Selling a very small residential gardening business?

[JohnnyHockey13]

Long story short, my wife has had her own residential gardening business for the past few years in Calgary.

Just a 1 woman operation through word of mouth and Facebook groups.

She nets roughly $7-$8000 (gross 8-9K) each year from end of April until end of Sept.

We're moving soon and we're wondering what is the best way for her to get some money from this?

So far, she's only made a post today on her FB about it, but no response from her family and friends so far.

The only other thing I could think of is to contact another residential company and offer to sell them her list of clients?

Anything else we could try?

We have no business valuation experience whatsoever, we just feel this list of clients could be worth something to someone (vast majority of them are repeat annual customers).

[ExtraSlow]

This is worth zero dollars. Potentially less than zero.

[tirebob]

Yeah sadly she probably doesn’t have much more than equipment to offer in a business like that. If she had an employee she was training up to sell it to them then maybe a bit more value but essentially all she has is a modest customer list, and unless they are under secured contract to her business, it is purely goodwill unfortunately and that isn’t worth a lot to a company who is already in the business.

[revelations]

Put it in kijiji and see if anything comes up - people buy up seemingly odd business for the strangest reasons.

[Bytem3]

Many small businesses are worth just inventory plus depreciated equipment value if that

What’s being described is barely a business and there’d definitely be no goodwill value on that client list

[ExtraSlow]

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Many small businesses are worth just inventory plus depreciated equipment value if that

What’s being described is barely a business and there’d definitely be no goodwill value on that client list

That's a clearer way to say what I said.

[bjstare]

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This is worth zero dollars. Potentially less than zero.

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Many small businesses are worth just inventory plus depreciated equipment value if that

What’s being described is barely a business and there’d definitely be no goodwill value on that client list

These dudes know.

There's businesses that generate many (many) times more revenue that still aren't "sellable".

[Maxx Mazda]

Agreed. Don't think she has anything worth selling really.

[ExtraSlow]

She could always write up a financial statement with assets and receivables and intellectual property etc. It's not impossible that its worth something. Specifically if she has a strong web presence and a well known brand. Written procedures and professional marketing material. Something that could be franchised might attract investment.

[ercchry]

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She could always write up a financial statement with assets and receivables and intellectual property etc. It's not impossible that its worth something. Specifically if she has a strong web presence and a well known brand. Written procedures and professional marketing material. Something that could be franchised might attract investment.

Was thinking a pivot to lead generating for local businesses might work, depending on web presence... this could be done remotely from new location, and expanded beyond just Calgary in the future... essentially sell current customers base as warm leads to other businesses in the area. Lots of tutorials online on how to automate that, and tracking what leads to sales

[riander5]

Businesses are valued on recurring revenue. If your wife leaves, how is the business generating cash? It isn't so it's worth nothing unfortunately.

[austic]

Service businesses really depend on client contracts, employees, inventory and any depreciated assets to determine a sales price. With the gross to net only 1K difference they typical net income multiple isnt a good valuation as I am assuming she didnt deductt her wage as an expense so any new buyer would need to account for employee expense to calculate the true net value.

I would say value would be physical assets (at a depreciated value) and any inventory with a small value for the client list (500-1K) depending on how secure they are would be your asking price. The cost to sell it, (lawyers, due dilligence docs etc) might cost you more than its worth.

[JohnnyHockey13]

Awesome, thanks for the info folks....guess she's SOL.

[bjstare]

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Awesome, thanks for the info folks....guess she's SOL.

At least she got to make a few grand/yr for doing something (presumably) enjoyable on her spare time. That's a win in my books.

[riander5]

Sounds like theres also no reason she couldnt do it in your new location. Use all the gear she has?