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What about the intangible assests such as reputation? Does this not get converted into cash value? Would be the same for musicians and consultants of many sorts. But in any dynamic involving human systems there is bound to be interpretation and debate, agreement and disagreement. .. plenty has occurred just on this thread. In any case I think I have gathered enough information to move on. Thanks everyone!
The reputation pretty much goes out the window with a new owner if its not incorporated etc.. yes with the take over of the website the transaction could pretty much be seamless provided you provide the same, if not better service.
Lets put it this way.. Its like Michael Jackson selling his "business".. If you cant sing and dance like he did, then all that can be sold is the receivables and the rights to fiture cash flow.
Without customer contracts, there arent any assurance of a cash flow, so I think you're on the right path with the "few thousand" you mentioned, depending on how much revenue the business is bringing in.
Just dont over pay, and try to find out information like how long the customers have been with them etc.
Last thing you want to deal with is the seller propping up the customer list by making some special deal to padd the list and then the minute the "business" is yours, the customer base leaves cause you arent abiding with the special terms they made to keep them as a customer.
Thing about it this way. If you wanted to go start your own dog walking business what would it cost you? Pretty much nothing, maybe a few leashes, bowls, treats but honestly most stuff is probably provided by your customers. There is really no cost with this business. The biggest cost is probably a bond or liability insurance which is not something you would buy from her anyway so pretty much all you are getting from her is customer lists. Not to say those are not valuable but there's no certainty any of her customers will stay on with you running it so for that reason you wouldn't want to offer that much. I would look at her client list, assume 75% are going to cancel. Then take the remaining 25% and give her a years worth of sales for that 25% of the business. PErsonally this is the most I would feel comfortable offering.
i.e.- 6.25% of her sales last year.
I have no idea if that is good. I was just curious about the math.
You bring up a good point, with this type of business there's a good chance your friend will wind up not finding a seller and walking away with nothing so don't offer too much.
This is what i was thinking too. What is she really selling you except a client list that she can't even use anymore?
What about the intangible assets such as reputation?
No. As said: "not even the list of people who trust your fried"
There is no business here to buy.
About 20 minutes after your friend stops doing it
there will be void EASILY filled by anyone interested in doing the service
and willing to put up and then answer some ads.
About two weeks later THIS person will have a list of names too.
No. As said: "not even the list of people who trust your fried"
There is no business here to buy.
About 20 minutes after your friend stops doing it
there will be void EASILY filled by anyone interested in doing the service
and willing to put up and then answer some ads.
About two weeks later THIS person will have a list of names too.
Fine. Okay. It's not a business. Maybe you woukd be more agreeable to duscussion if I had appropriately titled this "personal service opportunity literally falling into my lap"? In any case I think you are omitting various qualitative components in this personal service operation. 1) You are ignoring the essential fact that I will be properly introduced to each client either before or after comprohensively shadowing my friend. 2) You are ignoring the fact that because of my commitment to community service I already have a wide reputation for generosity, drive, and probably most important to me, integrity. Most of these clients will already know me from various social groups and articles published in a community newspaper. In your mind, I might just be some regular joe(ann) who up and decided to take a job.... simply won't be the case... I posed the questions because I do have something to consider. As my name is NOT "Mr. Rational", I work with qualitative in addition to the quantitative. She is a friend and she has worked hard over the year to establish this "exclusively ours" (as in our 9250 resident urban village) . She is willing to give all of this to me and I think it is just and fair to award her with some sort of compensation. Because if anything, that is what my reputation is all about...goodwill, paying it forward, karma.... she'll probably repay me in honesty and cooperation, but if she doesn't I will be okay. .. I also have a good ability to quickly and effectively snuff out those who aren't as respectful. Life is too short to deal will with bull sh-.
Fine. Okay. It's not a business. Maybe you woukd be more agreeable to duscussion if I had appropriately titled this "personal service opportunity literally falling into my lap"? In any case I think you are omitting various qualitative components in this personal service operation. 1) You are ignoring the essential fact that I will be properly introduced to each client either before or after comprohensively shadowing my friend. 2) You are ignoring the fact that because of my commitment to community service I already have a wide reputation for generosity, drive, and probably most important to me, integrity. Most of these clients will already know me from various social groups and articles published in a community newspaper. In your mind, I might just be some regular joe(ann) who up and decided to take a job.... simply won't be the case... I posed the questions because I do have something to consider. As my name is NOT "Mr. Rational", I work with qualitative in addition to the quantitative. She is a friend and she has worked hard over the year to establish this "exclusively ours" (as in our 9250 resident urban village) . She is willing to give all of this to me and I think it is just and fair to award her with some sort of compensation. Because if anything, that is what my reputation is all about...goodwill, paying it forward, karma.... she'll probably repay me in honesty and cooperation, but if she doesn't I will be okay. .. I also have a good ability to quickly and effectively snuff out those who aren't as respectful. Life is too short to deal will with bull sh-.
To claim its not a "business" isnt fair, because it is.. The question really comes down to what is the value of that business, which is essentially a list of customers that previously hired a dog walker and may or may not be retained as a consumer, after acquiring the business.
Newsweek magazine company recently sold for $1.
your ball park previously stated of a couple of thousand, is probably fair to both of you, without knowing the specifics of how many customers, how much revenues, how many hours you have to spend etc.
This is not the type of business one should purchase, that's more so restaurants, and franchises. Just start from the ground up, and use the money for you own website, and marketing.
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