Should You Sell Your PDR Business?
Do you wonder how much your paintless dent repair business costs? Do you want to try a different craft instead of PDR? Would you ever sell your PDR shop?
Business is like gambling. The next hand could triple your earnings or it could take everything you have left. So how do you know when to fold or double down? There are a few factors to consider in before selling your PDR business.
- Why do you want to sell?
- Will they run it well?
- Do they have the skills to run the business?
- Are they the right buyer?
- Are you ready?
Why do you want to sell?
Barbara Corcoran (known from her real estate fortune and investments on Shark Tank) tweeted “If you’re going to spend 10 to 12 hours a day doing something, you better love doing it!” on June 21,2017. Her advise resonates as advice to live by. We shouldn’t waste our time and money on something that doesn’t bring some fulfillment into our lives. If you no longer enjoy owning a PDR shop and want to start something else that’s great. However, as much as its a positive change in the right direction don’t expect a high buyout. Buyers know that businesses for sale have pre-consisting issues that they can exploit for a low cost investment. Especially in paintless dent repair there’s no guarantee that the list of customers will return to the new owner. Make sure to have a specialized team in selling businesses or you could lose far more than you should.
Will they run it well?
If you’re selling the business expect at least to transition for a year. You don’t want to shock the customers who have developed years of trust associated with your face and logo. The initial training of the employees and the new owner is important but will be shaky at first since you’re both on the premises. Remember you are teaching your way but quickly you’ll feel the transfer of control to the new owner. They might make changes as they learn. Don’t let that stress you out. You have bigger and better things to worry about and now the rent and payroll of this paintless dent removal shop isn’t one of them.
Do they have the skills to run the business?
You don’t want to drive past your old plot of land that once housed one of the best pdr shops in the area and see it’s been run into the ground. Do you think this buyer has the right connections and time to run a pdr business? Whether making the PDR tools, training in PDR, or manufacturing PDR tools; this question is very important. To make even a slightly successful paintless dent removal business takes a few years. Don’t let that effort go to waste. Help keep your loyal customers happy and your devoted employees by selling your business to the right person. If they have the potential to do better than you and drive more business then they’re the right fit. Its better for you to leave happy knowing you did the best for yourself and your old business.
Are they the right buyer?
So what should you look for? You want a buyer who has experience in automotive and/or paintless dent repair. They should want to test the products, see the line, and meet the employees. The buyer should take a day or more to review the profits and loses they would be investing into. You want someone who is prepared for all kinds of challenges associated with your PDR shop. Do they know other suppliers? Are they experienced in high volume shipping? Do they want to “change” parts of the product? Answers to those questions should quickly sway your decision making process towards accepting or declining an offer. And most of all, if they present you with an offer you should be able to haggle at least once. If they give no room this is a person who will most likely completely change the business or merely wants your land to build something else. Be wary of the hard salesman, they don’t make good PDR owners.
Are you ready?
Now that you have considered the numbers when selling, consider your profit numbers after selling your PDR shop. You will no longer get the income from the shop like before. After your transition period has ended you’ll be free for other projects. However, every start up or new investment results in more cost before any profit is seen. Are you financially secure to let this business go or should you be focusing more on it to increase your income? Even if you’re emotionally ready you might not be financially ready to sell. Establish a cushion of money that will sustain your current living situation for at least a year. Selling the company should switch your stress from a running a business to stress trying to put food on the table.
Should you sell your PDR Business?
Yes, if you’ve read the do’s and don’ts here and see it as a smart choice.
No, if you skimmed this blog and have only $100 in savings. Sell smart so you can invest better in your next venture.