Jump to content

Buying a round advice.


Dirty dan

Recommended Posts

So I’ve been offered a round to buy, never done it before as I am interested but I’m just curious what questions I should be asking and how I should take it over. I’m a bit wary about handing over money and getting stitched up

Link to post
8 minutes ago, Part Timer said:

Proof of turnover, visit to wash custys windows with seller and an introduction where possible.

I agree with proof of turnover. Apparently there are 85 custys, would I ask for an intro to all of them? 

Link to post
2 minutes ago, Dirty dan said:

I agree with proof of turnover. Apparently there are 85 custys, would I ask for an intro to all of them? 

That's probably not feasible but definitely do at least one wash with him. Not fully up on GDPR so I don't know how he is supposed to, legally, pass on customers info.

Link to post

We get offered a lot of work form other smaller companies etc.

We never buy because most of the time, the sellers work in a manner which is different to us. Therefore, there is a high likelihood of clients leaving following the sale.

That considered it is often cheaper and more effective to acquire clients via your own marketing.
Then they join up with eh way we work from the off. No client training required.

Your situation may be different but food for thought.
I would try to visit all 85 if I were you. It's a week of cleaning for one person on average I'd say. Perhaps factor that assisted week into the price?

Key questions I would look at is
How they pay. you may want gocardless and he may have lots of cash clients. upon meeting them you may find most are not IT savvy and find it a pain to pay online or GC.
History of consistent payments as part timer said. he may have a lot of messers. He should be able to show accounts of consistent cashflow into his business or account to verify the numbers. They should be willing to show this rather than you pester them for it.
How they like to be advised be cleaned. do they expect times or set days of the week. are they flexible.

 

I would be asking more about the nitty gritty details on the types of clients as they will ultimately choose to stay with you or jump depending on if they relate to your style of service delivery.

Theres this unspoken law of attraction where like minded people tend to flock together. Miserable businesses tend to attract miserable clients. Tight wads. generous free spenders. relaxed clients. picky clients etc.

It's not always about buying the work and the numbers. It's just as much about the type of customer s/he serves. They may very well expect a 20min tea and chat and if you take over and turn up dead professional with minimal chat and have people working for you, they may not click if you see what I mean. Certain businesses attract certain clients and this is the most important thing I consider when people offer to sell us work.

 

Not a precise answer I know but I hope that helps a little for consideration.
It's at least our view on the matter.

  • Like 2
  • Agree 1
Link to post

Thanks a lot for that, definitely some Important things to think about. The guy reckons it’s about 5-7 days of work. I’m going to make a note of your advice when I meet up with him this week. Thanks again, you’ve been a real help

Link to post
  • 3 months later...
On 08/11/2020 at 19:25, Dirty dan said:

Thanks a lot for that, definitely some Important things to think about. The guy reckons it’s about 5-7 days of work. I’m going to make a note of your advice when I meet up with him this week. Thanks again, you’ve been a real help

How did you get on? Did you end up buying the round?

Link to post

I have bought two rounds over the years, and wouldn't again. For some of the reasons mentioned. I still have one round, but dropped the other as the prices were ridiculously low.

Definately work the whole round with the guy, get him to have a letter drawn up to intoduce you to any clients you can't get in.

I just spit the money 50/50 with the guy I bought work from, and worked along side him for one clean.

Ask for number of jobs, average price or total value. Have a look at the area, get a rough idea of  the number of windows per house, work out the price per window, per job etc, he is charging and see if its worth it.

I wouldn't take in anything below £1.10 per window personally, but that's up to you what your rock bottom is.

If you do go ahead, give him a deadline to collect any outstanding payments, then offer to pay him for any payments still outstanding for the clean you did together. That keeps the change over smooth. 

I would also post an introduction letter, with your details, within that two weeks deadline to give any potential boggus of lost accounts to contact you if they are not happy for you to go ahead. That way your not paying for accounts you won't keep. But if it was one or two, I would unlikely haggle with the guy.

Link to post

I’ve just bought some work , it’s worth about £1.2k a month. 
The previous window cleaner texted or rang every customer 1st and told them I was taking over. 
All the customers are usually texted the night before, but the first time I did it I rang them all to introduce myself, and it worked a treat I didn’t lose one of them. 
They seemed genuinely pleased I’d made the effort. 
 

The work is well priced stuff, and I’m really pleased with it. 
He had lost his employee, and was going back to working on his own. So he was just selling off the work furthest from where he lived. 
 

  • Like 2
Link to post

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.