Have you considered selling your tile installation business?
Recently we’ve had some great discussion inside my FB group on this subject so I wanted to elaborate on it and share it with you in case you have not seen it or had the chance to listen to the podcast episode.
We also discussed a couple books and articles on this subject, links provided at the bottom.
Today’s Tip of the day is brought to you by Ron Nash, he has a great FB group called Laticrete Inside Track
“Have you trained your employees on what to say when someone tells them they are interested in getting their tile work done? I’ll bet you would be surprised how many times people on your team are asked.“
This is a great tip! Thank you Ron!
Selling your tile installation business, can it be done?
Recently I put mine up for sale and this sparked an in depth conversation inside my FB group, here are some of the comments we had as well as some of my input.
Erik, posed this question,
“When someone is purchasing a business what are they paying for? With a store front business you are generally paying for a lease, a business name/reputation, regular clientele, assets, and oftentimes a functioning staff. So what would you be paying for when purchasing a tile business? Business name, logo, reputation, assets, business plan, contacts, website.”
Erik makes some great points here and I agree with him. Friends, continue to strengthen your business by creating and nurturing business relationships as well as putting work and money into your brand. Your community should be able to recognize you from glancing at your logo. Everything we do from day one effects how our business is seen in the communities we serve.
“I’d pay good money for working structure and systems..
I think that’s a huge value aside from the tangibles like client base and physical assets.
We recently went through a change of hands. In the end, any business’s real worth is what someone is willing to pay for it. A business’s valuation, however, could be derived from a ton of different viewpoints, hard data, and speculations.
I recently witnessed the liquidation of a twenty year plus tile contractor who had an extremely firm foundation in our state, and I was floored to see them shut the doors. It’s made me consider everything I do today, what tomorrow looks like, and what steps I need to take to make changes for the two to be in harmony to build value in my company.
What we do, whether in the office or in the field, needs to be replicable if the business is to have real value. There needs to be a system in place to create people to do what needs to be done to be profitable. When that can be documented, transferred into another person’s brain, and they can perform it the same way you’ve done it to profit…then that has value.”
Great input here also Bradford! Your story about this contractor just shutting his doors makes me wonder if he even contemplated selling his business, this is why this is such an important conversation to be having. If he had sold his business it would have potentially
1. Provided him with extra retirement money.
2. Provided the purchaser of the business a great start to a successful business.
3. Continued employment for existing employees.
What a shame if he didn’t even think about selling due to it not being common in our trade.
Your comments on installing systems remind me of a great book every business owner should read called The E Myth Revisited, link provided at bottom.
Steve Rausch commented,
When I sold my business, with 2 retail locations, the buyer didn’t want either location nor the majority of my inventory . He decided to pay me my asking price without those things because he wanted my customers, company reputation and operations systems. He had a successful operation for about 2-3 years when he decided he knew more and made significant changes and closed within 1 year. Point being, there is value in “non-tangible” items.
Very interesting indeed Steve! This empathizes what Bradford was talking about, Systems and Processes are the backbone of every business and worth the time and effort they take to put into place! If anyone is interested to learn more about Steve’s prior business I know he’d be happy to talk to you about it! He’s active on FB and LinkedIn and has provided his phone number if you prefer a phone conversation. (404) 281-2218
Friends, let’s continue to create and operate strong profitable tile installation businesses, this is good for the tile industry as well as the communities we serve!
I want to thank Bosco Tools for being a supporter and a Sponsor of Tile Money!
Bosco Tools makes a great dustless shroud attachment for your SDS Max hammer tool, as well as a stand up attachment to save your back when chipping up tile floors!
Make sure to use the discount code “tile money” at checkout for 10% off