Question

Topic: Branding

Start Up Domestic Construction Business Needs Name

Posted by Anonymous on 9/30/2014 at 1:47 AM ET 250 Points
My partner and I are looking to start a renovations/extensions business. He has the necessary qualifications and 10 years trade experience, I have a Dad who's looking to sell his established bathroom renovation company that has a great reputation and visible branding and great word of mouth referrals. Dad thinks he could sell his business for $100k you get yellow pages ad and the truck and that's it - no contracts, no tools/equipment. I think its a major overhead!!

My dilemma is wether we take over Dad's business and hoping the investment in branding is valued correctly, or embark on a start up with Dads guidance and help and a few ideas for business names wouldn't go astray :)

Thanks

Amaree
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RESPONSES

  • Posted by saul.dobney on 9/30/2014 at 7:27 AM Accepted
    Can't you work for your Dad, slowly adding your reputation to his? Then when the time is right buy your Dad out or he moves to become a sleeping partner taking an income from the business while you run it.
  • Posted by Jay Hamilton-Roth on 9/30/2014 at 9:10 AM Accepted
    Or, start a "division" of your Dad's company, leveraging his name to build your client list & reputation - since it's unclear if you and your partner would be doing similar or different work from your Dad.
  • Posted on 9/30/2014 at 4:18 PM Author
    Thank you. My concern is the price dad has on the business. $100k for just branding! How do I know if that's over priced. Annual turnover is about $500k
  • Posted by SteveByrneMarketing on 9/30/2014 at 6:56 PM Member
    $100k for a branded business doing $500k per year doesn't sound outrageous. Have you talked with a tax expert. You may be able to deduct some or all of the payments to your dad over x number of years. You could license the brand name and only pay a percentage after hitting certain revenue marks. There are really many creative options available for both you and your dad. I recommend you work with a business consultant who has expertise in these areas. Good luck.
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