Retiring Business Owners

[Babber101]

I work for a large Corp and have experience in finance, strategy, sales & customer service

I'm 40 and am ideally looking to make a change for the 2nd half of my working life

My ideal scenario would be to find a sole trade/small business owner who earns a decent living but is looking to retire. Because the business is just them and is so small they can't really sell the busines - nothing really to buy but instead of just folding it and walking away I would like to work with/for them for 6 months to learn the business/customers and gradually take over.

I would pay them an agreed amount for this - effectively for the on the job training they provide and for the support/guidance they give in getting me going. That way they get some money out of the business rather than scrapping it for nothing and I get a warm rolling start to a business rather than just starting from scratch

I'm not thinking about large/complicated businesses - maybe - window fitters, kitchen fitters, fitted wardrobes, tree surgeons, fencing/garden landscapers, cladding/roofing etc

There seem to be loads of these 1 man bands that earn a good living with many approaching retirement so it seems a good solution to give them a cash exit when they wouldn't otherwise get one.

My questions/challenges:
1. Finding these opportunities - by there nature most of these are low key, don't have websites, phone rings because they have been doing it for 30 years and people know them/refer them
2. Explaining this proposition - from the conversations I have had most of these guys just don't see the value in what they do - I.e. Nothing really to hand over, they see it as a job which it is but it's a self employed job
3 am I completely deluded in my thinking (que deluge of frank pistonheads comments...)

[Matt_E_Mulsion]

I think that it would be very difficult to take over/buy out a small business that you have no knowledge or background in. I'll assume you know nothing about roofing, tree surgery or window fitting (to use your examples) and I really don't think it'd work having a man in charge who doesn't have the background in that niche industry.

[Zio Di Roma]

Babber101 said:

I work for a large Corp and have experience in finance, strategy, sales & customer service

I'm 40 and am ideally looking to make a change for the 2nd half of my working life

My ideal scenario would be to find a sole trade/small business owner who earns a decent living but is looking to retire. Because the business is just them and is so small they can't really sell the busines - nothing really to buy but instead of just folding it and walking away I would like to work with/for them for 6 months to learn the business/customers and gradually take over.

I would pay them an agreed amount for this - effectively for the on the job training they provide and for the support/guidance they give in getting me going. That way they get some money out of the business rather than scrapping it for nothing and I get a warm rolling start to a business rather than just starting from scratch

I'm not thinking about large/complicated businesses - maybe - window fitters, kitchen fitters, fitted wardrobes, tree surgeons, fencing/garden landscapers, cladding/roofing etc

There seem to be loads of these 1 man bands that earn a good living with many approaching retirement so it seems a good solution to give them a cash exit when they wouldn't otherwise get one.

My questions/challenges:
1. Finding these opportunities - by there nature most of these are low key, don't have websites, phone rings because they have been doing it for 30 years and people know them/refer them
2. Explaining this proposition - from the conversations I have had most of these guys just don't see the value in what they do - I.e. Nothing really to hand over, they see it as a job which it is but it's a self employed job
3 am I completely deluded in my thinking (que deluge of frank pistonheads comments...)

You're 40. At your age I wouldn't be looking to enter a physically demanding business, like those you mention.

Also, if you find a business that is viable and where the owner is planning to close it, you could just set up in competition and steal their customers without paying them a bean. Some of the businesses you mention will have manufacturers who are prepared to help you get up to speed, if you are going to sell their products.

At your stage in life, I'd be looking for a business opportunity to allow me to work on the business, rather than in it, such that I could sell it on later. Not find myself in the same position as the owner / managers you mention.

[Gilmore]

Should be able to help you with some pointers:

Where in the UK are you based?
What sort of time commitment are you considering I.E hours worked per week?
What sort of £ are you expecting to make?

[Insurancejon]

Have you tried browsing Daltons?

[Ziplobb]

I am struggling with you you would think a business with a decent imcome would not be worth anything ? yes it wont be worth waht other businesses maybe and the valuation multiples different.

I bascially did what you describe . I had a little previous exerience in the buisness area and had worked in this shop as a teenager and on saturdays for a few years. Business established since mid 1950s consistantly year on year produces profit.
Owner wanted to retire but it still cost me £110k
at the time it made c.£20k pa so basically what I was earning 16 years ago.
It now turnovers 5 times what it did then and provides a very good level of income for my family. Its just me. Its also proved to be covid resilient.
BTW I am looking to retire in the next 2/3 years but I do want some money for it ...

[Babber101]

Thanks for all the comments - much appreciated

I am based in Gloucestershire

I have fitted kitchens, bathrooms, windows and fences in the past - the reality with a lot of these skills is the more you do the better you get so looking to buddy/partner up with someone more experienced where I can get more experience, learn from them and get introduced to some of their customers/contacts in exchange for me giving them some money.

As an example a friend of a friend was a window fitter, sole trader, was doing it for 30 odd years, retired last year and just sold his tools and van - there was nothing really else to sell, no assets, no websites or anything but he was consistently earning £50-60k a year - he just wanted to stop/retire.
I would like to work with someone like that for 6 months or so - improve my skills/confidence and takeover his customer contacts etc - and pay him more than he got for the van/tools etc

Not looking to take on anything with property/leases etc

[Vincecj]

I'd be happy have a chat with you.

[cholo]

With the type of business you mention - if they are one man bands, then the whole 'business' is based on the person and their experience and expertise.

Take that person away and replace them with somebody with no (or very little) experience and reputation and surely you no longer have a viable business?

[Al Gorithum]

I'm in the M&A space.

I wouldn't consider one man bands at all as I'm not looking for a job. I'll only consider firms that can run without the Principal. As you said, there are thousands of opportunities out there - especially Baby Boomers looking to retire. Feel free to DM me.

[hotchy]

My local fishman retired. Best eggs in town. Would get a tray weekly and more often than not double yokers. Anyway he wanted anyone to take over for free just to keep his round going and his old customers happy. Nobody wanted it and he finally retired at 85 because his van MOT was too expensive. He won't earn anywhere near any of those jobs you mentioned however if I get my eggs back ill send you his number.

[Gilmore]

OP, have a look at ‘the sweaty start-up’ podcast. Lots of good ideas on there for what you’re looking to do.

https://sweatystartup.com/businesses-i-love/

https://sweatystartup.com/idea-generation-101/

[Babber101]

Thanks for all comments

Have messaged Vincecj and Al Gorithium to take you up on your kind offers

[DSLiverpool]

You don’t need to buy anything or take over some crusty old enterprise - just start a business as a side hustle then as it grows you can leave to work full time.

I’ve currently got a client project that’ll do a profitable £1m Plus In year one after repaying the £20k start up funding.

Looking at trebling in q4 year 2 pro rata.

[simonw67]

DSLiverpool said:

You don’t need to buy anything or take over some crusty old enterprise - just start a business as a side hustle then as it grows you can leave to work full time.

I’ve currently got a client project that’ll do a profitable £1m Plus In year one after repaying the £20k start up funding.

Looking at trebling in q4 year 2 pro rata.

Sorry to divert the thread - nice new website on your profile, are you still running class room business like coaching? I seen another website you had?

[DSLiverpool]

simonw67 said:

Sorry to divert the thread - nice new website on your profile, are you still running class room business like coaching? I seen another website you had?

Sorry OP slight diversion, the “solutions” site is the main consultancy job, the club - theecommerce.club I’m now taking more seriously with a new designed from scratch website and YouTube channel about to launch.
I’m stopping my embryonic e-commerce projects as I just don’t have time.

[simonw67]

DSLiverpool said:

Sorry OP slight diversion, the “solutions” site is the main consultancy job, the club - theecommerce.club I’m now taking more seriously with a new designed from scratch website and YouTube channel about to launch.
I’m stopping my embryonic e-commerce projects as I just don’t have time.

Best of luck and perhaps not such a diversion all along as OP may benefit from it. I have long considered seeking the support but so hard to get going alongside a job and other items (perhaps in winter when its less pleasant to go out in evenings!)

[alfabeat]

Every 6 weeks our window cleaner appears. I work from home, have a chat and a cup of tea with him. He is in his late 60's. Has a good "round" of loyal customers in sizeable country properties. Stress free job, not particularly physical and I have worked out he must have an annual turnover of approx £65k, with only really diesel as an outgoing regular expense. Ok, he has a well kitted out van, carries his own water, hoses etc. No ladder work.

I think I'm first in line for taking over his business when he finally wants to coil up his hose for the last time.

I think I would enjoy that - until it's pissing down with rain and freezing cold :-)