How to start a Painting Company
11/29/2007 - by: Bill Henthorn - Director of Marketing, Acquireo.com
A freshly painted building, home or room gains a new look and appearance.
Professionals with special equipment almost always paint structures over one story in height. Homes and rooms are a different matter. The homeowner or a professional can do these. Homes with older citizens often have to have a professional come in and do the painting as they cannot do the physical work. This includes both the interior and exterior. Rented offices, apartments and homes are often painted by a painting shop that has a contract with the rental agent or the management of the unit. This is another occupation that cannot be outsourced, as the work has to be done on site. Professional crews can do the job in short order and with little mess. They know all of the shortcuts and finish the job to perfection.
Trades of all kinds are having a problem finding new help. People, who do not know the business, think there is no money to be made in the painting trade. That is a mistaken assumption that could not be further from the truth. A small business can be a true gold mine of profit when run properly and kept busy. Both the owner and the employees can do very well for themselves financially. Contracts with rental agencies and real estate management companies can provide a steady source of work. Real estate agents are often asked whom do they recommend to do the painting job on a home that is coming to market. The other big group of potential clients is the private homeowners and small office-building owners. These are very good clients that will hire out the work rather than do it themselves. The secret is to let the word out that you are available and then when you get the job, do the job right and on time. Search out the people who make the recommendations to clients and those that do the hiring for painting work. These people only want one thing from the people they hire. Do the job correctly, do it as promised and leave the job site as clean or cleaner than you found it.
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Start one up or buy one.Which is best?
A person who is thinking of going into the painting business asks this question often. The answer is it depends on the deal and the money needed to make it happen. Starting a painting shop from scratch can be done rather inexpensively and quickly. A truck or van, ladders, some scaffolding and painting tools will get a person started in the home business. The first issue when starting a business is getting customers to work for. This will take some prospecting by the owner of the new business. Clients will not start coming to a new business until a reputation starts to build. The owner is going to have to be pro-active when getting a new business off the ground. Meeting with decision makers and getting the first job is what it is all about. By doing the job right, the painting company will get more business this way. If the owner is well financed the slow build up of cash flow will be a livable situation.
Acquireo has painting businesses for sale listed by brokers and owners. It also lists business brokers that are in the area of the buyer. Brokers found on the site can be contacted to see what listings they may have in the painting shop area. Brokers will also be able to answer many of the questions potential buyers are concerned about Solid facts and figures are the bread and butter these brokers will provide to the interested buyers.
A buyer can also use the search ability of the internet to find other businesses and brokers that can be looked into. This is just another way to gather information.
Money and the deal
The potential owner of a business must have some money either to start a business or buy a business. It will probably take more money to buy a business than to start one up from the ground up. The existing business would have some clients that are repeat customers and the more of these there are the more valuable the client list. Existing contracts are also of value as long as the contracts can be assumed.
The current owner is often a source of part of the purchase money. This comes at a price in many cases, as the price of the business will be more if the owner has to loan money. This can also be part of the deal negotiating
One of the pluses of buying a successful business is the staff must be very good at what they do. If they are going to stay after the current owner leaves, then this is a big plus. Maintaining a solid work force is always important in a trade type business. Experience and work quality are factors that keep a business on top.
Conclusions
Painting and maintenance go together in the painting shop business. A company that provides quality work that is done on time and within the budget is likely to be successful and given repeat business. The need for this service is going to stay steady and increase over time. The work cannot be outsourced, as it must be done onsite. These factors are critical and will keep a business like this busy with an increasing workload. These factors will grow the business and keep the staff busy with work.
Rehab projects are another source of work and many different painting companies bid government contracts. The residential jobs and small office jobs are very profitable and not that hard to get. These jobs can be acquired by showing pictures of other jobs that the company has completed. References from satisfied customers will go along way in getting new work. Attention to detail is the key to keeping the customers happy and satisfied with the work.
If you are looking to own a painting shop or painting business,check out the listings below:
author: Bill Henthorn formerly was principal broker and owner of a resort /
commercial real estate brokerage in Honolulu which specialized in
representing sellers in transactions up to $50MM.He currently serves as the marketing director of http://www.acquireo.com