooth and successful handover of the business to the buyer.
This can take a few weeks or months depending on what you and your buyer agree.
After you’ve found a buyer for your window cleaning business and completed the sale, you should handover the business smoothly. During the hand over period, you should help the buyer to hit the ground running with the new business.
What should the new buyer expect from you
- Every customer detail, including postcode, door number, and phone number
- Prof of all previous work carried out at the addresses you provide
- Introduction to the customers, face to face
- Any websites and phone numbers related to your business
This will be the minimum they will want of course, you can negotiate with the buyer to pay you for the handover period depending on what they want you to do.
Additionally, you should provide all the details of your employees, suppliers, business partners, and professional services. You should also surrender things like keys, security codes, keycards, alarm systems and passwords.
Clearly outline all the daily, weekly, and monthly processes of your window cleaning business.
A proper handover of the business will ensure that both of you have ample time as you complete the sale.
Conclusion
Selling your business is not easy, as the whole experience is stressful and very emotional. In order to make the process to be a little bit easier, you will have to consult with different professionals and ensure that the buyers you’re dealing with are real and not fake.
Also, you will have to convince potential buyers that taking over your business is a good idea and they will benefit from it.
As you prepare to sell your window cleaning business, don’t relax but engage fully in the business. You don’t want sales to drop or your business to become dysfunctional during this period. Follow the necessary steps and you will walk away with the best deal possible.