Hey y’all- I currently own a bookkeeping firm (which consists of just me) that is netting me a couple hundred thousand a year. I’m also a realtor and will do about $70k this year with that business.
I’m considering buying some sort of franchise or service based business like a flooring company (because of the real estate contacts I now have). Obviously I don’t know anything about these businesses but I feel like I could learn and expand pretty quickly. I just really feel like business ownership in some sort of trade is the way to go in order to expand my “portfolio”.
Am I crazy?
I assume you work alone in home office and do one-on-one with folks looking to buy a home, condo, property, etc.
Most retail service businesses are contact sport. My A/C guy has a fleet of vehicles, 8 technicians, office personal, and warehouse.
He puts in 50 to 60 hours a week. That was after working his ass off for years to build the business.
I’m not sure how you could make room in your current portfolio for a service business.
Even if you could make time, there is notion of best fit to consider.
Are your personal traits a good match with the characteristics of the business under consideration?
For example, service businesses require personal selling, canvassing, SOP’s, QA/QC, inventory management, customer service, hiring and training, payroll, scheduling, etc.
Not to mention financial goals and objectives.
You are doing close to $300K. You might have to sell $2.0 million worth of flooring to make that much.
Even more with a franchise because it takes royalty of six to eight percent off the top.