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  • In your opinion

    When would the customer portion of a mobile grooming business have a value of $60,000 to $70,000 value?

    How kind of client base would you need to have to want to pay this much?

    How many of those would be regular clients?

    What would you want to see the yearly profit of that business to be for a 5 year period?

    I have to go over my infor from the wag-n-tails seminar to see if this was covered I can't remember.

  • #2
    Originally posted by Dog Daze View Post
    When would the customer portion of a mobile grooming business have a value of $60,000 to $70,000 value?

    How kind of client base would you need to have to want to pay this much?

    How many of those would be regular clients?

    What would you want to see the yearly profit of that business to be for a 5 year period?

    I have to go over my infor from the wag-n-tails seminar to see if this was covered I can't remember.
    All of your questions can be answered with the same statement...It's up to you.

    I start my business plans by backing out of a budget. Write down how much you want to make yearly..of course be reasonable, but close to 6 figures is not really that difficult to achieve, you just need time. From that you can figure out your base price and that number will give you how many dogs a day you need to groom. Just keep backing out the numbers by including monthly expenses and you will see exactly what you need. If you intend to grow, put that in the plan at whatever time you guess you will be expanding..then back out those numbers. It's always hard to make a budget when you don't have any numbers, so you literally have to "pluck" them out of the air..just be realistic or as realistic as you can be... Remember too, forecasting your business is as important as knowing how to groom. Most businesses fail (not just grooming, all businesses), or don't become as successful as they could be, because the owner doesn't know how to forecast the future. Start up is easy, making it grow is not so easy. I would recommend you read alot of business books on this subject. It makes you in charge of your business, not just wishing for success but making it happen.

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    • #3
      Originally posted by A1Mobile View Post
      I would recommend you read alot of business books on this subject. It makes you in charge of your business, not just wishing for success but making it happen.
      A1,
      Do you have any favorites?

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      • #4
        Sorry let me elaborate I mean if someone with an existing business is selling their "business/client list" for 60,000 - 70,000 what client base would you expect that business to have? What percentage of that client base would have to be "regular every 4-8 week clients?

        It seems kind of high for the client/business portion of a mobile business as there is no telling how many of those customers will stay once the original owner groomer leaves.

        I have all the numbers crunched for starting from scratch but wondering of anyone knows any guidelines for buying and existing client base.

        Other than seeing the business' tax returns/financials for 4-5 years.

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        • #5
          The best book I've encountered is Ellen Ehlrich's Go Mobile and Succeed.

          As far as valuing the client portion of a business, that's hard. You could pay for the client list, but it's a free country, those people aren't committed to using you as their groomer. And it's a very location-specific business. I have built my business up in a 6-mile radius of my house. If someone purchases it they need to live fairly close to benefit from that. I know someone who bought a list an was not able to retain all of the clients.

          It also helps to know why the business is being sold. If it's due to retirement, things may work well -- the retiring groomer can help you with the transition, introducing you to each client and then after a visit from the two of you together, you would go and book the next appointment. With a smooth transition like that you are more likely to retain the clients you "buy" and then the value is a good one. There is a formula for figuring out the price of a business ... I don't know exactly -- it's the gross of a certain number of years. Say the business grosses $60,000 a yr, then the sales price is X number of years times the average yearly gross for the time period. I don't know the time period.

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          • #6
            I have Ellen's book and it's the best.

            She has been amazingly helpful

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            • #7
              in a word........NEVA ! Unless you had 60,000 clients

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              • #8
                Originally posted by Dog Daze View Post
                Sorry let me elaborate I mean if someone with an existing business is selling their "business/client list" for 60,000 - 70,000 what client base would you expect that business to have? What percentage of that client base would have to be "regular every 4-8 week clients?

                ...

                Other than seeing the business' tax returns/financials for 4-5 years.
                What are their prices? Ask to see thier appointment/scheduling book from ALL their years in business that shows exactly how they have planned their day. They should have kept every one. If they didn't keep these records, I would walk away. They should also have a program that not only shows who their customers are but how often they get their dog groomed. Any Quickbooks program does this and can make any report you may need.

