Founded in 2008. The Landscape Juice Network (LJN) is the largest and fastest growing professional landscaping and horticultural association in the United Kingdom.
LJN's professional business forum is unrivalled and open to anyone within within the UK landscape industry
LJN's Business Objectives Group (BOG) is for any Pro serious about building their business.
For the researching visitor there's a wealth of landscaping ideas, garden design ideas, lawn advice tips and advice about garden maintenance.
Replies
This is definitely NOT my field of expertise, but I'd guess what most buyers might be interested in, could include:
1) What's the realistic market value of your "hard" assets (vehicles, machinery, tools, materials etc).
2) For the "goodwill" part of the business (your trading name / reputation, customer list etc), what are your annual profits, how consistent are these, are your profits trending up / down over recent years, do you have good branding and a solid reputation which could add value?
3) Do you have any decent systems in place, e.g. website / prodecures / database, which could in any way add value? For example if you have a decent scheduling-billing system set up to reduce your admin burden (cough - Groundleader - cough splutter) or an asset maintenance-management system (cough - ToolFleet - cough cough).
4) Are there hungry competitors muscling in around your area, taking your customers and trying to squeeze you out - which could put off some buyers? Or are most of your customers long-term, loyal, and unlikely to jump ship?
5) Will you be able to steer and guide your buyer to some extent during a transition period, to ensure continuity and the smooth running of the firm? If so, on what financial basis would that be delivered? How long and on what terms will they be able to access your expertise, knowlege, advice etc?
6) Do you need payment up-front in one lump sum (e.g. they get out a loan from a bank to buy your business), or is there scope for you to get something drawn up by a commercial lawyer, binding the buyer to pay you in instalments, over a period of (say) 2 or 3 years? Note - you need to be careful to consider what happens if they fail to pay.
Hope you manage to get a sale for your firm, and enjoy your retirement! :)
Best wishes.
Hi Peter... sorry been away for a couple of weeks.
So, this is what I did - and it worked.
Made sure I was charging as much as the local market would bear - so I definately was showing a healthy profit - ran the business for near enough a year. Got the accountant to draw up end of year accounts letting her know I was selling up.
Totted up the value of all the kit/van(s) etc. Not new value, just a fair 2nd hand price. + a notional price for the clients (mine was mostly residential so far more fickle as to how and who does things than your client list probably is.
I wrote up a crib sheet on each client - about them and the things they look for and what I did there each visit
I then posted here, and a paid post on LinkedIn (that cost a lot :( ). and waited. I also contacted a few local competitors to see if any were up for more .... that didnt work.
About a week later Alex appeared, someone had seen the ad and passed it to him, and he didnt know where he had seen it. It took 4 months from there, and I got about 20% less than i was asking for - but he was the only game in town.
By all means message me if you want more details Peter
Adam, thanks - how did you arrive at a" notional " value for each client? Did you value each client on say client a pays me 5k a year and multiply it up for the rest? So for example you had 10 clients all paying 5k a year so that equals 50k income , not profit, from the business so in theory once you take out costs the "goodwill" is the 50k less costs of say 20k equals 30k? That plus kit value you arrive at an asking price?
The value per client was around how long theyd been with me, the nett profit they generate each year.... and a mad guess at how they will take it if Adam us no longer coming each week... i.e the little old lady who I indulge in a chat each week... versus the industrial park where I see no one.
Yep youre about right on how I calculated things, but at the end of the day you have to take what you can get.... and the alternative is to end up having to sell each bit of kit on Ebay (a nightmare). Remember you can always come down , but you cant put the price up.
... and what Ground leader said in point 5 was on offer - as in for a month they were welcome/encouraged to come on every job... as a sort of handover.
also on their point.... getting lawyers to draw up contracts of payment in stages seemed a bit of a nightmare - I didnt want lawyers taking a large slice.... my view is that if a bank wont give a loan to who ever (if indeed they need it) I probably shouldnt be talking to them.
...oh I was also completely open with all my clients that I was doing this... and that my intention was not to leave them without a service.... obviously that generated lots of questions, but no loss of business
I have seen loads of comments on this, I live in the north east of england not an affluent spot, but have built up over 10 years, a base of probably 150 to 200 customers a fortnight. From tiny five pounders to two pubs which take ove 3 hours each.
My plan is to employ someone and keep the company running, If i can charge x amount per hour and pay someone half i, it all looks good
.I realise its got to be someone you trust who wont undercut you and I would say any new work gained is yours.
let me know your thought please.