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Wheres the link?
http://www.ebay.co.uk/itm/Garden-Business-For-Sale-Leaf-Grounds-Gar...
That's worth a good look. The devil is always in the detail but you could spend that sort of money on a decent advertising campaign with no guarantee of any result. AT face value with this purchase you have at best bought a load of work (that's a contradiction in terms!) and at worst a list of decent prospects. Yes, I'd have a look at it and I'd also do some Googling to see what you can find out about it.
Be interested to see how this pans out.!
Dave
www.the-gardenmakers.co.uk
Following on from that i've just had a look at the website and see that 'all jobs start from £10'. You might find the client list evaporating once you come in with a realistic pricing structure.
yer im a bit sceptical about the company the price is cheap , but it does show, simple things like the wording in there website, not professionaly made but, the contract they mention does sound interesting, for me it would be a major move as im based in north west wales and it sounds like the owner would have to work on the jobs aswell ? mayby worth a look for someone closer that way, for the price it does sound like worth a look atleast ?
Just to be picky, he is selling you a domain that he doesn't own. Either that you he can't spell his own company name
WWW.Leafmaintenace.co.uk
It should be... http://www.leafmaintenance.co.uk
The facebook page has 5 likes. I really don't see what your £3500 is buying.
To give my twopence worth - If I had 3.5k to invest in expansion - Id spend £1k getting a 1/4 page advert in the best colour (with article content) magazine in the area, 200 on 10,000 good quality leaflets, 400 on getting them delivered (or do it myself at £0 cash cost, but a 10 mandays time) and £1900 on a new top quality lawnmower - or put it towards my end of year pay....
I would not then be hobbled by whatever charging constrains this business may have, its existing "offer" and would have the potential to gain much more trade, or at least as much but on my terms, not inheriting those of another gardener.
This business was only established in 2011, yet the seller mentions a 'strong brand'. A one year old garden maintenance business would not have developed a 'brand' yet.
All you are really buying here is a couple of second hand tools and the goodwill of a few customers. If i was planning on starting my own businees, or expanding my current one then i can think of better ways to spend £3.5k.
There is an equation sometimes used to value service based companies, can't remember all the variables, but it is basically:
no of customers on contract * billing amount * contract length
ie the longer the customer is contractually tied the more value the business has, but
- domestic contracts are often not worth the paper written on.
- if contracts with a sole trader then they are not typically transferable without customer agreement (different if a ltd company as contract will be with them, and you are buying the "company" & assets).
Simply put, you could buy and find all customer desert you after 1 billing cycle if they don't like you, your methods or any changes you make (days, cost, machines, method).
If one did proceed the sale and price should be subject to a sliding scale with full amount only payable after 3 months - 6 months etc.
If you do not know what you are doing, you should consult an expert or at least your accountant to review figures (...and when he stops laughing you'll probably have an idea it is not a good idea ;-)
Well im glad i didnt bite that little hook i could of gotten very burnt =]
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