End of an era for my signage business?
Discussion
After almost two decades working in the signage and vehicle graphics industry in the Midlands, I’ve recently found myself in a slightly unusual situation.
Life has taken me in a different direction and I’ve relocated abroad, which means I’ve gradually stepped away from the day to day running of the business I started back in 2015.
Over the years the brand became fairly well known locally. We worked on a wide range of architectural signage and vehicle graphics projects and still hold one of the highest numbers of Google reviews in the area. The work has also been featured in industry magazines on a fairly regular basis, particularly around some of the more unusual three dimensional signage projects we produced using alternative materials.
Even recently we were invited to tender for a framework worth close to four million pounds, which we ultimately lost on price, but it did highlight that opportunities at that level still seem to come our way.
These days the company mostly operates as design, consultancy and project management using trusted suppliers rather than running a full production setup ourselves, which in many ways makes it quite a portable model.
What really remains is the brand itself, the reputation built over the years, two registered trademarks, the domains and social media presence as well as long standing relationships with suppliers and industry contacts.
Because I’m no longer based in the UK I’ve been wondering what the sensible thing to do with it is.
Part of me feels it would be a shame to simply let something fade away after all those years when someone else in the industry might actually be able to pick it up and continue building on it.
On the other hand perhaps the right thing to do is simply close that chapter and move on.
Curious what people here think.
Has anyone here ever taken over an existing small trade brand or business rather than starting from scratch?
What are your thoughts?
Life has taken me in a different direction and I’ve relocated abroad, which means I’ve gradually stepped away from the day to day running of the business I started back in 2015.
Over the years the brand became fairly well known locally. We worked on a wide range of architectural signage and vehicle graphics projects and still hold one of the highest numbers of Google reviews in the area. The work has also been featured in industry magazines on a fairly regular basis, particularly around some of the more unusual three dimensional signage projects we produced using alternative materials.
Even recently we were invited to tender for a framework worth close to four million pounds, which we ultimately lost on price, but it did highlight that opportunities at that level still seem to come our way.
These days the company mostly operates as design, consultancy and project management using trusted suppliers rather than running a full production setup ourselves, which in many ways makes it quite a portable model.
What really remains is the brand itself, the reputation built over the years, two registered trademarks, the domains and social media presence as well as long standing relationships with suppliers and industry contacts.
Because I’m no longer based in the UK I’ve been wondering what the sensible thing to do with it is.
Part of me feels it would be a shame to simply let something fade away after all those years when someone else in the industry might actually be able to pick it up and continue building on it.
On the other hand perhaps the right thing to do is simply close that chapter and move on.
Curious what people here think.
Has anyone here ever taken over an existing small trade brand or business rather than starting from scratch?
What are your thoughts?
Until fairly recently we had a designer working from home who would also go out and do site surveys when needed, but she has since moved on.
At the moment I’m still pricing jobs and speaking with clients remotely from here. On the production side we have an arrangement with our former production manager who now works for a company nearby. They handle manufacturing, surveys and installations for us, including using a branded van and team when needed.
We also have a similar arrangement with another business we’ve worked with for years, so the operational side is still covered through those relationships.
That said, things naturally slow down when you’re not physically there meeting clients face to face and being present locally, which is really the part of the job that always drove most of the work.
At the moment I’m still pricing jobs and speaking with clients remotely from here. On the production side we have an arrangement with our former production manager who now works for a company nearby. They handle manufacturing, surveys and installations for us, including using a branded van and team when needed.
We also have a similar arrangement with another business we’ve worked with for years, so the operational side is still covered through those relationships.
That said, things naturally slow down when you’re not physically there meeting clients face to face and being present locally, which is really the part of the job that always drove most of the work.
I did reply to your previous post on this which I see you've now deleted. I presume you want to keep your powder dry for now which is fair enough but get back to me if you want to.
What you have is what sounds like a nice solid little business but the way it does business, the way it's set up and the time operating makes it a difficult entity to sell in the normal way. The figure you mentioned on your previous post that you'd be looking for is quite low. The legals and due diligence would likely cost more than the asking price. Any purchase would be a case of someone or a company just taking a punt. But the value of that punt is equitable to them investing the same in building their existing business or starting something from scratch (which would be easier to do if you were no longer operating) so you need to consider what value you can offer that makes acquiring your business the more attractive option.
You mention that you have a strong 'brand'. However, it's very common for business owners to believe their brand is bigger than it actually is (I do this all the time and have to constantly check myself for it). At this level of business, the strongest brand component is you and with you gone, so is the brand. Any tangible financial value allocated to the brand is entirely arbitrary and the result of the seller and buyer agreeing what that value is - which is hardly ever the case.
But it would be a shame for you to simply switch off what you have built.
You could look at brining in a Partner / Director who knows how to win these types of bids. You could then establish a proper exit pathway, with either the Partner agreeing to take over or both focused on a build-and-sell strategy. Don't look at this as giving something away. Get this right and your 50% could be worth significantly more than your current 100%.
This of course requires that you remain involved for a period of time longer than you might have wished. Personal circumstances count for much in this type of thinking and there's no shame in just walking away - either just shutting it down or pitching as a punt for someone.
Good luck!
What you have is what sounds like a nice solid little business but the way it does business, the way it's set up and the time operating makes it a difficult entity to sell in the normal way. The figure you mentioned on your previous post that you'd be looking for is quite low. The legals and due diligence would likely cost more than the asking price. Any purchase would be a case of someone or a company just taking a punt. But the value of that punt is equitable to them investing the same in building their existing business or starting something from scratch (which would be easier to do if you were no longer operating) so you need to consider what value you can offer that makes acquiring your business the more attractive option.
