Profitable Denver Based Attic Insulation Installation Business
This is an excellent opportunity to own a very profitable, well-managed, home improvement services business specializing in the installation of eco-friendly insulation for homes in the Denver Metro area.
This business has excellent books and records and has been pre-approved for SBA Financing to a qualified buyer. With as little as $45,000 down you can purchase this business and enjoy a high annual profit, while still affording to service the SBA loan payment.
Established in 2007 as a specialized attic insulation business, they offer attic, wall and crawlspace insulation. The Seller is proud of the eco-friendly aspects of the business, including the materials used and the resulting energy and cost savings effect from the service the business provides. That strikes a very resonant chord with the environmentally conscious demographic of Colorado homeowners.
As more homeowners are looking to “go green” and reduce their carbon footprint, retrofit insulation is a great area in which to invest. When homeowners compare adding insulation to other more expensive energy saving home improvements such as solar or upgrading doors and windows, adding insulation stands out as an easy, cost-effective choice.
The Seller operated the business as a part-time operation in the years prior to 2014, while the Seller operated another business. In 2014 the Seller moved the business from being home-based, to a leased space in Lakewood that offers and both storage and office space. The business transitioned from total hours of operation by the Seller of about 28 hours per week to about 40 hours per week currently. This explains the increase in revenue in 2014. The Seller currently goes out to each job and oversees it, sometimes participating in the installation. The business had gross sales in 2014 of $306,000 and the owner performed between 1 and 4 installations per day. Demand is steady year round but there is a noticeable increase when the Fall chill hits homeowners. This is an extremely low overhead business with the only marketing being the website, excellent Yelp reviews, and word-of-mouth. The business also serves an excellent niche for attic and crawl space insulation for low income folks that is all paid for with grant money.
On a typical job, besides the owner, there is a bidder on contract that earns a percentage, and also 1-2 installers that are paid per job. The Seller will hire more installers if needed during the busy season and will show a new owner the hiring process and logistics of performing a job. Sometimes an Energy Auditor is hired when customers are attempting to get a rebate from their energy provider. Insulation install jobs are usually performed during traditional business hours Monday through Friday.
Profit Margins: The typical attic job yields a $400-$600 profit margin, with somewhat more for larger attics and less for smaller ones. To minimize the diminishing return of the smallest jobs, the Seller has established a $1000 minimum per job.
Growth Potential: The Seller has chosen to operate the business with only one box truck as he is as busy as he wants to be, but a new owner could grow the business by adding additional trucks and workers and also expanding the geographic service area. The seller does no marketing other than the website and currently receives inquiries from the South metro Denver area, Boulder and Fort Collins. The Seller is happy to share how a new owner might expand the business.
Competition: This a low overhead business and although there is competition with approximately 3 other businesses in the Denver Metro Area, the Seller offers that his business model allows him to be higher quality and less expensive than the competitors.
Reason for Selling: The Seller is moving out of state to be closer to family and friends as they have a baby and plans to grow their family.
Included in the sale of the business is $25,000 of furniture, fixtures and equipment. A box truck vehicle, inventory and insulation blower are included. In addition, the Seller is providing 30 days of training. Everything a new owner needs to successfully operate the business is included in the sale.