Where to list business for sale to small shops or at home machinist?

WCRiot · Jul 29, 2018

Hey all
I've been part of the forum for many years but lost access to the email address that the original account was setup with.

I have a small business that I am looking to sell. I am looking to sell the entire product line, components and final inventory, tooling and even the machines if needed. The business generates over $50,000 in revenue and operates at 70% profit with overhead factored in. When I ran the business alone, it was 95% profit

I have listed the business on: BizBuySell, Bizsale and occasionally Craigslist. I've had interest but no one really serious. For the big companies i don't think it's enough revenue increase for them to care.

Do you have suggestions or places I can list the business for sale to market to small machine shops or even the machinist that works out of this garage? This is a great business and runs itself. I hate to just walk away from it.

Thanks for any help in advice.

wheelieking71 · Jul 29, 2018

WCRiot said:
Hey all
I've been part of the forum for many years but lost access to the email address that the original account was setup with.

I have a small business that I am looking to sell. I am looking to sell the entire product line, components and final inventory, tooling and even the machines if needed. The business generates over $50,000 in revenue and operates at 70% profit with overhead factored in. When I ran the business alone, it was 95% profit

I have listed the business on: BizBuySell, Bizsale and occasionally Craigslist. I've had interest but no one really serious. For the big companies i don't think it's enough revenue increase for them to care.

Do you have suggestions or places I can list the business for sale to market to small machine shops or even the machinist that works out of this garage? This is a great business and runs itself. I hate to just walk away from it.

Thanks for any help in advice.

If it is so great, why do you want out? Serious question.
From the outside looking in, at my mess, it would appear I have the world by the balls.
But, I want out so bad its not funny. So, I may get it.

Is that $50k number yearly? If so, that isn't very much.

Matt@RFR · Jul 29, 2018

What was your old name here?

Where are you?

Have you had the business valuated by a third party? Or is your asking price what you think it's worth?

I hope that $50k is per month, not per year. We used to invoice close to $40k per month with one machine in my garage as a job shop...

Fish On · Jul 30, 2018

wheelieking71 said:
If it is so great, why do you want out? Serious question.
From the outside looking in, at my mess, it would appear I have the world by the balls.
But, I want out so bad its not funny. So, I may get it.

Is that $50k number yearly? If so, that isn't very much.

Lemme guess, 5 years ago, you pretty much thought you wanted to end up right where you currently are?

Joe Miranda · Jul 30, 2018

WCRiot said:
Hey all
I've been part of the forum for many years but lost access to the email address that the original account was setup with.

I have a small business that I am looking to sell. I am looking to sell the entire product line, components and final inventory, tooling and even the machines if needed. The business generates over $50,000 in revenue and operates at 70% profit with overhead factored in. When I ran the business alone, it was 95% profit

I have listed the business on: BizBuySell, Bizsale and occasionally Craigslist. I've had interest but no one really serious. For the big companies i don't think it's enough revenue increase for them to care.

Do you have suggestions or places I can list the business for sale to market to small machine shops or even the machinist that works out of this garage? This is a great business and runs itself. I hate to just walk away from it.

Thanks for any help in advice.

I may be interested. I PM'd you.

michiganbuck · Jul 30, 2018

I don’t think you should be criticized for asking about disposing a $50K garage shop. $50k on the side is good money. Plenty of guys have a hobby or existing small shop who might consider such.

But your post could include what it is. Perhaps lathe and mill work shop/ Has a product/ bidding on local work as a jobber/ average shop rate..

Selling one's machines is tough and machines with work might sell quicker and perhaps at a higher price.

I do some grinding by UPS..My time is too valuable to pick-up and deliver. Income now is less than $50K but don't need income.

My work could make 100 to 150K at 40 hours if I wanted work.

So I would not knock a guy with a 50k garage shop business.

gustafson · Jul 30, 2018

michiganbuck said:
I don’t think you should be criticized for asking about disposing a $50K garage shop. $50k on the side is good money. Plenty of guys have a hobby or existing small shop who might consider such.

But your post could include what it is. Perhaps lathe and mill work shop/ Has a product/ bidding on local work as a jobber/ average shop rate..

Selling one's machines is tough and machines with work might sell quicker and perhaps at a higher price.

I do some grinding by UPS..My time is too valuable to pick-up and deliver. Income now is less than $50K but don't need income.

My work could make 100 to 150K at 40 hours if I wanted work.

So I would not knock a guy with a 50k garage shop business.

He said revenue

50k in revenue is not really much money

Whysosharp · Jul 30, 2018

Dependent on the product line that’s carried a purchaser could stand to make more if they have better equipment or a more efficient manner of production. but I agree 50k isn’t much to pull in in a year

michiganbuck · Jul 30, 2018

$50K would leave $40/41K after taxes so for a 2000 year that is about $20 / $20.50 an hour..

If the shop runs a a $40 rate then it is way less hours..perhaps 4 hours a day for 5 days.

gustafson · Jul 30, 2018

Yah mean after paying whatever it is he wants to sell it for?
And putting it somewhere?

