Sell my mobile beauty business

[Birdbrain]

When I first read this thread I thought nah, you don't really have anything to sell, but I have now changed my mind after my husband has just been in a similar situation. I'll explain... My husband runs a letting agent and has been approached to purchase a business, this business is another letting agents. He is not buying any property only the landlords they have on their books.

There is no obligation for these landlords to stay with us but have been told their properties will be managed to the same standards and they have agreed to switch. The business was valued on how much revenue those landlords bring in. So I say if someone is prepared to buy then you have something to sell, you just need to make sure you follow data protection guidelines.

 

[KrisKross]

When I first read this thread I thought nah, you don't really have anything to sell, but I have now changed my mind after my husband has just been in a similar situation. I'll explain... My husband runs a letting agent and has been approached to purchase a business, this business is another letting agents. He is not buying any property only the landlords they have on their books.

There is no obligation for these landlords to stay with us but have been told their properties will be managed to the same standards and they have agreed to switch. The business was valued on how much revenue those landlords bring in. So I say if someone is prepared to buy then you have something to sell, you just need to make sure you follow data protection guidelines.

My husband and I rent out two properties, and the hassle as a landlord, of changing agents (outside of a business to business sale, where all of the paperwork, etc, will be dealt with by the two businesses solicitors) is such that I can pretty much guarantee that 90%, if not 100% of those landlords will stay with you, the new agent.

I don't think you can even begin to compare it to a client finding someone different to do their nails every few weeks . Although I do agree that if the OP finds someone prepared to buy then she obviously has something to sell, and she should bite their hand off.

 

[Birdbrain]

My husband and I rent out two properties, and the hassle as a landlord, of changing agents (outside of a business to business sale, where all of the paperwork, etc, will be dealt with by the two businesses solicitors) is such that I can pretty much guarantee that 90%, if not 100% of those landlords will stay with you, the new agent.

I don't think you can even begin to compare it to a client finding someone different to do their nails every few weeks . Although I do agree that if the OP finds someone prepared to buy then she obviously has something to sell, and she should bite their hand off.

Hence why I said similar, similar does not mean the same. Of course I'm not silly enough to think it is the same, But in both situations there isn't something to sell, you are merely selling on details, it's up to the client what they do. However the selling of the details from one therapist to another the therapist has vouched for makes life a lot easier for many too.

 

[KrisKross]

Hence why I said similar, similar does not mean the same. Of course I'm not silly enough to think it is the same, But in both situations there isn't something to sell, you are merely selling on details, it's up to the client what they do. However the selling of the details from one therapist to another the therapist has vouched for makes life a lot easier for many too.

I don't even think it's similar, sorry, we'll have to agree to disagree on this one.

Your husband is buying a client list where his clients, the landlords, at the point of sale (if they've agreed he can be their new agent), are tied into using your husband's business via a contract, there is a notice period to end the contract, a possible exit fee, etc.

The OP doesn't have a contract with her clients, they are not obligated to provide the OP with a set fee/payment/income every month, they can just simply decide they don't want to use the new business owners to carry out their treatments and that's it.

 

[Fran1984]

You certainly can sell a business as a mobile therapist. I'll tell you how I base this.

I and my wife had a carpet cleaning company for 6 years. Over that time built up a loyal base of clients (not contracted to use us). When we decided to sell the business we decided to sell it as a going concern. This would be equipment, database and diary of booked appointments. (No different to a mobile beauty business). We found someone who was willing to buy this. We interviewed them as we worried about OUR clients and the rapport we had built with them. They then tailed us for 3 months visiting all clients and being introduced.

It can be done. And we got what we wanted. I speak to the owner now and again and he is still happy he bought the business.

 

[RED STAR]

You certainly can sell a business as a mobile therapist. I'll tell you how I base this.

I and my wife had a carpet cleaning company for 6 years. Over that time built up a loyal base of clients (not contracted to use us). When we decided to sell the business we decided to sell it as a going concern. This would be equipment, database and diary of booked appointments. (No different to a mobile beauty business). We found someone who was willing to buy this. We interviewed them as we worried about OUR clients and the rapport we had built with them. They then tailed us for 3 months visiting all clients and being introduced.

It can be done. And we got what we wanted. I speak to the owner now and again and he is still happy he bought the business.

That's great, and good luck to the OP.
BUT, I do agree with the previous comments that this trade IS DIFFERENT.
It's personal.
More 'intimate' than other trades.
That being said, it's still worth a punt, and do let us know the outcome.

