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Hi Guys

I see people still selling shoe repair shops is there still a market for this,,,, do other independents still buy other shops and how do they value them. My shops been here for 10 years averages 130k per year then rent is 16k no rates then stock and electric  ive been told i wouldnt get 60k for it which doesn't seem alot to me 

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46 minutes ago, marky11 said:

Hi Guys

I see people still selling shoe repair shops is there still a market for this,,,, do other independents still buy other shops and how do they value them. My shops been here for 10 years averages 130k per year then rent is 16k no rates then stock and electric  ive been told i wouldnt get 60k for it which doesn't seem alot to me 

seriously, 60k?

i've seen places online that sell for 25! incl stock machines etc

good luck

 

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but what is there turnover at 25k etc location footfall i suppose it all comes into play

this is my question 25k is too cheap i would say. it cost me 40k to set up why would people sell for that i dont get the figure if a place is earning you say 1000 aweek why do people say 25k 

 

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so are you saying every shoe repair business is only worth 25k mine comes fully fitted  machinery computer engraver etc etc  massive shop  high st location huge contracts with estate age

nts around 15 plus contracts with local council plus 2 satalitte dry cleaners taking in work for me yet its only worth 25k i cant see how it wouldnt pay to sell which is my original question are business still selling or folding i spoke to siserve the other day they said its quite bad out there independants closing and timpsons closing branches as well 

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no one can be sure what it will sell for , the reality is it would sell for what ever someone is willing to pay for it at end of day .

contracts only carry any worth if the revenue they produce is proven and it can be guaranteed they will continue after the sale , the assets like machinery etc will be worth their 2nd hand value to most buyers .

you get the right buyer at the right time and you get a good price , you dont then you may be insulted by some of the offers , every area , every situation will differ , you can wait for a better price you do better need a quick sale you do worse , but its certainly a buyers market in most areas at present still .

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20 minutes ago, marky11 said:

but what is there turnover at 25k etc location footfall i suppose it all comes into play

this is my question 25k is too cheap i would say. it cost me 40k to set up why would people sell for that i dont get the figure if a place is earning you say 1000 aweek why do people say 25k 

 

93K turnover lock stock etc and it was a fantastic looking business.

14 minutes ago, marky11 said:

so are you saying every shoe repair business is only worth 25k mine comes fully fitted  machinery computer engraver etc etc  massive shop  high st location huge contracts with estate age

nts around 15 plus contracts with local council plus 2 satalitte dry cleaners taking in work for me yet its only worth 25k i cant see how it wouldnt pay to sell which is my original question are business still selling or folding i spoke to siserve the other day they said its quite bad out there independants closing and timpsons closing branches as well 

I think we are all in cuckoo land, nothing is selling at the moment (in this trade) yes if you have a dozen shops or more, but single?

I hope i'm wrong.

I heard a guy recently asking 200K as he thought it worth a fortune, his turnover was about 250 - he still has it - three years later

small people (working for someone) will not take the chance of securing a large loan and 'hoping' your turnover will see them alright. 

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High Turnover is only good if the profit margin is high, otherwise it means nothing. 

Net profit, after all the costs deducted and staff wages paid is the main factor. 

 

 

 

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A business like ours where there's only one shop involved with little infrastructure is only as good as the person in it, the seller is the biggest asset the business has. Once you take them out of the equation it holds little value. Cheap machines are everywhere. Why would you spend so much to start a shop? you can take out a lease next door and do it for next to nothing.

 The only shoe repair shops that have a true value, are those that are damaging a competitor by being there, if the competitor is big enough they can swallow the hit just to get rid of the competition.

IMO

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32 minutes ago, Auto Key Wizard said:

The sale of your business will not provide you with any investment or retirement fund, This needs doing whilst the business is trading.

Don't see why not!!  if it can be sold!!!   for enough money!!!   A colleague of mine recently sold his 1.5 mil I could just about manage on that.

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I own the premises we are in all our machinery is owned by us so just by selling everything I have there is about 150k and that’s just from closing down so my retirement fund is pretty good. If I sold as a going concern I would hope to reach £250k.

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12 hours ago, grahamparker said:

I own the premises we are in all our machinery is owned by us so just by selling everything I have there is about 150k and that’s just from closing down so my retirement fund is pretty good. If I sold as a going concern I would hope to reach £250k.

Just need to find a buyer, with the money, willing to buy. Job done.

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1 hour ago, grahamparker said:

Not for another 10 years yet, I still need to buy a Silca Idea first always wanted a full set.

Good for you, I wish you the best of luck.

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I don't really understand why it's thought that a business can't be sold on at a decent price.  It happens every day in different businesses.  Why should our industry be any different?  At the end of the day there are investors out there that have money sitting in the bank losing money in real terms every day.  A good business, in the right location with a track record of growing revenue and most importantly net profit must be worth something other than the value of the assets.

For example:  If a business is turning over £150,000 with a net profit of £50K per annum.  The right investor with cash could purchase that business, put the right staff in and still net a 10% return on investment.  Or if someone had the skill set required and the funds or means to raise the funds, is going to walk into an immediate decent income stream.  Someone starting from scratch will take 3-5 years to build that sort of revenue, so surely it makes more sense to walk into an established business?  Yes, there is the argument that the business is only as good as the people running it, but that's down to the new individual behind the counter to make sure they maintain the reputation and the business. 

