From the article:
But here’s the reality. Most inspection firms doing $150K a year are worth about $5-$10,000 dollars at the outside.
And that is the key point.
Once you don’t answer the phone and show up yourself, the trust is not there.
It doesn’t matter how many inspections you have or have not done, the trust is with you, not your company name.
No one is being condescending, we’re trying to help you realize what’s actually going on.
Just ask any of us who have employee inspectors, the hardest part about going from 1 man shop to a two-man shop is getting the agents and clients to accept the “new guy” employee over the established owner. In fact, I’ve had numerous agents tell me (and follow through) that f I don’t come myself, they’ll call another company rather than take the guy(s) I trained myself who inspects exactly like myself.
It took a long time to gain new trust with agents that my guys under me can do the job just as well as me. And some still are not on board.
I now have 4 guys under me, but I have an almost entirely new agent pool. Many of the agents who were my top agents back when I was 1 man shop rarely call anymore. A few stuck around and eventually learned to like my employees, but even then, someone will only accept certain employees but not others, never mind they all can do the same quality of job, because they only have that trust built with certain guys.
And that’s why buying a 1 man shop doesn’t hold much value. The established agents and clients will not simply keep coming back with a new owner, because you can’t sell the trust. The new owner has to start over on building that trust.
Hence why your business is not worth anywhere near $75K. Not even close.
If I were you, I would hire an employee inspector and keep the business. Then you could ease them, help them built that trust, and eventually, you’ll be better off since you have that 2nd stream of income. Yes, it would take quite a bit of work to pull it off, but in the long run, you’ll get far more income than you will from trying to sell it.
Thank you all for the input, much appreciated. It was/is very difficult to place value on and I certainly understand where the current value lies…largely/entirely on the relationships I’ve developed.
I’ve moved on to phase two…hire an inspector to run the area. Daunting at that distance but even if a “buyer” called today it wouldn’t get done until late spring. I’ll be better off finding someone that may want to work into ownership of the business.
More details, not that it matters, but my wife owns the business in the Boise area and has multiple employee inspectors, vehicles, tools, etc. I was not allowed to be associated with it in anyway during my noncompete period…no marketing, training, etc. I had no choice but to build Snake River Home Inspection to continue inspecting and I developed some amazing relationships… I just want them to be in good hands when I stay “home” and refocus my efforts on the primary business.
Thanks again
Thank you for everything you shared, Jacob.
I concur. Operate by retaining an inspector on a work to posable purchase relationship.
Pay a fair market price.
Prepared an agreement in the eventuality of purchasing the business.
Its a two way street remember. The prospective employee/inspector is building the brand and valve from almost the ground floor up. The business is only approximately 2 years old.
Good luck with all your endeavors.
Regards.
Robert