GC065 -Residential Cleaning Business
Asking Price: GBP
99000
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| Description: |
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Residential Cleaning Business
Ref.GC065
Location London
Asking Price £ 99,000
Established in August 2006, in just over two years this business has become one of the fastest growing residential cleaning businesses in London achieving turnover for the financial year ending 31st July 2008 in excess of £200,000.
Operating throughout London and within the area of the M25 motorway – but with the vast majority of its work accessible via public transport in and around central London, this business offers a wide range of cleaning services – from end of tenancy cleans, post refurbishment cleans and the cleaning of communal areas for the commercial sector right through to the cleaning of carpets, upholstery, rugs and matresses – an area of the business which is becoming increasingly significant in turnover and profitability.
And it is within the residential sector – undertaking ‘one off’ cleans and regular cleans for ordinary domestic households where this business is making an increasingly significant impact. This business works with people who live in studio flats right up to spacious townhouses and has a rapidly increasing customer base that includes new mums, busy professionals, landlords, managing agents, local estate agents, overseas property investors, SMEs, and even the odd celebrity. The business can boast over 100 contracts in place with residential customers – each one generating a minimum of approximately £1,200 per annum in revenue with some ‘Gold’ customers spending in the region of £15,000 per annum with this business.
With a well motivated, reliable and trustworthy team of cleaners, all hand picked, reference checked, fully trained and insured, and with a clear understanding of the importance of customer service this business has developed a highly professional and much sought after operation. Despite operating within what might be considered to be a ‘low tech’ sector, this business has excellent administrative systems and good cleaning processes in place. One of the keys to the success of the business is its ability to understand the individual requirements of each and every one of its customers and to be able not only to communicate those requirements to its cleaners but to motivate them to achieve them. Not surprisingly, it has a fast growing reputation and enjoys strong word of mouth recommendation amongst its rapidly increasing customer base.
With turnover of almost £203,000 – up nearly 440% on the previous year generating gross margins in excess of 51% and pre-tax net operating profits of almost £60,000 after basic salaries for its two Owners totaling £15,500, this business represents an excellent acquisition opportunity. It should appeal to any cleaning company looking to extend its presence in this sector within London and the M25 or just as equally to a Husband and Wife team looking to run their own very profitable and easily managed business. |
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| Financial Information: |
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| Annual gross sales: (GBP) |
N/A |
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Yearly Revenue: (GBP)
Total yearly sales revenue |
N/A |
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Net Profit: (GBP)
Total profit before taxes |
N/A |
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| General Information: |
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| Business Area: |
N.A. |
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| Year Established: |
2006 |
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Is Relocatable?:
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Yes |
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| Business closed or an asset sale : |
No |
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| Is Home based business?: |
No |
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| Real estate status: |
No |
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Reasons for selling:
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Having established a very firm base for the business, one the current Owner wishes to relocate and pursue other business interests. |
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Market competition and expansion:
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This business has developed a very sophisticated and highly effective approach to marketing, using a combination of low cost advertising and direct marketing. Such is the effectiveness of its door drop activity that it has achieved response rates in the region of 3% – 4% for some campaigns. It is strong on branding and promotional ‘trial’ based offers and maintains an excellent database of over 800 previous customers of all areas of the business – retaining the facility for future re-activation campaigns.
Awareness is further increased via its uniformed staff and liveried vans acting as mobile advertising hoardings. However the business benefits most from strong word of mouth recommendation – underpinned by a formal ‘Recommend a Friend’ scheme which it has in place – testimony to the very high levels of customer satisfaction this business achieves.
The business also has a very well designed, informative and easy to navigate website that performs very well in all the major search engines for all appropriate search terms. |
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