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A person is selling part of his office cleaning business for 10K and gets 20K in anual sales. Good investment?

No contracts but have had the the customers for 2+ years

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Answers (4)
Harry & Sally Vaishnav
Angel Business Advisors
President
Oakland County, MI

Is it the sales or profit. Working too many hours for only 20K in sales doesn't sound like good proposition. I would take a pass on this and look for something that has higher sales and profit potential.

Aug 11, 2010
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Hi Tony,

I would say this is a bad idea. It sounds like you would be buying yourself a job which I assume is not what you want. Are you considering it because of the low cost ? Depending on what kind of money you have, you might want to look into investing. I have a couple clients looking for investors right now to help with purchases of stable, profitable businesses that will guarantee you an income. One business is a non-emergency medical transportation business and the other is a home health care agency. Both clients are considering a straight investor or someone who wants to make a percentage of the business. Terms are negotiable. If you think you might interested, e-mail at deanna.martinez@hotmail.com. Make sure you tell me how much you can invest.

Aug 10, 2010
Buy-a- Company

Agreed. Also, how many hours does he work per year? If he works full time, you're paying $10k to buy yourself a $10/hour job with a lot of stress and risk. Need to know more, but my initial response (based on my guessing as to how much work is involved) is: pass.

Aug 10, 2010
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you need to know the NET revenue, thats after cost of goods, payroll, taxes, etc....annual sales could be 20k but what if expenses are 19.5k? it would take you 20 years to get that back..........

Aug 10, 2010

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