locksmith business for Sale
Bob De Weese
Jan Radford wrote:
>
> I would like to let everyone know of my business that is for sale. It is a
> small one man locksmithing business located in southern Oregon. It is the
> main locksmithing business for 3 towns within a 40 mile radius. The
> approximate gross income is $10,000+ with no advertising except Yellow
> Pages in the last 7 years. Growth potential is great. Business includes
> all tools and inventory. Shop is located in home, so would have to
> relocate. Asking price is $18,000. If interested, please contact
> rs...@msci.net.
$10,000 after 7 years? Was that a typo?
I've been in business for ten years. In a town with more locksmiths
than you can shake a slim-jim at, I _cleared_ $9,000 my first year,
$14,000 my second year, $18,000 my third year, $26,000 my third year,
etc.
It leveled off after about six years but to be totally honest, I'm sure
I could still improve my bottom line even more if I were more motivated
to do so.
FYI - A generally accepted method for establishing an "asking price" for
a business is usually by going by what ever the busines grossed during
the last calender year. If a business grossed $100,000 last year, the
asking price would $100,000 (usually) - lower if you're looking for a
quik sale.
--
Bob De Weese
Certified Professional Locksmith
bear...@bigfoot.com
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Jan Radford
TRoy104830
bear i have been reading your commments alot. most of these comment are
about locksmithing, and are correct anwers you give, but please dont act like
your an accountant. leave that up to the real accountants but
i will give you some expert advise as an accountant that is the starting
point but by no means is the norm.
Pro Lock
>business for Sale
>From: troy104830@ao
Actually, Bobby is right!
I have also seen all sorts of goofy business valuations from "one year's net"
to "ten times gross profit, plus inventory", and everywhere in between.
The rule of thumb, with no real estate or vehicles included, is one years
gross, plus inventory, if the inventory is popular and current (which it
usually is not).
True, you can ask whatever you want, but this is the benchmark for "good "
businesses, and a neglected one often goes for nothing except what an auction
will bring. Too bad many owners do not make plans for sucession. Much value is
placed on the owners skills, which will no longer be with the company.
Goodwill quickly evaporates when a newbie trys to pass himself off as an
expert.
By the way: Auctions usually bring about .25 on the dollar for useable stock
and good equipment, and .05-.10 on the dollar for crap.
Locksmith businesses are unique, because a beginner often cannot afford to buy,
and an experienced smith can build cheaper than buying. Seldom does an owner
sell, or die, and get more for his locksmith business that this benchmark..
In this area, I'd put my money on an experienced Bobby, before I'd rely on a
professional pencil pushers goofy figures.
Been there,Done that!
JV
Bob De Weese
TRoy104830 wrote:
>
> bear i have been reading your commments alot. most of these comment are
> about locksmithing, and are correct anwers you give, but please dont act like
> your an accountant. leave that up to the real accountants but
> i will give you some expert advise as an accountant that is the starting
> point but by no means is the norm.
I really don't think that one would need an accountant to tell them what
_their_ business is worth provided that a) they've been in the industry
long enough to know what other "like" businesses have been sold for in
the past or b) have enough smarts to do a little homework.
Most people are not accountants but they do have a general idea of what
their home is worth. The same goes for a business. _If_ you know that
business as _intimately_ (for lack of a better term) as you know your
house, it's pretty easy to put a dollar figure on it (as long as you
don't allow emotion or greed to become a part of the prossess).
Pricing "high" and haggling down is how you sell used cars - not a
business.
Take a look in the clasified section of ANY locksmith trade magazine.
Most of the "Business For Sale" ads that list an asking price, list one
that is roughly equal to the last year's gross.
No TRoy, I'm not an accountant. But I've been a business owner for a
long time, and a professional locksmith for even longer - Long enough to
know "what works".
This is not meant as a flame and I, in now way mean to belittle your
profession. I just feel that I _am_ a little more qualified to know
what my business is worth in this situation.
Bobby
Henry E Schaffer
In article <34A31A...@erols.com>, Bob De Weese <bear...@erols.com> wrote:
>Jan Radford wrote:
>> ... approximate gross income is $10,000+ ...
>
>$10,000 after 7 years? Was that a typo?
>
>I've been in business for ten years. In a town with more locksmiths
The $10,000 *gross* really has got to be a typo. What are the
expenses and overhead? Phone and yellow pages listing, truck (?),
locksets and key blanks, ... Could this amount to less than $4,000? At
that amount, the net would be roughly $3 per hour!
> ...
>FYI - A generally accepted method for establishing an "asking price" for
>a business is ...
For a business that nets $3/hr, I'd want the owner to pay me to take
it!
--
--henry schaffer
h...@ncsu.edu
Pro Lock
If the business is in the boonies, it may be a part time or hobby business.
JV