And paying for whatever material there is?
And paying for electricity?
And whatever ongoing advertising or whatever is needed?

Maybe a small business runs 20 percent of revenue

Now he has not been specific, maybe I misunderstand his terminology

Comatose · Jul 30, 2018

Assuming you mean it grosses an annual 50k, and now that he isn't running it by himself it makes a 70% gross margin, that means that all up, including ordering, sales, support machine time, machinist time this requires fewer than 300 hours per year in total engagement, correct?

If so, that's not saleable as a business, it is a product. If not, then your 70% gross margin number is off.

The problem with things like this is they tend to be very niche. Usually hobby products. There's enough meat on the bone for someone to do it as a labor of love, and the market is protected-ish because there's not enough global demand to support two competitors, so the first mover can have it as long as he wants it. But they tend to require more support and hand-holding time for the customers than the revenue really justifies. So you have to be in the space as a hobby and derive value and enjoyment from being "the guy."

The only people you can sell a business like that to are other people in the hobby, or else a competitor who has a similar but not overlapping product offering. Most often, the business and the product are just abandoned when the guy gets tired of the hobby and moves on.

How close is this guess?

michiganbuck · Jul 30, 2018

Garage business might pay better than one might think..I did a 2 hour job today ,gross $150, UPS shipping about $15, wheel usage perhaps 50 cents because I bought the wheel at auction. A 46 I AO Cabrurndrum 7 x 1 1/4 to grind perhaps .05 off two sides of a 3.5 diameter to a .007 to .010 radius edge.

Could have shipped the entire job last week for $20 in one box but had to go out of town with the Boy Scouts..

if I had used a new wheel usage might have been $3

Mcgyver · Jul 30, 2018

It could be a business that's an adjunct to a bigger business, something he puts an afternoon a week into. I didn't notice anything that would make you think it had to be his only commercial enterprise....or maybe it is, part time, and would a nice little tuck in for someone already carrying the overhead but with some free cycles.

There is nothing about calling it a business that means it has to even be a separate legal entity. Larger firms sell divisions all the time - its how I bought my business.

HuFlungDung · Jul 30, 2018

There have been a few guys on here lately talking about starting up a business with barely an idea of what they will be making. I don't know why they wouldn't take a look at some small product line as part of the fill in while they get the ball rolling. Not every damn idea is going to generate millions of dollars per year, and it doesn't have to, to be worth doing.

michiganbuck · Jul 30, 2018

Still it is about what the part and how much the price ..Many businesses sell for 4 times gross or net? likely the machines and expected revenues would have to be considered..as well as the location. move the location or some one near enough to be interested.

Oxnard California is very nice but some parts of the state are on fire.

gustafson · Jul 31, 2018

HuFlungDung said:
There have been a few guys on here lately talking about starting up a business with barely an idea of what they will be making. I don't know why they wouldn't take a look at some small product line as part of the fill in while they get the ball rolling. Not every damn idea is going to generate millions of dollars per year, and it doesn't have to, to be worth doing.

There is a huge difference between 50k and 1mil

50k gross will not support me here, will not allow me to hire a skilled person to do it, or rent a place to do it in.

if it is 50k x.7[as stated] that is 35k

and you have not paid for the business yet.

so is someone going to pay for the honor of needing a job cause their business doesn't make enough to support them?

If you are retired and fooling around in your paid off house with your SS and 401k coming in, maybe.

There is subsistence, and there is business.

Business is about making money, not just surviving

When you really cannot pay someone to do it, is it really a viable business?

The number to do that is far lower than a mill.

michiganbuck · Jul 31, 2018

Very likely I and many here have the equipment and product ideas to manufacture some ideas..and likely might make $50k with making a simple tool, part or fixture.

Many garage shop business are just a home made job and likely hard to sell for much more that the value of the machines. many just go to stop and then some other guy may fill the product need.

Many things are off patent and open to anybody making an old item and many things are low in need so bigger outfits don't bother..

Possible the OPs product could be made by many here and divulging the part might just set another guy to making it.

HuFlungDung · Jul 31, 2018

Just because he wants to 'sell the business' doesn't mean that it has to be self supporting. Hell, I do half a dozen different things in rotation on an annual basis that keeps me in business. Only one of those half dozen projects gets near $50K in a good year.

Anybody who thinks he can make just one widget and stay in business is dreaming.

broke · Jul 31, 2018

Matt@RFR said:
What was your old name here?

Where are you?

Have you had the business valuated by a third party? Or is your asking price what you think it's worth?

I hope that $50k is per month, not per year. We used to invoice close to $40k per month with one machine in my garage as a job shop...

You were pulling in 480k a year with a single machine in your garage? Maybe I'm not doing as well as I thought...

Matt@RFR · Jul 31, 2018

yoke said:
You were pulling in 480k a year with a single machine in your garage? Maybe I'm not doing as well as I thought...

Yes, and it sounds great until you do taxes as a sole proprietor with that kind of income... That particular work is gone now, but we almost never did less than $25-$30k / month in the garage.

Where to list business for sale to small shops or at home machinist?

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