I want to sell my small janitorial business. In 2 years we've grown it into a decent success with annual revenue of about $25,000. My profit margin is about 60%. I know of someone who will almost certainly want to buy, but I have no idea how to do it, and most importantly, what the business is worth. Any tips? Obviously I want to get this all in order before I contact him.
It's a small commercial janitorial service. Very small supply inventory (we buy only as needed, and bill back the client for the actual cost), supplies are maybe $250 worth of mops, buckets, etc. No employees. My wife does the paper work, I do the physical work. Not sure what other info would be needed but I'm happy to clarify anything if needed. Thanks.
Edit: I should clarify that all clients that create that annual revenue are under contract for recurring service. So it's more or less guaranteed income. I say more or less because the contract allows for a 30 day termination from either party.