 

[squidgernetball]

If you have a buyer you have something to sell, and it has to be worth a go.

Good luck

Vic x

 

[WaxGirl]

Sounds like you need to speak to professionals who are used to buying and selling businesses... you could seek the advice of a good solicitor

If you can sell your business and make a profit from what you've worked hard building up then do it

I'm surprised by the way so many in this thread are very keen to tell you that you can't sell rather than exploring options and ways for you to pass on your business and make a gain... doesn't seem very entrepreneuring.

 

[attitude]

Sounds like you need to speak to professionals who are used to buying and selling businesses... you could seek the advice of a good solicitor

If you can sell your business and make a profit from what you've worked hard building up then do it

I'm surprised by the way so many in this thread are very keen to tell you that you can't sell rather than exploring options and ways for you to pass on your business and make a gain... doesn't seem very entrepreneuring.

Why should we be exploring options for her?
I'm sorry if this isn't what she or you want to hear, and it's just my opinion, but all I see that's worth anything is her equipment and stock, a website if any, possibly her Facebook with likes. It might be a bit different if she had a mobile van or some such to sell as well.

 

[cheekychick]

Sounds like you need to speak to professionals who are used to buying and selling businesses... you could seek the advice of a good solicitor

If you can sell your business and make a profit from what you've worked hard building up then do it

I'm surprised by the way so many in this thread are very keen to tell you that you can't sell rather than exploring options and ways for you to pass on your business and make a gain... doesn't seem very entrepreneuring.

Best to be honest then to sit here, tell her what she wants to hear and lie.

 

[wonderwoman]

You have to forgive my sarcasm but im thinking -are they going to tail them at EVERY appointment doing "exactly" whatever it is you do.

Say for instance waxing... id like to see how many people would jump at peeping in on those treatments, hell make a movie whilst your at it. would you pay a deposit to get access to this list. would you stick with each brand offered originally? would you be able to cancel a guaranteed client due to personal preference?- this would be what you are paying for...

I think this is an opportunistic situation that you specifically actually don't need to offer anything towards. If your client list wish to use another therapist its their prerogative, as is theirs to use whomever you recommend, you getting referral fees out of it is exploiting as a conman would of your personal details via a third party website, if you catch my drift. I personally think if your gonna jack it in, just do it gracefully without needing to get a quick buck out of every aspect of your mobile business. Good luck with your future endeavors but do think carefully as to how this is perceived. xoxo

 

[KHS]

OK.....I've followed this thread with mixed thoughts on how the heck can you sell something with nothing to give...so to speak, I've bought and sold businesses but a static business....

I've just been watching Judge Rinder...(don't knock me - My son loves it lol) and a Window cleaner sold his business for £25K soooooooo what's the difference? The only thing he had to sell was a bucket, ladders and a squishy - and the good will of a client Base!! Now I know our trades are hands on personal, his a non personal trade...but at the end of the day a client Base is a client Base...and that's exactly what he sold. Nothing more nothing less....

So OP...fill ya boots...nothing to lose

 

[WaxGirl]

OK.....I've followed this thread with mixed thoughts on how the heck can you sell something with nothing to give...so to speak, I've bought and sold businesses but a static business....

I've just been watching Judge Rinder...(don't knock me - My son loves it lol) and a Window cleaner sold his business for £25K soooooooo what's the difference? The only thing he had to sell was a bucket, ladders and a squishy - and the good will of a client Base!! Now I know our trades are hands on personal, his a non personal trade...but at the end of the day a client Base is a client Base...and that's exactly what he sold. Nothing more nothing less....

So OP...fill ya boots...nothing to lose

agree totally! take a chance and go for it

there will be a buyer out there who would love a ready made business

 

[WaxGirl]

Why should we be exploring options for her?
I'm sorry if this isn't what she or you want to hear, and it's just my opinion, but all I see that's worth anything is her equipment and stock, a website if any, possibly her Facebook with likes. It might be a bit different if she had a mobile van or some such to sell as well.

what a strange thing to say!

You know this is a place of support and encouragement, why wouldn't we want to help a fellow geek?

Why wouldn't we want to keep an open mind and see someone who has built up a business make a successful financial exit from it and pass it on to someone to grow further?

I think it would be fabulous if she could sell it and possibly open up opportunities for other mobile geeks to sell their business in the future

 

[squidgernetball]

what a strange thing to say!

You know this is a place of support and encouragement, why wouldn't we want to help a fellow geek?

