Are you considering picking up your piece of North Carolina’s restoration industry? Before you begin browsing business opportunities, set yourself up for success with a better understanding of the industry itself and the process ahead. Every business transaction comes with its own set of challenges, but these tips can help you move towards buying a restoration business in Charlotte, NC with success.
5 QUESTIONS TO ASK BEFORE YOU PURCHASE A CHARLOTTE, NC RESTORATION BUSINESS
Getting into the restoration industry isn’t for everyone. Disasters don’t follow the nine-to-five, so you’ll need to be comfortable coping with long hours and passionate about helping others through challenging times. However, for many, the industry is a rewarding and profitable way to be your own boss.
The restoration services industry has shown stable growth over the years and is fairly recession-resistant. Of course, purchasing a business is still a huge life decision. Before you jump in, it’s important to consider the big picture of what buying a damage restoration service business entails. Ask the following questions to set yourself up for a more successful transaction.
1. HOW FAMILIAR ARE YOU WITH RESTORATION SERVICES?
If you’ve never dealt with water damage, carpet cleaning, mold remediation, insurance claims, subcontractors, and the other factors that go into the repair industry, then it can quickly become overwhelming. Taking some time to learn about the day-to-day operations within a restoration company can help you determine if it’s right for you.
Buying a small business gives you some advantages over going the startup route. Instead, you can hit the ground running with a good understanding of the business’ operation, cash flow, and history. In some situations, the existing owner may even be willing to stay on and help you learn the ropes!
2. WHO MAKES UP THE CUSTOMER BASE?
Some restoration services will market primarily to homeowners, while others focus on helping other North Carolina businesses. You’ll also want to take a look at what restoration and remediation services the business offers. While you don’t have to keep your offerings the same, it will give you a better idea of what the company is known for and help you start thinking about great opportunities to set your services apart.
3. WHAT COMPETITION DO YOU HAVE?
Restoration businesses are in high demand across the country, and the Charlotte Metro area is no exception. As you begin browsing businesses for sale in Mecklenburg, Buncombe County, and the surrounding areas, you’ll want to assess your competition as well.
4. WHAT IS INCLUDED IN THE SALE?
The cost of starting your own business varies and will depend on the structure of the company. Those that rely on hiring subcontractors, for instance, won’t need as much equipment. However, depending on what services you will offer, you’ll likely need some specialized tools. Water restoration service providers, for instance, will probably require a water-extraction machine, dehumidifiers, moisture meters, and fans. If equipment is worn out or faulty, this should be factored into the business’ asking price.
5. DOES THE BUSINESS MODEL MAKE SENSE FOR YOU?
There are several ways to structure a restoration and mitigation company. You’ll likely find listings that vary from small work-from-home businesses to franchise opportunities and more. Before you make an offer, determine if you’re looking for a turn-key business, the support and network of other franchisees, or if you have another idea in mind.
If, after these considerations, the business looks like a good fit for your goals, then it’s time to discuss the asking price. Find out if the company used a business broker or other third-party evaluator, which typically indicates a fair valuation. However, if they valued the business themselves, there may be more room for negotiation.
Buying a Charlotte, NC restoration business requires a good bit of pre-planning, and having someone on your side can help. If you’re ready to find the right opportunity for you, consider reaching out to Charlotte’s best business brokerage firm. VR Business Brokers have helped guide countless prospective business owners like yourself to a successful sale. Get in touch today to learn more!