Selling your cleaning business might sound like a complicated process, but with our helpful guide, you can get more out of your sale than you thought.
The cleaning industry can include several different types of businesses, from large scale commercial cleaning companies to housekeeping services. The British Cleaning Council recently announced its 2019 report, which revealed the cleaning industry contributed nearly £50 billion to the UK economy, with 914,000 employees.
Between 2010 and 2018, there was a 38% increase in the number of companies involved in this industry. Turnover rose by 34%, which was twice as much as the UK average.
With that in mind, selling your cleaning company could be an incredibly lucrative option. With many buyers out there interested in a growing market, you could strike a great deal in the sale of your cleaning business. So, if you are thinking of selling, here’s a guide to get you started.
When Should You Sell Your Cleaning Company?
For many business owners, you probably know when you want out, and sometimes there’s no changing your mind. After all, you may have found another opportunity, or you might have simply just fallen out of love with your job.
Either way, it’s important to keep your eye on the industry, and your business’ performance. If you’re currently going through a busy period and there’s plenty of clients, it could be great timing to sell. This is because your cleaning company is likely to be in a good financial position and you’ll likely get a better deal on a sale.
Think about your exit strategy and what might affect it, before you do anything else. Are you a sole trader, or a limited company? Are you a local, domestic cleaning business or a national commercial cleaning company? Factors like this might depend on how and when you want to sell. Different business types will have different methods of selling, so it’s worth understanding which is the right one for you.
Value Your Cleaning Company
There are many ways to value your cleaning company, but it’s helpful to assess your profits and assets. Take into consideration how many client contracts you have, your turnover and how many staff you have. This can help to paint a picture of what your business is worth.
An incredibly helpful way to get an accurate valuation of your business is to use our free tool. We have a valuation calculator that uses real industry insights and factors of recent sales to give you a real-time value of your business.
This information could be beneficial in finding out how you could add further value to your cleaning company. For example, investing in quality cleaning equipment, asking your happy customers for online reviews or even train your staff up further. All of these factors could help to make your business even more attractive to a potential buyer.
Getting Your Cleaning Company in Order
One of the most important stages if you’re thinking of selling your cleaning business is to make sure everything is in order. Your financial records will be of particular interest to potential buyers, so it’s in your favour to ensure everything is presented accordingly.
You should also consider any current or pending cleaning contracts that you have with your clients, including the longevity and history of service. This could be valuable information for a buyer, so they have a clear picture of what they will be buying into.
Employee records should also be in order. The new buyer of your cleaning company may well keep the same staff on, so this is a great opportunity to show off your staff’s capabilities and skills.
Create an overview of your assets; from the cleaning equipment to any company vehicles. Also, consider if you have an office, and ensure this is presentable and professional.
Finding the Right Buyer for Your Cleaning Company
At the end of the day, you might be ready to sell your cleaning company and move on, but you still want to make sure it goes to a good home. Finding a buyer for your cleaning business can seem like an overwhelming task. After all, most people know how to clean, but can they run a successful business
As soon as you’re live over 100,000 buyers will instantly see your listing and will automatically be matched if they’re looking for a business just like yours
Bizdaq will alert you whenever a potential buyer interacts with your business. Any enquiries will be sent to you directly, and you can also track your business’s sale performance