You mention that you have a strong 'brand'. However, it's very common for business owners to believe their brand is bigger than it actually is (I do this all the time and have to constantly check myself for it). At this level of business, the strongest brand component is you and with you gone, so is the brand. Any tangible financial value allocated to the brand is entirely arbitrary and the result of the seller and buyer agreeing what that value is - which is hardly ever the case.
But it would be a shame for you to simply switch off what you have built.
sickrabbit said:
Even recently we were invited to tender for a framework worth close to four million pounds, which we ultimately lost on price, but it did highlight that opportunities at that level still seem to come our way.
Contracts like these change everything. Getting yourself on supplier frameworks and winning tendered contracts adds enormous value you to your business. You go from a business that does something to one that has something. Buyers would be acquiring the business and clients and contracts. You could look at brining in a Partner / Director who knows how to win these types of bids. You could then establish a proper exit pathway, with either the Partner agreeing to take over or both focused on a build-and-sell strategy. Don't look at this as giving something away. Get this right and your 50% could be worth significantly more than your current 100%.
This of course requires that you remain involved for a period of time longer than you might have wished. Personal circumstances count for much in this type of thinking and there's no shame in just walking away - either just shutting it down or pitching as a punt for someone.
Good luck!
I've never run a business so feel free to ignore this; my take us that there are customers, employees, and suppliers also involved. Folding the business hurts them all, whereas finding someone to carry it on keeps value in the economy and people in jobs.
I wouldn't go so far as to suggest any moral obligation, but it seems the kinder approach than just folding it.
I wouldn't go so far as to suggest any moral obligation, but it seems the kinder approach than just folding it.
StevieBee said:
You mention that you have a strong 'brand'. However, it's very common for business owners to believe their brand is bigger than it actually is (I do this all the time and have to constantly check myself for it). At this level of business, the strongest brand component is you and with you gone, so is the brand.
My thoughts are much the same. It's not obvious what there is to attract ££ from a buyer.Does the the name itself guarantee a certain level of orders, new customers or repeat business? Does the name enable higher prices and better margin than competitors?
Sporky said:
I've never run a business so feel free to ignore this; my take us that there are customers, employees, and suppliers also involved. Folding the business hurts them all, whereas finding someone to carry it on keeps value in the economy and people in jobs.
I wouldn't go so far as to suggest any moral obligation, but it seems the kinder approach than just folding it.
And this is what I'm trying to do I wouldn't go so far as to suggest any moral obligation, but it seems the kinder approach than just folding it.
StevieBee said:
I did reply to your previous post on this which I see you've now deleted. I presume you want to keep your powder dry for now which is fair enough but get back to me if you want to.
Thank you for taking the time to write such a thoughtful reply – I appreciate it.The previous thread was actually removed by the admins rather than deleted by me.
You’re absolutely right about one thing – at this scale the “brand” is very closely tied to the person behind it. I’ve never really tried to build something corporate. Most of the work has always come through reputation, repeat clients and word of mouth.
I’m also the first to admit that sales has never been my strong side. I’m much more of a maker and technically minded person. Design, engineering, figuring out how to build things and deliver projects – that’s where I naturally sit. That approach has actually secured quite a lot of work over the years, but it also limits how big the business can grow.
With the right partner handling the commercial side and me focusing on the technical and delivery side, I do think the model could work much better.
The framework tender we recently lost is a funny example. We’ve actually been doing work for that same client for nearly ten years without ever being on their official framework. My guess is that we’ll probably continue doing bits of work for them anyway.
At the moment I’m just trying to work out what the sensible next step is – whether that’s bringing someone in, passing the brand on, or simply letting the project come to a natural end after two decades.
I agree with you though – it would be a shame to simply switch it off.
sickrabbit said:
At the moment I m still pricing jobs and speaking with clients remotely from here. On the production side we have an arrangement with our former production manager who now works for a company nearby. They handle manufacturing, surveys and installations for us, including using a branded van and team when needed.
We also have a similar arrangement with another business we ve worked with for years, so the operational side is still covered through those relationships.
Can you sell it to one of these companies or to the former production manager?We also have a similar arrangement with another business we ve worked with for years, so the operational side is still covered through those relationships.
Muzzer79 said:
Can you sell it to one of these companies or to the former production manager?
Production manager is now happily employed by another company which operates in a completely different corner of the industry. He was never really the entrepreneurial type and his current employers, although they have machinery capable of producing a lot of signage elements, have no interest in moving into that space.The other company we occasionally work with is essentially a small outfit – an installer on the tools with a plotter. Good people and reliable, but not really in a position financially to take on something like this.
So at the moment neither of those options feels like a natural route.
sickrabbit said:
Muzzer79 said:
Can you sell it to one of these companies or to the former production manager?
Production manager is now happily employed by another company which operates in a completely different corner of the industry. He was never really the entrepreneurial type and his current employers, although they have machinery capable of producing a lot of signage elements, have no interest in moving into that space.The other company we occasionally work with is essentially a small outfit an installer on the tools with a plotter. Good people and reliable, but not really in a position financially to take on something like this.
So at the moment neither of those options feels like a natural route.
In what way do you mean they couldn't financially take it on? Would you not be basically offering them the company for zero cost upfront and then agree taking a profit towards the sale price of the business? A lot of retirement type sales are structured this way so no money is needed up front by the buyer.
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