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Retiring from one business and building up another

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retirement
2K views 27 replies 15 participants last post by  a1Jim 
#1 · (Edited by Moderator)
Hi Gang
I've decided to retire from my contracting business it's just a getting a little tough for a 70 year old , 30 years is enough, but this will give me more time for the shop and teaching, I've had to turn down quite a few students because of good sized contracting jobs. Take a look at my truck and see if you can figure out where I came up with my name for LJs :))

Wheel Tire Vehicle Motor vehicle Automotive lighting


anyone interested in living in Southern Oregon and wanting to step into a ready-made contracting business
send me a pm.

Thanks
Jim

https://oregoncoast.craigslist.org/reo/d/exchange-or-sell-successful/6672260760.html
 

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#3 ·
Hi Tom
Thanks for the good wishes.contractiong has paid for my woodshop along with woodworking commissions.
It's been a bit of a challenge hanging in there with contracting the old body just says enough, my head says keep going and I'm still getting lots of calls for bids and work, so hopefully, a new owner will be able to take advantage of those.
It's great your getting enough to cover your woodworking from your practice, It's just so crazy to me that someone as intelligent as you with a good education has to quite, I guess your area just doesn't have enough clientele. It's great you have woodworking to do and create.
 
#7 ·
Sounds great, Jim. The very best to you going forward. Retirement brings a certain sense of freedom that can't be beat.
 
#9 ·
I recently retired from my textile business and an looking for a new business. Here in California the regulations were killing me since I'm a small business I couldn't keep up with the big guys who have a Department for everything.
How are the business regulations in Oregon?
 
#10 ·
Hi James
I think they're a lot easier than in Ca. I know getting a contractors license is far easier here than Ca. The only thing tougher here that I know about is getting an electrician's license.
 
#11 ·
Good luck getting a buyer Jim. In WA all you need to get a general contractor's license is a $12,000 bond.

A friend and his partner bought an electrical contracting business many years ago. The owner took them around and introduced them to all the regular customers. When they called, they asked for Tony. Tony retired, but they didn't give them a chance. Apparently they shopped for someone else. Seemed like a strange reaction.
 
#18 ·
Desert
I've sold businesses years ago that I started and the buyer has gone on to be very successful, Established businesses usually cost more but if the buyer follows the seller's program assuming the seller was successful I think a new owner can do well, I intend to share what has worked for me with a new owner,in any business there are no guarantees. I think a new younger owner can realize a higher return by doing the work themselves rather than paying help which became more necessary as I've gotten older.

Thank you Mike
 
#22 ·
A broker wanted we to list it and ask 2 1/2 times gross but what I m asking is less than 1 times gross.

- a1Jim
Good luck Jim. You were a big help to me with your advice getting started here on LJ years ago. Much appreciated.

I think you are probably right. The broker would be right if you had a couple employees and an office that customers walked into. But owner/operator businesses have a low barrier to entry. From the pictures, $30k would but the equipment and truck (or more) and you could spend $25k on advertising and be known all around town in a hurry.

Selling your book of business to another existing company might be a good option. They might be more willing to accept a merger/takeover where your customers fold into their business. You could get a kickback over a couple years of some %.
 
#24 · (Edited by Moderator)
Brian There's no need for me to spend to spend $25k for advertising in 30 years I have refined my advertising to the point that I know were to spend my advertising dollars of less than $2500 a year. Actually having offices and office staff reduces your profitability for a small company keeping my business lean increases my profitability along with knowing what type of work is most profitable and using employees or subs under some circumstance makes better sense and not for other jobs. All of these things is where a new business owner wins by buying an established business so they don't have to spend years and thousands of dollars learning what works and what doesn't work, it's handed to them on a silver platter from the previous owner.

Thank you John
 
#25 ·
Good for you, moving on. At some point we just have to realize that the work we are doing just doesn't suit us, physically or mentally. I just demolished a wall out in the front of my property. One of my sons did most of the work, and I had the materials delivered. I used to buy the stuff, load it in the truck, unload it and build the wall (for example). Now that I'm old, I have to hire most of it done. You've sold the "good will" of the business; it's up to the new owners not to mess that up. Have fun with your new endeavors!
 
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