Many folks have been laid-off, or they are looking for new businesses to get into, businesses that will survive in this rather harsh economy. Who can blame them right? Things have not been exactly very fine in a good many industries since the real estate bubble burst, and global economic crisis. Worse, banks are not lending money to new small businesses, money flow has stopped. Therefore it's very difficult for someone to get started in a new type of business.
However there are some businesses which don't cost that much to get into, such as the mobile car wash business. Not long ago someone asked me, if he should start a mobile car wash business, or buy a mobile car wash business with existing accounts, accounts which consisted of auto dealerships, where he would be doing the lot washing for all the brand-new cars. Then he indicated to me that;
I am extremely concerned over several issues and wonder if you would be so kind to provide me some insight. Here [is] my question; Do you believe it is necessary to jump start this business by buying existing accounts?"
No, not necessarily, you could just as easily put forth a small sales team and go pick up some accounts, of course that takes time, and of course, you need to weigh that against the price of the business for sale, or how much you can, through negotiation, purchase it for. Also realize some of the accounts the mobile car wash business have may not be producing a profit at all.
It's easy to bid a small car lot, then find out that the lot manager is down-right hostile in demanding time of wash, methods of washing, calling the crews back for re-washes, etc., the worst being the dictating of methods used, which can slow down the wash process. Before the recession most businesses of this type could sell for 10-months gross income, today, doubtful. And if you are going to commit to 10-months gross, you'd be paying a hefty sum. You could just as easy bid 25% less with the first month or two free and TAKE the accounts.
Look, I am the most aggressive son-of-a-gun on the planet when it comes to winning, and I would rarely ever buy a business, and I never liked the concept of market-share, I don't share well, heck I should have been an only child I suppose, nevertheless I'd say, if you are in it to win it, then trust self and your abilities and go get you some. Why buy a "rag-tag-fugitive-fleet" in this case, the company doesn't sound like much, a few small pick-up trucks with day labor quality folks riding around from job site to job site in the trucks?
But, that's my advice to anyone who is considering purchasing an ongoing, and existing small business such as a mobile car wash, rather than starting one from scratch. Indeed, I hope you will please consider this.
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