Residential Christmas Lighting Design & Installation
A Whole Year's Income in Just Six Months! Turn-Key, Established Customers.
(Seller's Discretionary Earnings)
included in asking price
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Four months of work for a year’s worth of income….
With over 10 years serving this affluent community in the San Francisco Bay Metro Area, the business serves mostly individual family homes with complete outdoor decorating and lighting designs and installation. Typically, the work “year” starts in October and ends in January.
The company lights trees and shrubbery, outlines the home, and designs, plans, and installs any decorating scheme the homeowner may like. The business procures all the lights and decorative items, installs, services, and removes them, and stores everything for the next season. Instant Christmas at the flip of a switch!
The business could easily double or triple its sales just with existing demand. New customers are obtained by word-of-mouth, a strong web presence, and a nationally-advertised referral service. But, there is no pro-active marketing—the owner is actually turning away some new customers to avoid the expansion that a new owner may very well want to pursue. Because of economies of scale, aggressive marketing to current customers’ neighbors could increase sales with a disproportionately higher increase in profits.
Exposure on the web is two-fold: the national referral service and the company’s own comprehensive web site. Both a nationally-advertised and a local “iconic” toll-free numbers receive calls from prospects and customers.
The owner works full-time in the business for about four months of the year, with the assistance of 3-6 temporary seasonal employees. Previous years’ workers are often available for the next season. Workers are employees with proper paperwork and workers’ comp insurance.
The company has 175 to 200 customers per season, with more than 125 being regularly recurring clients. The current geographic market includes a 15-mile radius from the company headquarters. While the national referral service has a limited area, the owners of this business have no geographic limits, except for practical considerations of travel distances.
Annual sales are in the $170,000 range, with net income to the owner-operator of about $124,000. The fixed assets include the materials for over 200 home installations, ladders and tools, a commercial van, and a box truck with advertising graphics, all with a replacement cost of at least $120,000.
The company shares a rental space with another business; the new owner could continue to rent the approximate 1,000 sq feet, including a garage and space to store all lights and materials, for $1,000/month.
The transaction will be for the purchase of the entire business—both tangible and intangible assets, including all decorating inventory, vehicles, tools, web sites, phone numbers, customer database, but not including accounts receivable, accounts payable, cash-on-hand, and rental deposit. The asking price is $299,900 (3x net income; 2.1x gross revenue). Seller will provide all necessary support for a seamless and easy transition.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made NO independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.
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- Alameda County, California
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