Owner Financing is Available!
Business Overview:
This business is the market leader and only franchisee in its state, operates with a general contractor license and has been innovative in leading new initiatives on behalf of the franchisor. It is has been continuously operating since 1999 and under the direction of the current owner since 2007. Growth has been driven through significant incremental investment in marketing initiatives over the past 3 years, including telemarketing, social media and testimonial videos, combined with a refinement of the business model to increase lead conversion through the use of two dedicated outside sales professionals. As a result this business has successfully navigated the recession and closed 2010 with strong performance, reaching $750 thousand in total revenues (and $529 thousand in labor revenues). Excellent results are continuing into the second quarter of 2011 behind these key sales and marketing programs.
For more information regarding this listing please contact us by completing the "Contact the Seller" form to the left. We look forward to hearing from you.
Property Features and Assets:
The real property that houses the office (built in 2008) is owned separately. The building is about 1,300 square feet plus 100 square feet of common area and new construction in 2008. The business benefits from a full-service lease that includes T1 lines supported by an off-site server and includes ample parking with rate of $1,500 per month. Company truck included in the transaction, currently has about 36,000 miles, will be paid in full in September, 2011. All equipment paid in full other than a lease for an office copier. All furniture custom and new in past four years. Software includes franchisor specific and separate Estimating software for operations.
Market Competition and Expansion:
Industry is expected to grow on average about 10% annually through 2014 (Integra). Average revenues for smaller specialty contractors were $546 thousand with gross margins of 18%. This business compares favorably to national averages at both revenues and gross margin delivered. In addition to the owner, business employs 3 FTE plus 2 outside sales professionals (commission) and about 30-40 active craftsmen (commission). Growth over the next 4-5 years supported by key strategic initiatives already underway:
• Residual effects of over-investment in marketing during past 3 years;
• Expansion of revenues sourced from larger projects;
• Better management of work order inventory utilizing new software tool to reduce slippage;
• Improved project lead conversion rate to better than 50%;
• Increase in commercial accounts providing recurring revenues.
Reason for Selling:
Owner retiring.
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is a franchise resale opportunity.
Resources: