Featured Business: Septic & Shelter Services

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Featured Business: Septic & Shelter Services

Welcome to this week’s highlight in SMB Power Play: a well-established septic tank service company purchased and operated by the current owner since 2007. Known for its robust service portfolio including septic tank pumping, repairs, and installation, along with porta potty rentals and storm shelter installations, this business has become a staple in the community for its reliable and essential services. 

TL;DR

• Consistent Financial Performance: Annual revenue approximates $2 million, demonstrating stable financial health.

• Comprehensive Service Offering: Ranges from septic services to emergency storm shelters, ensuring multiple revenue streams.

• Experienced Leadership: The owner, ready to retire, is open to staying on for 1-2 years in a consulting capacity to ensure a smooth transition.

• Growth and Sale Prospects: Steady customer base with 5-15 new customers per month; open to creative financing options for sale.

Financials at a Glance

Revenue Growth: Maintained around $2 million annually over the past three years, showing resilience and steady demand for services.

Net Earnings: Uncertain, reflecting an area for potential improvement through more detailed financial management or operational efficiencies.

Operational Insights

Business Model: Robust and diversified, providing essential services that ensure steady cash flow and customer retention.

Team Structure: Consists of 10 full-time employees, with a mix of office staff and field workers, supported by one part-time employee, enabling operational efficiency and service excellence.

An existing employee is capable of managing the company upon the current owner's departure. A viable strategy might involve offering this employee a share of the profits or equity, enabling them to effectively operate the business with direct oversight. This approach ensures continuity and vested interest in the company's success.

SWOT Analysis

Strengths: Exceptional service quality and customer satisfaction, strong reputation backed by multiple service awards, and a comprehensive range of services.

Weaknesses: Recruitment and retention of labor due to the demanding nature of the jobs.

Opportunities: Introduce new services or expand existing ones to increase revenue streams.

Threats: Economic sensitivity, though mitigated by the essential nature of services offered.

Future Prospects and Strategy

Growth Potential: By capitalizing on its strong reputation and expanding service lines, the business has significant potential for further growth.

Sale Considerations: The owner is open to creative financing options, making this an attractive opportunity for buyers looking for flexible payment arrangements.

Power Play

This week’s Power Play highlights this company for its comprehensive service range and strong community ties. Its robust operational model and stable financial performance, combined with the owner’s flexibility on sale terms, make it a prime opportunity for those looking to enter a necessary service industry.

This is a good fit for you if…

1. You Value Established Customer Loyalty: Ideal for investors seeking a business with a solid customer base and proven market demand.

2. Interested in a Diverse Service Offering: The company’s range of services from septic to safety shelters provides multiple revenue streams.

3. Looking for a Business with Expansion Potential: Significant opportunities for growth through service expansion or enhanced marketing strategies.

4. Prefer Hands-on Transition Support: The current owner’s willingness to assist post-sale ensures a smooth transition and retention of operational knowledge. As well, a current employee's ability to step up and help run the company is available.

5. Seeking a Business with Steady Revenue: With consistent yearly revenue and a stable customer influx, this business promises ongoing profitability.

Interested in this deal?

Contact [email protected] to learn more!