 

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you can put any price you like on the business but its only worth what someone is prepared to pay for it at the end of the day ,you can reject any offer but remember the next offer could be higher or it could be lower ,you hold out for what you think it is worth could end up costing you money ,its all a game of chance 

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7 hours ago, Simes said:

I don't really understand why it's thought that a business can't be sold on at a decent price.  It happens every day in different businesses.  Why should our industry be any different?  At the end of the day there are investors out there that have money sitting in the bank losing money in real terms every day.  A good business, in the right location with a track record of growing revenue and most importantly net profit must be worth something other than the value of the assets.

For example:  If a business is turning over £150,000 with a net profit of £50K per annum.  The right investor with cash could purchase that business, put the right staff in and still net a 10% return on investment.  Or if someone had the skill set required and the funds or means to raise the funds, is going to walk into an immediate decent income stream.  Someone starting from scratch will take 3-5 years to build that sort of revenue, so surely it makes more sense to walk into an established business?  Yes, there is the argument that the business is only as good as the people running it, but that's down to the new individual behind the counter to make sure they maintain the reputation and the business. 

 

150K, 50K net profit, few and far between in this trade, more realistic would be 25k net profit. Purchase the business, install a manager on 25k per ann, nil profit, no return on investment.

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I’ve been looking into buying an already established shop for the last few years and it’s the same shops now that was up for sale then. Maybe it’s people asking for too much or maybe it’s just not a business that people want to invest in anymore 

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as lee said you are your businesses best asset without you the machines are just that machines and have second hand used value only ,your customers come to you not the machines its your knowledge that does the work and that is not for sale ,customers are fickle you leave and sell up there is no sure thing that they will keep using the shop, they may not like the look of the new owner ,these are all factors to think about when deciding a price ,at the end of the day if the shop is rented then as before all you have for sale is used second hand machines of which these days there are plenty about 

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On 5/19/2018 at 3:52 PM, elfman said:

as lee said you are your businesses best asset without you the machines are just that machines and have second hand used value only ,your customers come to you not the machines its your knowledge that does the work and that is not for sale ,customers are fickle you leave and sell up there is no sure thing that they will keep using the shop, they may not like the look of the new owner ,these are all factors to think about when deciding a price ,at the end of the day if the shop is rented then as before all you have for sale is used second hand machines of which these days there are plenty about 

This is very true we are the biggest asset of our shops/businesses,  but if your looking to sell your business wouldn't it be productive for both the seller & buyer to have a transition period where "the old" & "new" owner/shop manager are working together for a time so the customers doesn't get that sudden shock of a new face where.....lets say Chris for example as been for years & he did it this way, always new what we used ect ect. Don't get me wrong if i was selling up to go & retire/relax i wouldn't want to be hanging around & if i was buying a business i would want to put my stamp on it & start pushing forward with my ideas but i think for the long term customer this would make the change over much easier & more likely to keep their custom for the new party.  I'm many years from this dilemma but wouldn't his help in a small way of seller the business as a hole & look more appealing to the buying party.     

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45 minutes ago, chrisorros said:

This is very true we are the biggest asset of our shops/businesses,  but if your looking to sell your business wouldn't it be productive for both the seller & buyer to have a transition period where "the old" & "new" owner/shop manager are working together for a time so the customers doesn't get that sudden shock of a new face where.....lets say Chris for example as been for years & he did it this way, always new what we used ect ect. Don't get me wrong if i was selling up to go & retire/relax i wouldn't want to be hanging around & if i was buying a business i would want to put my stamp on it & start pushing forward with my ideas but i think for the long term customer this would make the change over much easier & more likely to keep their custom for the new party.  I'm many years from this dilemma but wouldn't his help in a small way of seller the business as a hole & look more appealing to the buying party.     

But still 'finding' the buyer?

sorry being negative but I've had several offers and the people could not get the funds.

I have now resolved my problem and looking to retire in the next year or so lol

na probably be here till i'm 90!

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When I used to buy and run my own businesses, and I've had a few, the first thing I looked at was the state of the machines, all machines.  If there was a lack of investment in those, then there would definately be a lack of investment, vision, from the owner, walk away!!!!

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25 minutes ago, B.C said:

But still 'finding' the buyer?

sorry being negative but I've had several offers and the people could not get the funds.

I have now resolved my problem and looking to retire in the next year or so lol

na probably be here till i'm 90!

Very  true. It's hard enough at time to find a  new member of staff let alone someone who wants the whole business. If i ever do get my own shop i'll look to start selling it ten years before i plan on retiring from the sounds of things.

 

 

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6 hours ago, keithm said:

When I used to buy and run my own businesses, and I've had a few, the first thing I looked at was the state of the machines, all machines.  If there was a lack of investment in those, then there would definately be a lack of investment, vision, from the owner, walk away!!!!

If the machines all work why replace??

Anybody would think you sell them!

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