Why wouldn't we want to keep an open mind and see someone who has built up a business make a successful financial exit from it and pass it on to someone to grow further?

I think it would be fabulous if she could sell it and possibly open up opportunities for other mobile geeks to sell their business in the future

This is very true. If the op can find a buyer then the very best of luck to her. You can sell a salon with a client base so why not a mobile round?

I think it's been a very interesting topic and I wish the op the best of luck with it. I'm sure this has been done before.

It's a shame to see so much negativity!

Vic x

 

[attitude]

what a strange thing to say!

You know this is a place of support and encouragement, why wouldn't we want to help a fellow geek?

Why wouldn't we want to keep an open mind and see someone who has built up a business make a successful financial exit from it and pass it on to someone to grow further?

I think it would be fabulous if she could sell it and possibly open up opportunities for other mobile geeks to sell their business in the future

I think you misunderstood. I don't believe it's the forum members' obligation to do research for another member. We are simply giving opinions and advice as best we can. That said, I actually spent about a half hour yesterday researching this in hopes of finding a success story. The only ones I found in the UK were sold with a mobile van and were of the franchise variety. I did my best, but my conclusion is my opinion. If she can sell it, good on her, but My personal opinion is that it isn't worth much. I base that on my research and the fact that I, personally, would not pay for a client list.

 

[KrisKross]

It's been interesting reading and has certainly made me think about my own business and what I'd be willing to pay for a client list.

In terms of valuing a business, in most cases, these days, the usual basis for valuation is 3 x EBIT, and her accountant/solicitor will be able to advise her. Where to sell a business - well a quick google will give her the answer to that.

I think this type of mobile beauty business is very different.

I can see a value in buying premises or the taking over of a lease, or a mobile beauty van. I can see value in purchasing a salon with staff, because I think the 'goodwill' part of the business is more towards the salon rather than one individual person within the salon. I can see value in equipment (minus depreciation). I can see some value in stock (though I wouldn't be interested in buying any opened/part used nail polishes for example). I can see some small value in taking over a website/twitter/facebook page.

But in terms of buying the client list/goodwill from a mobile therapist... All I can see that you're buying is an opportunity to do some very targeted advertising to people who you know might be looking for a new mobile beautician. I know how much I'd be willing to pay for that and it would be a token amount - if I had to put a figure on it, it wouldn't be in the hundreds, I doubt it would even be more than £100.

Is anyone willing to put a figure on what they'd pay? Lets say the OP was earning £15k a year (EBIT), her business is valued at approx £45k, would anyone here be willing to pay £45k for it?

As I've said before, if the OP finds someone willing to buy, she should bite their hand off.

But the idea that she will have an abundance of interested buyers and can be choosy to who she sells to, making sure their skills and personality and manner fit with hers, is not realistic.

Nobody has posted anything that has persuaded me that a client list in this scenario is worth anything. I'd love it if they would as I'm a 'one man band' working from home myself, so it's given me food for thought as to how I'd make my business more saleable in the future.

I can see how it works when selling a salon with staff, or if you've developed your own training academy, or you have your own branded products, or its a little-to-zero 'face to face contact' type of business, but I can't see how you can sell a business when in this scenario, in my opinion, the seller IS the business.

 

[surf girl]

OK.....I've followed this thread with mixed thoughts on how the heck can you sell something with nothing to give...so to speak, I've bought and sold businesses but a static business....

I've just been watching Judge Rinder...(don't knock me - My son loves it lol) and a Window cleaner sold his business for £25K soooooooo what's the difference? The only thing he had to sell was a bucket, ladders and a squishy - and the good will of a client Base!! Now I know our trades are hands on personal, his a non personal trade...but at the end of the day a client Base is a client Base...and that's exactly what he sold. Nothing more nothing less....

So OP...fill ya boots...nothing to lose

Were they on judge rinder because of a tiff over the clients list or lack of?

 

[surf girl]

I think when selling a mobile biz with regards to clients the value should be the price ( or a percentage of) of each guaranteed (person who says implicitly they will try the new stylist once) client for one appointment...

The client has every right to not like the new stylist and her work so it dosent seem fair to make a buyer pay for every other appointment for the rest of the year, after appointment number 1 the client is officially the new stylists so I think it's the referral they should be paying for if anything

 

[KHS]

Were they on judge rinder because of a tiff over the clients list or lack of?

Lol no, window cleaner borrowed 5k from a friend to start up business, never repaid it, then sold business for 25k and still didn't pay back 5k to friend