Very Profitable Home-Based Business in Structural Construction
About the Business: This is your opportunity to own a very established, profitable home-based business in residential structural construction area. The owner/operators do not need to leave their home for bidding, installations, or any other reasons. There is lots of potential to grow the business and the business has a longstanding legacy since owner/operators over 25 years ago.
This unique niche home-based business can be easily transferred to a new owner with appropriate experience. The business provides installation of a structural construction product in the residential market only. Customers include new home and custom home builders and also remodel contractors. The business model is very simple: cost of materials, cost of labor, and built-in profit margin. There is very proven and reliable proprietary pricing model that accounts for material cost fluctuations, labor, and a set margin. This same model is used for bidding every job, and has been effectively used for the last 25 years. As the owner is nearing retirement, he is working only 4 to 6 hours per week in the business.
The organizational structure of the business consists of a husband/wife team, a consulting structural engineer, and 3 other subcontractors. There are about 50 to 60 repeat clients that account for the 30 to 40 jobs per year that they perform. The service area they cover is the Denver Metro area and up through Loveland and Fort Collins. There is no website, the business is on autopilot, and a very attractive point not to be overlooked is that owner is nearing retirement, and he is only putting in 4 to 6 hours per week on the business! There is a confidential golden customer list of customers which will be transferred and introduced to the new owner of the business. An excellent prospective buyer of this excellent opportunity might include a person with construction, design, or engineering experience.
Inventory & Furniture Fixtures Equipment (FFE): The sale of the business includes everything you will need to continue all current facets of operations. Besides the intangibles included in the business, the only hard asset used (and included) with the business is a welding truck with an estimated used replacement value of approximately $20,000. A full list of all FFE is detailed on the Schedule A.
Hours of Operation: The business is open during regular business hours Monday through Friday, 8am to 5pm.
Growth and Expansion for the Business: There is much room for both growth and expansion for the business. With no current existing website, a natural step for a new owner would be to implement an online digital presence and all of the supporting social media marketing and advertising. Since in the company’s history, there were years when revenues were much higher because the owners were younger and put more effort into the business, the easiest way to grow revenues would be to do what the business already does, and in the same geographic area. However, other growth and expansion ideas would be to expand to Colorado Springs area, and also tapping into the commercial market.
Competition: There is one main competitor that the seller is aware of and has competed with them for years. The competitor is much larger, however in the seller’s opinion the competing company is not very selective in choosing jobs based on margin, but rather more interested in their name being known. While there may be other competitors, the Seller’s have carved out a niche for which they are known for, and the Seller feels there is great opportunity to capture as much market share as a new owner desires.
Premises and Lease: The business is located in their outbuilding at their personal residence, however, the business can be moved to anywhere on the Front Range, and can easily be operated out of the home.
Training and Transition: Included in the sale of the business is a general training period of 4 weeks to take place at the current location. It should be noted however, that the sellers are open and flexible to accommodating training around specific skills of the new owner for an appropriate transition. They would also entertain consulting agreements, as they are interested in setting the new owner up for success.
Financing: Because of the excellent books, records, and accounting, the business has been pre-approved by an SBA Lender to a qualified Buyer with only 10% Down Payment. In order to qualify for the loan, the buyer should have relevant business management experience, construction, engineering, or design experience Purchaser may not be an investor or absentee owner in order to obtain an SBA Loan.
In lieu of SBA Loan Financing, Seller will also consider financing a portion of the business sale to a qualified buyer. Terms are dependent upon prospective buyer’s creditworthiness, experience, skills, and personal collateral.
Reason for Selling: Sellers are selling the business for retirement. They are planning on staying in the area for the foreseeable future.