@flga-2
You were right (above) If you're not grossing 3x your payroll; you're not doing it right.
It's easier if you're solo; you just accept 1/3 of your money as your wage, 1/3 for operations, and 1/3 for feeding the machine.:
@hpalmer When we sold the large local company where I worked to an international outfit they paid us seven figures. A year later many of the key people were gone (including me) and the files taken to the dump (they kept the microfiche but lost the index). One wonders what they were thinking.
A year later many of the key people were gone
I don't think this is uncommon.?ÿ New owner comes in, makes changes that disrupt the company culture, and implements cost cutting to ease the sting of the purchase.?ÿ Employees are agitated by the changes and start looking around, realize they can do better elsewhere and drift away.
In the mid-90s my cousin's husband started an ISP in Berkeley that was very successful.?ÿ He hired talented people and gave them lots of freedom to innovate, paid them well and maintained a low-key but fun work culture.?ÿ In the early 2000s a large national firm bought him out for about $12 million because they wanted the talented staff.?ÿ A year later all moved on.
To be honest if you are just starting out as a business owner a company like that is probably to much to take on at once. With 22 employees the payroll is gong to be a nightmare to keep up with. Even if all 22 are only making $20 an hour you are looking at close to a million a year in just payroll not including any benefits, do you have enough to cover that if you lose all of the current clients, because I am sure the business bank account won't be included in the sale. How much is the errors and omissions insurance per year? How many desks of CAD do you have, those will need renewing periodically. How much is still owed on the equipment and trucks? Without an in depth look at the financials there is no way I would buy a company.?ÿ
My 2 cents.
Assuming a newly minted LS is going to go out on his own. I see it as he has two choices:
1. Start from scratch with no equipment or clients and eat pork and beans for 10 years until he gets established.
2. Buy out a retiring solo or small operation (say over a two or three year period) where he can have a decent income while paying off the previous owner, Have the retiring surveyor assist him with the transition, meeting clients etc. (after all its in the retiring surveyors best interests to see the new guy prosper). After a couple of years of learning the business side and getting his feet under him, he can expand as he sees fit.
I did No. 1 but don't recommend it.
@james-vianna It wont take ten years to get up and running. I started my solo firm half way through 2017, I have brought in over 6 figures this year, 2018 and 2019 weren't bad either
2. Buy out a retiring solo or small operation (say over a two or three year period) where he can have a decent income while paying off the previous owner, Have the retiring surveyor assist him with the transition, meeting clients etc. (after all its in the retiring surveyors best interests to see the new guy prosper). After a couple of years of learning the business side and getting his feet under him, he can expand as he sees fit.
I like the sound of this one for my future.
Assuming a newly minted LS is going to go out on his own. I see it as he has two choices:
1. Start from scratch with no equipment or clients and eat pork and beans for 10 years until he gets established.
I did No. 1 but don't recommend it.
This is kind of the boat that I'm in.?ÿ Being broke for 10 years doesn't sound appealing.?ÿ Was the area that you got going in growing quickly at the time?
@hollandbrisco
You jumped in during prosperous times. Had you started around 2009 to 2013 you might not of made it.
yes until the 09 crash then it took another 4 or 5 years till it got going again. Right now its at an all time high. Who would of thought covid would cause such a demand.
?ÿ
Well, I did No.1.?ÿ It took about 10 years to become established.?ÿ What I learned is that one needs as much business acumen as land surveying knowledge.?ÿ In fact I don't know that solo is the right way to go.?ÿ If I had to do it over again I'd think long and hard about hiring an assistant or two.?ÿ You'll spend as much time managing your business as surveying.?ÿ
Maybe in my next life, I'll figure it out.