Should I stretch myself to buy this round?

[jamiesmack]

I started window cleaning properly about a month ago, and whilst I've been ticking along quietly its been a bit of a struggle picking up enough work, and with winter coming its been on my mind a little. Ive been canvassing flat out and sorting website etc, so I'm sure it will come.

Thing is, a windy in a neighboring town is retiring and has offered me his 200 customer round for 2 x the monthly price. Most of the work is a 25 minute drive from home, but is all pretty compact. The problem is, I'm a bit pushed for cash at the minute, having set everything up recently and cant really afford it. I could probably loan a bit of money from my old man for now but I dont know if its worth it.

Do you think its too good an opportunity to turn down or should I just wait for my own round to build?

 

[Extremecleansussex]

Two times the monthly price is a bargain. Offers like that don't come along very often; I'd find the money somehow and buy it.

Sent from my iPhone using Tapatalk

 

[Green Pro Clean Ltd]

As long as the value is there and not all £5 jobs then steal it mate.

 

[simon]

try n work out how much it pays per hour if its good i'd find the cash somehow as @Extremecleansussex says x2 offers dont come along often

 

[High-tower]

If it is well established, and well priced work, buy it! 2 cleans and its paid for.

 

[Dave B]

X2 is unheard of

If he can take you round a few random customers that you choose and show it's legit you'd be mad not to

 

[TolishAPurd]

Snap it up! Even if it is all low priced at least you will get lots of exposure, and when you add up the costs of advertising, canvassing etc, its a bargain. If you need to put the money up in 6 months so be it.

 

[Diwrnach]

Do it, as long as its decent customers etc and not like green said £5 a house.

You'll make the money back in no time, the return on investment is really quick.

 

[Dave B]

Only downside is you can't write the cost off on expenses

Taxman don't let you

 

[Diwrnach]

Only downside is you can't write the cost off on expensesTaxman don't let you

Really? why not?

 

[Green Pro Clean Ltd]

Only downside is you can't write the cost off on expensesTaxman don't let you

Dont know where you got that gem from, you are purchasing an asset for the business, no different to advertising or paying a canvasser, I have had £800 of purchased work written off last year.

 

[Green Pro Clean Ltd]

With the rare possibility (not probability) /emoticons/tongue.png that Davey is right, just put down the expenditure as 'Canvasser Payments'

 

[Posh]

If its good

Grab it

Bargain

 

[Tuffers]

Are you trad or WFP James? If it's an old boy my gut feeling would be he done them all trad and cheap. I might be wrong, but it's defo worth looking at. I'd also find the money somehow to buy it if it was a good un. You could even buy it and flog it.

 

[Dave B]

Really? why not?

I read it in a discussion on here last year

Something to do with buying"good faith" rather than an asset

I may be wrong

Gonna look into it now

 

[Dave B]

It seems i am talking about an old hmrc ruling which states that if before 2002 you can't claim it

"Intangibles Regime From 1 April 2002 the new Intangibles Regime allows companies to claim an income deduction for tax purposes based on the goodwill amortisation shown in their accounts. Where the goodwill was acquired from a related party (such as a sole trader who controls the company) the Intangibles Regime will only apply if the goodwill was created wholly after 31 March 2002 11.

Where goodwill has been acquired from a sole trader and income deductions are made under the Intangibles Regime, we will be concerned to confirm both that the goodwill was created wholly after 31 March 2002 and that for tax purposes the value of goodwill equates to its market value."

 

[Diwrnach]

Are you trad or WFP James? If it's an old boy my gut feeling would be he done them all trad and cheap. I might be wrong, but it's defo worth looking at. I'd also find the money somehow to buy it if it was a good un. You could even buy it and flog it.

I did a quote for a dentist last week, old boy (retiring), trad, been doing it for years, £4 every 2 weeks.......

 

[Taxlossloz]

Buy it !

 

[boarcity]

youll never get another opportunity like that

 

[adamangler]

At 2x definately, theres very little risk involved at that money, lets say you lost half the custies which is not going to happen, you still would break even very soon, its a no brainer imo, get a loan or whatever.

 

[Tuffers]

Let's do some maths. If all the 200 houses are £5 each that's £1000 a month. Times that by 2 and Jamie has to find £2000. If they're all £10 each he will have to find £4000. BUT if the old boy was doing them at £3 a pop he'd only have to find £1200! IF he was doing them dirt cheap I'd buy it and put the prices up and probably get your money back after a month. Probably lose a few but hey ho.