Very Well Established Residential Window Cleaning Business
Stock Included: —
Stock Value: —
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Our residential window cleaning business has been in operation for 10 years, for the last four years as a husband and wife team. We have a good turnover, a large customer base and an excellent reputation. Here are some key points about our business and what you would receive -
- Hundreds of repeat customers, which amounts to a good slice of market share, the size of which would normally take years to build, and which keeps two people very busy. Most of our work involves servicing these customers, and most of them are serviced 6 monthly, annually, or biennially. We are busy throughout the year, including during winter, and at the end of the year -the peak time -we transition from being booked up weeks ahead to being booked up months ahead. Too much work is the norm, and while we have normally chosen to refer on excess work to other window cleaners, a new owner would have the option of expanding the business to capitalise on all the work available. The new owner will be given detailed files on all our customers, and we will communicate with the customers about the new owners. Since many customers book their next clean as soon as one is completed, we already have bookings until November 2020. These bookings will be inherited by the new owner. Being booked up will not be a problem.
- We have a very popular website that has evolved over the years. Customers who contact us frequently praise it. On top of existing customers, we receive a fresh injection of new customers from this website, and also from referrals and contacts such as real estate agents. It is all the marketing we need. However, we have lots of proven marketing material that we have used in the past, and which could be used in any expansion efforts.
- On top of window cleaning we provide extra services such as gutter cleaning and solar panel cleaning. Canberra is growing, and the percentage of homes with solar panels is also increasing, which means that this extra service has a lot of potential for the generation of new business -both with old and new customers.
- You will receive all our window cleaning equipment, including a water-fed pole and four ladders.
- You will also be thoroughly trained in all areas of window cleaning and the running of the business, and be given lots of training materials. You will also receive ongoing support to guarantee that you succeed.
We agree - you don't need to purchase our business. You can start this type of business on your own, and save yourself $44,500. You will feel good about saving all that money. However, it's not as simple as that. A person who tries to start this type of business on their own (self-starter) will have a completely different experience from a person who buys our business (buyer). Let me explain.
The self-starter will save a lot of money at the start, but they will still incur start up costs. Those costs may be smaller, but they'll still be there, and more costs will follow. The buyer will have all the customers they need. The self-starter, even if they are one person instead of two, will have a big job ahead of them in getting enough customers. For a start, they won't have any repeat customers. They will have to invest in marketing. This will automatically make their running costs higher. The sum total of the marketing costs of the buyer is a web hosting fee.
The buyer will have a learning curve to navigate, but they will be trained and supported, and will have a high revenue from the beginning. Ideally, there will be two of them, and they will be busy right from the start. Since they'll be busy they'll get lots of practice, which means they will be refining their skills and mastering the work. But more importantly - since they will be busy, they will be making money -good money -right from the start. The new owner will be piggy backing on our prices, even though they will have less experience. These are good prices that have been established and increased over time. The thing about repeat customers is (1) you don't need to do a quote, (2) the job is easier because it's normally less dirty than that of a new customer, and (3) sometimes you can raise your prices. One or more these factors means that we frequently notice a sizeable uptick in the hourly rate we make at a repeat customer's house.
All this will be miles apart from the experience of the self-starter. Assuming their marketing is successful, because more effective word of mouth won't kick in for a long time, they will have to spend a lot of time doing quotes, rather than getting calls from repeat customers who book in a clean without needing a quote. New customers will also mean a higher percentage of "first time in a long time"cleans, which effectively means dirtier and more difficult jobs. They will probably find themselves in situations where they have to compromise on quotes just to get any work they can get, especially given the money they have invested in marketing. Putting this together, they may find themselves getting squeezed on difficult jobs whilst feeling guilty about all the money they have blown on marketing. Costs will be higher, revenue will be smaller, and they will be less efficient. There will be no one to guide them and a lot of trial and error. Itll be at least six months before they get their first repeat customer.
An analogy of the contrast between the self-starter and buyer would be the difference between a slow runner and fast runner who start a race at different positions. The self-starter will have incurred less debt and be in a better starting position than the buyer who spends $44,500. However, when the running starts, the self-starter will be the slow runner -much smaller revenue, higher costs, and inefficient. To begin with, they will be more of a walker than a runner. The buyer will start off behind, but they will be a faster runner from the very beginning. They will be sprinting from the start -lots of work, high revenue, and lots of support.
A faster runner who starts behind a slower runner will eventually overtake them. How long it will take them to overtake will depend on two main factors -how far behind they start, and the differences in the two speeds. My estimation is that, taking all variables into account, if the buyer puts in the work, as the fast runner they will overtake the slow self-starter sometime between three and four months after starting. They will then forge ahead of the self-starter, who will never catch up. In fact, after 3 or 4 months the self-starter will possibly be frustrated and think of quitting.
If you are interested, and if you would rather have the experience and conditions of the buyer than the self-starter, then why not contact us for more information, including all the financial information. This is a genuine opportunity. If you are physically fit, you can learn the work. You are welcome to come along for a day or more to get a feel for the job and its perks, such as friendly customers ever keen to offer you tea or coffee.