Please offer advice for business sale/ start tree career

[UtahTreeGuy]

Hello everyone, please accept this short appraisal of my situation and offer me any advice that you can. I have owned my own tree service since 1997. My business is succesfull enough. I currently have about 40 k in assets this includes a 96 int LoPro, an old but good ProMark Chipper, spray/equipment trailer, 6 k in injection equipment, and then chainsaws trimmers saddles and all that crap, 07 Grizzly for plowing. I also have a 06 Dodge Megacab half paid off but that is not in the asset total. I have dedicated my service over the years to high quality, knowledgable work in all aspects of arboriculture and have a great reputation. I do most of my work alone and that has its pros/cons. My company Grosses about 114k a year with zero advertising expenditures. I always have work except in the winter I do snow removal.
I am considering applying for a commercial sales representative job with a company in my area and I know there will be Pros/Cons there too. Should I make my employment contingent upon them purchasing my business? What should I expect to get for my small tree business? How much should I get paid? Base? + salary? I am also a certified Arborist. If I work for them I do not want to make a habit of "doing the work" I hope to be a full time sales/consultant. I do not want to do side jobs. I intend to sell to all of my existing customers on there behalf. I would not make the move without a contract? Please help me not to give up the farm here. Thank you!

 

[lxt]

WOW....... first off, why if biz is so good do you want to take this chance? I very seriously doubt they will purchase your equipment or provide you a contract that will cover what you would want/need.

If they know you have a biz....beware!!! I have heard of some larger companies offering small biz`s(owners/managers) that are strong competitors positions that seem un-passable!! these are called teaser offerings around here....once they bait you in & you bite.....a year later you are beside yourself!!!! hold on to the biz, let some one run it for you!!! after 1 year if all seems ok then make a decision!!



LXT...............

 

[UtahTreeGuy]

Thanks for your reply.

I would like a change such as this because I really believe I would be so much better if I was on a team. At this point I have to do everything and that can get tiresome. I have had different arrangments over the years that have shown me how much better I can perform when I am not responsible for every aspect of the business. If someone else cleans up the jobs for example then I become a focused, energetic, tireless climber. Or if I have a crew then I kick but at sales and customer service. When I do all of it then I get spread a little thin. I am sort of content doing it all on my own it's just that the business is always outpacing me and making me work too hard. It would be a dream job for me to just provide sales and service and let other people take care of the rest for the most part, as long as they are good at what they do! I have very high standards and care about things getting done correctly that is why I am succesfull at being self employed but a little handicapped when it comes to running a business. Anyone else have a take on this?

 

[fireemt799]

so many questions to consider

There are alot of factors and questions to consider in my opinion from what you have posted. You have had this company for 13 years so you probably know alot more about running a business then your giving yourself credit for. First thing i would do is write up a fresh business plan and take a good hard look at it. Some questions this will answer is how are you doing year over year? are you growing stable or declining? You say you have no advertising cost so your customers or either repeat or word of mouth which is incredibly valuable. How much of a wait time does a customer have with you? are you turning away jobs or do you have extra time? How efficient are you in doing those jobs and are there ways you can increase that say hiring someone? You are grossing 114k but what are you netting? whats the true bottom line of your business and your equipment? How much useful life is left in your equipment? How competitive are you versus your competition? Is there room for you to grow your company and put yourself in a more hands off position where the business works for you instead of you working for it? I would strongly suggest having an accountant look at all your financial info and your business plan and get their advice also. As far as the job your equipment will be of little or no use to them so just take that out of the equation. The true value of your company is the experience and the customer base. If i was to interview or hire you as that company some questions i would have is how many of those customers are with you because you are a small company that offers great service and how many of them are going to follow you to the new company and how many are going to stay long term? This company may buy you out then 3 months to a year later you aint as valuable to them and your out and starting all over again. You have 13 years invested in this and the value of this to you is going to be alot different than it is to them. I would do the biz plan take a good hard look at all your options see if you can hire someone or a crew and grow your business and make it pay you with less work or whether its time to throw in the towel and get a regular job. There is alot there to think about and i have only gone over some of it but the absolute bottom line is what you want to do and what makes you happy is what is going to make up a big chunk of the decision for you. My advice is take a good hard look at everything and make an informed decision so you wont be wondering what if in a year or so.

 

[BlueRidgeMark]

I am considering applying for a commercial sales representative job with a company in my area and I know there will be Pros/Cons there too. Should I make my employment contingent upon them purchasing my business?

I have never heard of a company doing that for anything less than a high-level executive position. Not for a sales position! But you can always ask. The worst that can happen is that they think you're crazy and tell you to take a hike, and you're right back where you are now. (Which doesn't sound all that bad!)

What should I expect to get for my small tree business?

There are business brokers who can tell you that. It's what they do for a living. Asking other small business owners this question is about like asking other small business owners for legal advice. Bad idea. Sometimes, DIY is a good idea. Other times, you need a pro. This question is one for a pro. Ask several different brokers, too. They're like Real Estate agents - they have to know the market to survive, and yes, they take a commission. It's the only smart way to sell a business. Even if you sell it to the company that's hiring you, spend $500 to get a professional estimate of the value, or you are sowing the seeds of bad feelings with your new company. One party is going to think they got ripped off, and that's no way to start a working relationship. If you have a professional estimate (or two or three!), then all parties know the sales price was fair.

How much should I get paid? Base? + salary?

You haven't discussed this yet? They've given no hint? That is NOT a good sign! Something's wrong here! RED FLAG TIME!


How much do you need to match your current income? How tolerant of risk are you? For myself, I've tried straight commission, and I don't ever want to do that again. Some people thrive on it. It's a personal choice.

I am also a certified Arborist. If I work for them I do not want to make a habit of "doing the work" I hope to be a full time sales/consultant. I do not want to do side jobs. I intend to sell to all of my existing customers on there behalf. I would not make the move without a contract? Please help me not to give up the farm here. Thank you!

Sounds to me like you're tired of tree work. If so, this could be a good move for you. However, you really need to sell the business on your own, I think. Keep in mind, selling a business usually carries with it a non-compete clause. You will not be able to sell to your existing customers. The only way you'll be able to do that is by selling to your new bosses.'

Of course, it's already been suggested, this might just be a way to eliminate a competitor.

Go slow. It will be very hard to go back once you've done this deal.

 

[mckeetree]

the worst that can happen is that they think you're crazy and tell you to take a hike

lmao

 

[UtahTreeGuy]

A year later!

Funny, cause I am right back here full circle. I didn't sell out yet because I am like a Rat in a maze. Thank God, I keep finding my cheese. I was talking to an owner of a large tree care in town today and he is considering hiring me as a salesman. I have a ton of work lined up right now but still going it alone. It's hard to leave something that you have so much time in. I still feel the same way though and even though I am very thankful for all of the work I am ready to quit! My body doesn't like this work anymore.