Lately I’ve been looking at workshops for sale. I have to say, it’s very disappointing to see so many workshop owners selling their businesses just for the cost of their equipment (and in some cases, less).
After many years of self employment, and a lifetime spent in the trade, these workshop owners have their businesses up for sale for amounts as small as $20 000. This includes hoists, scan tools, and stock.
Would you be happy with that at the end of your working career? I wouldn’t. You all bust your butts day in and day out, and deserve to sell, when the time comes, for amounts that reflect your expertise and the business that you have built up.
Bearing in mind that as business owners some of these guys won’t have been adequately providing superannuation for themselves either, $20 000 is hardly an amount to retire on.
Three particular workshops all had listed that they were selling due to the ill health of the owner, which made me wonder just how many of you have your workshop in the kind of shape needed if an unexpected event arises, requiring the sale of your business….
Do you have your tax returns up to date?
Do you have visible and documented systems in place that potential buyers could use when they take over your business?
Do you have a customer retention program that shows you have an automated system for bringing your customers back in?
Do you have an equipment register that lists every single thing inside your business that is not part of the real estate?
If you rent your premises, do you have a lease in place? Did you know that without one, you technically don’t have a business to sell? A favorable long term lease will make your business more valuable, and allow it to be sold as as “Going Concern”.
Do you know your “Adjusted Profit”, which is the real value of benefits you derive from the business, not just what your tax return says your profitability is. This is essentially the basis upon which you want your business to be purchased.
Having these essential items in place can be the difference between selling your business for multiples of your profit, or just being able to get the return on equipment value (if you are lucky).
You might be at the beginning of your time as a workshop owner, or still a long way from retirement and realizing your investment, but you still have to have the end in mind. YOU HAVE TO HAVE A PLAN!
You must prepare for the worst case scenario, and know that if it does happen, you have your bases covered.
This might bring up the realization for some of you that you aren’t prepared. If that is the case, and you want some help with it, you can reach out via email at firstname.lastname@example.org. I also have an 8 week online program that will help you get exactly to where you need to be!
Don’t leave this stuff to chance. You are worth so much more than the cost of your equipment!