posted
In this month's SignCraft, there is an ad for a Sign Shop in Northern California. It is for sale. And I thought, "Okay, so a person buys this sign business, but doesn't have the same skills or business sense as the previous owner? Will he fail?" Just because you buy a business that has been around for 30 or more years, doesn't always mean you will be the right person to own it. What if the customers expect certain services, such as open on Saturdays or after 5pm. how will effect your new endeaver?
-------------------- Signs by Alicia Jennings (Mudflap Girl) Tacoma, WA Since 1987 Have Lipstick, will travel. Posts: 3814 | From: Tacoma, WA. U.S.A. | Registered: Dec 1999
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posted
i agree with ya........in my years at this i seen a few good sign shops get bought......only to fold up after 2-3 years of inept operation/owners. i know of a few that made that same business better....but they are the exception. and today.....why buy an existing business when all you need is to buy a printer....and now you are in the SIGN BUSINESS))))))
-------------------- joe pribish-A SIGN MINT 2811 longleaf Dr. pensacola, fl 32526 850-637-1519 BEWARE THE TRUTH.....YOU MAY NOT LIKE WHAT YOU FIND Posts: 11582 | From: pensacola, fl. usa | Registered: Nov 1998
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posted
That's not an guarantee either, Joe. I was talking to a sign guy, up in Ohio last week, who told me that he'd been in business for about 3 years.....had 3 shops, making good money. More competition moved in the area, they started cutting each others' throats, and he's down to one shop now, and not doing a whole lot more than keeping the lights on.
That's the trouble, when you make something so easy that anybody can get in....everybody does, and nobody wins.
-------------------- Dale Feicke Grafix 714 East St. Mendenhall, MS 39114
"I can do all things through Christ, who strengthens me." Posts: 2963 | From: Mendenhall, MS | Registered: Apr 1999
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When I made the decision to retire I sold my business to a fellow signmaker in the local area. It worked out well for me and for him and for all of my clients.
I introduced the buyer to all of my clients, supplied him with some extra equipment and stock that he didn't already have, provided all of my customer files and artwork and also provided him with the previous years invoices so he could get a feel for how my pricing structure worked.
It was a "win-win" situation for all concerned.
Of course the secret was that the buyer had a ton of previous experience in the business. My clients simply added to his existing client base.
-------------------- Dave Grundy retired in Chelem,Yucatan,Mexico/Hensall,Ontario,Canada 1-519-262-3651 Canada 011-52-1-999-102-2923 Mexico cell 1-226-785-8957 Canada/Mexico home
posted
I once interviewed for a gal that bought an existing, well run sign business (owner retired), and she "bought" the one employee too, and was looking for another one. I got creeped out when she mentioned she had a masters degree and thought it would be challenging to run a business, but what really sent my head spinning was that she wanted to somehow incorporate Guinea Pigs into her business - she loved Guinea Pigs ... I ended the interview quickly and never looked back.
-------------------- Kathy Weeks Weeks-End Signs & Graphics Lake Elmo, Minnesota Posts: 249 | From: Lake Elmo, Minnesota | Registered: Mar 2009
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posted
What great tag line ..we pig out on design..
Since much of the sign business is personal buying a sign business that is all business that can run by itself without it's owner watching every little thing, has decent chance of continued survival, other than that being so personal selling / buying example of Dave Grundy's is the next best chance of survival.
Other than that what does one have ...a Name, phone number, website, location, the customer list will change on a dime, the way business is run also, this why the value is really how well the business WAS handled.
posted
Someone bought the business of one of my local competitors and seems to be doing quite well.She has a background in advertising and photography and never did any vinyl before, yet this is primarily a vinyl shop. She has been sending customers wanting carved signs my way. I have not experienced people coming to me saying "the other shop just isn't the same anymore."
-------------------- The SignShop Mendocino, California
Making the simple complicated is commonplace; making the complicated simple, awesomely simple, that's creativity. — Charles Mingus Posts: 6714 | From: Mendocino, CA. USA | Registered: Nov 1998
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It's the great advantage of a successful franchise shop. There is a system in place which makes "investing" in a business attractive to non sign people, along with the marketing that corporate provides which makes selling it easier.. But most of the people I know got into the business not as an investment but for the love of the trade and building a business that would be sale able was never a priority. I hope to eventually steer my place into a more marketable property ...
posted
And how do you come up with the price? There are so many variables,,, 1. Lease or own the shop 2. Lease or own the equipment and supplies. 3. You must be able to read accurate sales records from the last 5 years. This is very important. 4. Are all of your designs,CDs,subscribtions included in the price. And do you gain complete owership of the designs. 5. And you must know why the person is selling the business. Retirement or zone change? Sounds like you might need an attorney to read the fine print. And who pays for that? There is no way I could put a price on my left hand. Where I go, it goes. That goes for my creative mind as well.
-------------------- Signs by Alicia Jennings (Mudflap Girl) Tacoma, WA Since 1987 Have Lipstick, will travel. Posts: 3814 | From: Tacoma, WA. U.S.A. | Registered: Dec 1999
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