Startups Anonymous Est. 2013 · Read-only archive
Questions

10 years in…what next

So I own a small niche business… we are in the restoration side dealing mainly with office building property managers. We have quarterly maint contracts and get paid well. Our gross this year will be around 300k and has been for about 3 years now. We (wife and I are the owners) take about 150k for ourselves, so the profit is good. I’m just burnt out and feel like i really want to sell the business but it’s such a niche that I don’t think we can move it. So far we’ve gone through a dozen field techs and can’t keep one for longer than about 18 months. To sell the business we need a larger work force. I dread doing the physical work anymore, but i’m very good at it and make some times over 200/hr.

My problem is that I want to keep the business, which I don’t think will run without me doing the majority of the labor,  but I don’t want to do the physical labor ever again. Our cash flow always sucks and it’s put a strain on my marriage bc cash flow sucks which means i never have just a load of cash laying around bc we are always collecting. I could just keep on keeping on bc we do make good money but if i lose one person im back to the grind of the labor and i will literally shoot myself b4 i grind out the labor again. im basically unskilled with no college ed and that would limit my ops to trash man or painter.

Should i try to 1-sell the business, 2-close the doors and wait on the 30-40k past due accts rec to float me until i get my painting business off the ground or sell cars, or 3-should i just suck it up and realize that im destined to a life of hating the labor of job and keep feeling like a slave master by having my labor/techs do all the field work?

10 answers from the community

AAnonymous· Dec 2, 2014

you may try Clarkhoward.com

This is mainly tech start ups ?

AAnonymous· Dec 3, 2014

Right, because here, we don't like people who do <em>gulp</em> actual work, let alone anything not related to staring into a stupid screen, motionless.

AAnonymous· Dec 3, 2014

Follow your passion. If you have to work side jobs to enable you to pursue your passion, so what? There is dignity in work. I was a custodian for a full year. Even then I learned from it and provided a quality service.

AAnonymous· Dec 3, 2014

I have a similar sized business, although my take home is less than yours. After being in business for 12 years, I want to sell, so I hired someone to help me (commission based). Mine is a tech business.

You may want to try opening a business line of credit at a bank to tide you over during cash crunches. The rates are competitive, and you can write off the interest. The other option is factoring, (advancing the payment for current contracts) but they usually charge a good amount of interest.

Good luck with whatever you do.

AAnonymous· Dec 3, 2014

You have a business that is actually making money. For the love of god keep doing what you're doing.

Your. Business. Makes. Money.

The majority of folks on here have crashed and burned, badly. With no cash and no business to even run anymore.

Do whatever you've got to do, trust me. Anyone I talk to that tells me their business is doing well and they have plenty of business - making money I don't care what they do, they are lucky and are onto a good thing.

Starting another business is going to take huge amounts of energy and money. You've done the hard bit already.

Good luck.

AAnonymous· Dec 4, 2014

He's not happy.

AAnonymous· Dec 3, 2014

It seems to me - as an outsider - that you're either underpaying the field techs or are underestimating the value your business is bringing to your clients. Maybe both.

If the business cannot survive without your personal labor - to me it points toward the latter.

What I'd suggest is to really look hard at your business model and customer base to understand whether you can increase your prices charged - and in so doing, bring in enough employee labor such that you can switch to manager mode as opposed to labor delivery mode. To be explicitly clear: enough employee(s) to replace you vs. an employee that does all that you expect you yourself would do.

You also seem to be saying that you don't believe there is the capability to expand. That may be true in your local market (is it local?), but do similar opportunities exist in other markets further away? If the cut from a single market isn't enough to sustain yourself and your wife as non-delivery contributors, the only option is to try and grow it over a larger base such that the pie from which the cut is being made, becomes larger.

AAnonymous· Dec 9, 2014

You gross 300, and take 150 for yourself? For real?

AAnonymous· Dec 23, 2015

For cash flow, push your vendors for Net 60 and Net 90, call on your debtors and ask for payment, and then go get a loan from the bank to smooth your cash gap. Take a portion of your profit to use as operating capital, Once you have enough operating cash, return the principal of the bank loan and finance your own operations.

Surely someone must be interested in doing the manual labor that you don't want to do. you need to find someone to run your business for you. You would want them to start by doing the heavy lifting, but pay them like an executive from the beginning. Use some of your profit for two years to pay for a skilled individual who can run the business for you. Build them as a leader, create a relationship of trust and autonomy, allow them a vesting schedule for equity share. Get them running the business 80% of the time, and there you go, problem solved. Each year, they take 50K profit and you take 100K for yourself and play some golf, while arm-chairing the business.

Then save up and target another segment.

AAnonymous· Dec 23, 2014

If you hate it sell it. First sign your customers into a contract then start shopping the biz. Talk to others in your area about selling. Tell everyone. Have a quick one page showing the business financials. If it's making 150k and you work there you can probably get rid of it for the same or a touch more with no growth.