                Alot of groomers wouldn't buy an exisiting business, but I would. I would also have to have the van or trailer included. I would not just buy a client list. Do your homework. Ask them what accounting program they use ie: Quickbooks, Pet123 and ask for different reports you need. Will they assist in a transition? Will they start advertising for you now? What else comes with the sale...cell phone, website, phone book ads?

                If the company that is trying to sell doesn't have any of these records or reports available, then I would keep searching. You can't sell a business if you don't make it sellable and that step takes place during the years it's open. Financial statements can be manipulated and I wouldn't take anyones "word" for anything... I don't care how much money they make. Sloppy record keeping means sloppy everything. You can't randomly decide to turn a high priced hobby into something sellable without the paperwork to prove it. Also, make sure you do a record check of all taxes so you arene't stuck with that bill down the road.

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                • #9
                  Oh..one more idea. Find out what kind of clientel they service. Do they do large breeds? Are most of their cleints 7f kennel clips or are they scissored stlyes, any aggressive dogs...etc? Make sure you have the skill to keep these clients. How would you like to buy Winteroo's client list and not be a great Standard Poodle groomer..you'd be out of business in a month!

                  I would ask about hours of operation. When are most of their clients scheduled? Mornings, nites, weekends? Make sure it fits your schedule so you won't lose any client because of scheduling conflicts.

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                  • #10
                    Okay what I found out so far. Business brings in $36,000 thats before paying yourself and taxes working 4 days and 15 hours a week that's what they choose to work. I'm no accountant but in my mind that doesn't justify paying for the client list. Some customers will bail just because there is a new owner.

                    They are willing to sell just van if someone else buys whole customer list. I think I'd rather have customers that are new to me and mobile grooming as to be used to my style and way of doing things and not hold me up to someone elses standards.

                    I am going to call and do a ride along and I think she is willing to help with the transition if you bought van & clients as a business as she is moving out of state. Last time I came in after a groomer left the kennel and opened her own mobile a lot of people left and found her right away even though she didn't do much advertising or wasn't able to let them know she was leaving and starting her on business.

                    They weren't even wiling to try anyone new

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                    • #11
                      Originally posted by Dog Daze View Post
                      Okay what I found out so far. Business brings in $36,000 thats before paying yourself and taxes working 4 days and 15 hours a week that's what they choose to w,,,

                      They weren't even wiling to try anyone new

                      That makes not sense ! Sounds like it nets 10k a year ! I would pay $5 a client....period....what is 80% of the clients are 10 + years old !

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                      • #12
                        A fool and his money are soon parted. It seems like the person is looking for a fool. Don't be the person she is looking for. Run, Forrest! Run!
                        "With God's help, all things are possible!"
                        Laura Lee Ray
                        I am kats_melody on eGroomer. Follow my Twitter tweets - @ZOOMGROOM on Twitter.com

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                        • #13
                          Oh I wouldn't buy the client list anywho. I was just trying to figure out where they came up with thier amount it seemed outrageous and I'm like how can you justify that and I can't.

                          I am just interested in the vehicle.

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                          • #14
                            One really basic rule of used to find what your business is worth when selling is to double the yearly gross. Sounds like this may be where she picked her number. Good luck to her in trying to sell JUST her clients for much more than a few hundred bucks. All you would be paying for is possible leads..and that is worth something..but certainly not much..especially when her total groos is under 40K.

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                            • #15
                              That is very high, I recently sold my salon and went straight mobile. Our salon averaged just over $3000 per week with about $1500 per month in expenses. I did not sell my client base for that much.

                              Also, consider how many of those names are active clients. I only consider clients ACTIVE if they get groomed every 6 weeks or less.

                              If they are more than that then they are sales leads and average anywhere from $.25 - $1.00 per name.

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