If you are looking to start a carpet cleaning business then you may want to consider buying an existing company. Buying a carpet cleaning business for sale can give you a huge advantage over a startup. Most businesses that are for sale are either on the market because the owner is retiring, it is not making money, or because of a relocation. No matter what reason for the sale it is important to focus on three things. The equipment, the advertising, and the customer database will help you determine whether or not the business for sale is a good buy or not.
Main factors that can determine whether or not to buy a carpet cleaning business for sale.
1. Research on equipment
Good equipment for a carpet cleaner is a must. If you have never owned a carpet cleaning business then you must do some research on equipment to determine whether or not the seller’s equipment will meet your needs. Some businesses will buy inferior equipment to save money. This usually costs the business repeat customers because of inferior cleanings.
2. Maintenance records
This is where an education in equipment will come in handy. If the equipment is top-of-the-line and the owner has maintenance records then you can proceed with the buying process. Also, any reputable seller will allow you to take the equipment to an independent professional to have it checked out.
3. Marketing records
Next, you should determine what type of advertising is already in place. Most established businesses will already have yellow page advertisements and a variety of other media ads in place. In addition, an existing business should have detailed records of what marketing has worked in the past and what has not. This can be invaluable knowledge to a new business owner and will save you untold amounts of money and time that would have been spent testing marketing campaigns.
Those are the three main factors that can determine whether or not to buy a carpet cleaning business for sale. It can often be easier to purchase a business with a track record instead of starting a carpet cleaning business from scratch. Just remember to have the equipment checked out by a professional, examine the marketing records, and thoroughly examine the customer database to determine if the business is viable.
Revenue produced by the business is also of great concern; however, revenues generated can swing wildly because of who is performing the work. A technician that is good at up selling items such as protectant and disinfectant could easily double the revenue produced by a technician that is happy to just put in eight hours and go home. This is why revenue produced by the business should be considered separately from the previous three items.
Finally, one of the most important assets that an existing business for sale can have is a good customer database. These are individuals that are proven buyers of the service that you will be offering. One of the main things to examine with a customer database is how up to date the list is. Many businesses neglect their lists and do not remove double entries, deaths, and movers. If the list is quite large then it can be submitted to a mailing house, for a fee, and they will purge the list for you.
In addition, if the list is segmented it can make it more valuable. A list that is broken down by how often the customer purchases can greatly reduce your marketing costs. A customer that has not purchased carpet cleaning in the last six years is not as valuable as a customer that is serviced every six months.
There are a few great places online to look for carpet cleaning businesses for sale.
The first would be a local real estate website. A site like Remax.com will help you locate a local agency. From there you can search for businesses for sale in an area. These sites pull all the MLS listings, so you can see all the listings and not just the ones from that agency.
Another, great place to check is Craigslist.org. More and more business owners are using resources like Craigslist to sell their business themselves and save the commission to a broker. Finally, if you don’t see anything for sale in your area you may want to consider calling up owners and asking them if they would consider selling. It may plant the seed in their minds and also lets them know if they do not sell there may be more competition entering the market if you start up from scratch.