Price: $1.2m + SAV + Training...
Existing cleaning businesses may be focused on domestic or commercial cleaning, or both. They range from sole trader style business to large companies with multiple employees. In order to buy an existing cleaning business you should register for alerts so you are notified when a new business is listed. You can then make contact with the seller and request more information. Usually the seller or broker will ask you to complete an NDA to ensure the confidentiality of the business. Buying a cleaning business requires professional advice during the process to ensure the due diligence is conducted properly.
A good cleaning business will have contracts in place to ensure future work is established. Depending on the size of the business you are purchasing you may be looking at managing staff or be a sole operator. A well established cleaning company will have a solid brand, good reputation and repeat clientele.
Cleaning businesses tend to focus on two types of clients, residential or commercial. Depending on the cleaning business you are looking to purchase it may services both of these clients, or be solely focused on a particular type. In terms of the service they offer, cleaning can include things such as; houses, offices, roofing, machinery, cars, commercial grade, driveways, windows etc.
The benefit of a cleaning business is that a lot of the training can be provided on the job. Depending on the size of the business you may have a team to manage and require some management experience. Interpersonal skills and dealing with clients is important. A cleaning business relies heavily on keeping clients happy so you need to have the ability to communicate and solve problems. You will also require marketing skills if you wish to grow the business and gain more clients.
Usually a cleaning business has a lower entry point depending on the size, so requires less capital. A cleaning business can also grow over time once you have the correct equipment and systems in place. The benefit of a cleaning business is that once you know how to properly perform the duties you can continue to apply that method to more clients and more locations, so you can hire more staff and expand the business. If you are buying a small cleaning business, there probably won't be any rent and your expenses will be relative to the number of clients.
Cleaning businesses are usually appraised based on a multiple of the net profit to the owner with some market predictions. It's important to seek professional advice when buying a business so you can conduct proper due diligence. It’s important to note that an appraisal is an estimation of what the business could sell for in the current market, whilst a valuation is conducted by a licensed business valuer.
The majority of the income is by providing cleaning services to clients. It is usually based on an hourly rate of service. A lot of cleaning companies that work with commercial clients have contracts to perform a certain number of hours on a set schedule such as cleaning an office after work hours.
The best way to keep track of new business opportunities is to save your search result. You will be notified as soon as a new cleaning business is listed for sale.
Selling a cleaning business requires preparation. Having a solid exit strategy will mean your business is ready for sale and has a greater chance of achieving an optimum price. It’s important to be prepared for the sales journey as it usually takes around 6-9 months to sell a business in Australia. Check out Bsales 6 steps to prepare a business for sale which will provide you a checklist and a general step by step guide. Business brokers are licensed professionals who can assist with the sale of your business and market it on websites such as Bsale. Check out the Find a Business Broker section to locate a suitable broker for your business. Bsale also offers advertising direct to business owners.
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