Almost every day, I come across a tired plumber like you who decides to hang up the wrenches and retire. “I will just sell my business and that will be my retirement” you say. Then the greatest disappointment in your lifetime happens – the “business” is not really worth anything. For the past several years, you have just created a job for yourself.
Your customers are not locked into you. You never really gave them a reason to call again, except for the cheap price, so there is no value there. You ran every personal expense you possibly could through the business, so the business really did not make a profit on paper. You showed very little income, because you did not want to pay any taxes. So, your Social Security payment will be minimal, because you never paid in much.
You never really paid yourself a salary, you just took what was left at the end of every month. So, you can’t even hire a manager to run the place and have any income for yourself and your family. And, since the business never really showed a profit, who would want to buy a losing business? No one.
For some odd reason, small business owners, and I do think plumbers are the worst, think the business is worth the amount of sales it generated. Sorry, the business is worth the profit it made. Since you never had any profit to speak of, it is worth absolutely nothing. That old beat-up work van you have been driving is worth more than your whole business.
Hopefully you’re not there yet. You are a little younger and have a few years more before retirement. Let me help you now. Stop kidding yourself. Don’t be disappointed and let your family down. Let me help you have a real business, run like a real business, so you do have something to generate income in your retirement, or leave to your children, or a true asset you can actually sell. I can help with Operations, Financials, Hiring, and putting the right systems in place. Get in touch with me today. I provide personalized business coaching for plumbing contractors. Don’t be this guy. Contact me now.
The Plumbers Coach. Detailed personalized business coaching and training for plumbing contractors. Visit us at theplumberscoach.com. Like us on Facebook @ThePlumbersCoach, follow us on Twitter @T_PlumbersCoach, and on LinkedIn @KeithGlass15.