Business side question, for the owners and for any Juniors thinking long-term.
My father ran this shop for three decades and handed it to me. None of my kids want it. My nephew in Hamilton is in IT. So in ten years or so, who buys a 2-truck residential shop on the Hudson/Bergen line? The trucks and tools aren't worth much. The customer list and the phone number are the whole business.
My father used to say a shop is just the people who still call you back. I half regret not thinking about this sooner. Anyone been through selling, or buying in?
Master Plumber, second-generation shop owner · 23 years · Hudson County, NJ
Mentor
The someone-already-working-for-you part is what I keep coming back to. I hired a vo-tech kid last year who might be that guy, if he doesn't go union first. My father would laugh at me for worrying about any of this.
HVAC contractor, owner · 25 years · Middlesex County, NJ
Mentor
We've started thinking about this too. What I've learned so far:
- The license is personal; a buyer needs their own, or a licensed person running the work
- Your books need to be clean for years before anyone pays real money for goodwill
- The most likely buyer is someone already working for you
That last one means you start grooming someone now. Ten years goes fast.
New to electrical (career switch) · Essex County, NJ
Not an owner, I haven't even started yet, but I spent 11 years in insurance claims and saw a lot of small businesses get valued. Clean records and repeat customers were always what moved the number. Kash is right about the books.