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Old 11-26-2012, 08:00 PM
 
1 posts, read 6,594 times
Reputation: 10

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I am thinking about selling my pet sitting/dog walking business. I have been in business since August 2010, however from August-Dec it was pretty much breaking even with expenses/gas. 2011 generated $22,000 net and so far in 2012 it is about $45,000 net. I have two sub contractors that I pay out 70% of each service, however I do the majority of the work. If I do sell, I would have to stream line both sitters to doing the majority of the work, however there's always the option for the new owner to do most of the work, or "hire" more ICs for current/new clients. For the amount of work I currently have 3+ people is needed. Currently, both have signed a non solicit IC agreement, states that for one year after termination of the contract they cannot solicit any of my current clients, however as ICs I can't have them sign a non-compete. There is very little overhang with this business, aside from gas, it is just insurance/bonding, web site hosting/domains, priting marketing collateral (business cards, tee shirts, etc) and occasional internet marketing, all which total under $4000/yr. As for paying sitters, as I said it is 70%, however it is not 70% of gross, they could do as little or as much work as the new owner would like, right now I have them doing a little (they are new hires) but both are willing to take on as much as I can give them. They are also covered under the insurance/bonding.

We have an awesome website and blog, and strong web presence, we utilize our social media accounts multiple times a day. We have good reviews online, real reviews from actual clients, and come up on the first page for most search engine searches ("dog walker in "town" nj", "pet sitter "county" nj") most of the time as the top hit. We pick up at least 2 clients a month, some times 4-5 new clients that need services around holidays/summer.

I did not pay for our website, tee shirt, or business card design as I am a web developer/designer as well, but I would charge someone about $2000 for all of those.

We handle payments online, as well as scheduling online. Our sitters can log in to their accounts with their smart phones and check off completed services, view their schedule, and leave comments about a service. This is a nominal monthly expense.

Our paperwork for new clients is VERY detailed, with just about everything you could possibly think to ask to care for someone else's pet.

We have nailed down a very effective conversion rate with prospective calls. Of all the consultations we've been on (50+), only 2 have not called back.

I started the business as a sole proprietor but formed an LLC earlier this year. There is healthy competition in the area, about 8 other pet sitters/pet sitting businesses. Some have been around 8+ years, however my business has cared for more clients/pets in the last 2 years that I have been in business than most of the pet sitters have in the 5+ years they have been in business.

I have to admit, paperwork is a bit messy, but everything is recorded.

I'm looking for advice on what to do next, is it worth selling or should I continue to own the business and just collect a percentage, possibly how much my business is even worth. Reason for selling is I'm planning to move out of state.

I'm good at pet sitting, and like to think I'm a pretty decent business owner, but this is something totally new to me, so any all advice/criticism is much appreciated.
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Old 11-26-2012, 08:56 PM
 
Location: Wyoming
9,729 posts, read 18,522,190 times
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What would it cost to hire you, or another "you", to run the business as it's being run? If $45K or more, it's worth nothing. If you'd stay and do your normal job with it, or if you could hire someone else to do it, for (say) $25,000, then you've got a $20K business to sell and should be able to get something out of it.

When I was buying businesses years ago, they were worth their gross annual sales or more plus real estate, but these were mostly fairly large "small businesses" that were well established (50+ years) and had thousands of customers and little to no competition. To pay the gross annual sales was cheaper than to start a new one. They typically netted 20 percent after paying a reasonable salary to the manager and board of directors/officers. If not, they weren't worth their annual gross, so they'd pay for themselves in 4-5 years, 8-10 years including bank interest.

With a small business like yours, with a higher degree of risk involved, it's not really worth that much. I think your best bet would be to try for a small percent of the sales for a few years. That would give you some incentive to help make it work and would certainly make it more interesting to me as a prospective buyer.

I'd talk first with your subcontractors to see if they might have an interest.
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Old 01-23-2014, 10:38 PM
 
2 posts, read 6,418 times
Reputation: 11
I recommend you to continue with your buisness because this profession ia all about caring the animals or pets. I think caring which is an noblest job like doctors. I am pet professsional for last 10 yeras and I had gone through a lot of hurdles at that time my friend who is also a animal care profesional Love your pets, who encouraged in all activities regarding animal care and services. Now I feel so happy with my pets.
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Old 01-25-2014, 09:04 AM
 
Location: All Over
4,004 posts, read 5,003,566 times
Reputation: 3104
Quote:
Originally Posted by shawn Robert View Post
I recommend you to continue with your buisness because this profession ia all about caring the animals or pets. I think caring which is an noblest job like doctors. I am pet professsional for last 10 yeras and I had gone through a lot of hurdles at that time my friend who is also a animal care profesional Love your pets, who encouraged in all activities regarding animal care and services. Now I feel so happy with my pets.
i see this is a very old thread which was dugup but since it's been resurected. many businesses like this don't have a lot of value when selling as 99% of the business is you. people have a relationship with you and trust you with theiir animals/family and their home as you have to go in your home when your not tehre.

when you sell all that is lost. sure the new buyer gets a client list of whome about 90% may stop after you quit being the face behind the business. id recommend keeping the businesss yourself.
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