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Busy Denver Outdoor Lighting Franchise, Designs, Sells and Installs High Quality Lighting for Commercial and Residential Properties, 45% Profit Margin

ServiceFor Sale in Denver, CO

Financial & Assets Details

$448,000
$196,000
$24,000
$5,000

About the Business

Yes
Yes
2010
2
Yes

Business Description

This business designs, sells, and installs high quality, low-voltage outdoor lighting for high-end residential homes and commercial properties. Four years ago, the business added holiday lights and decorations to their products and services, which has become a highly profitable endeavor with potential for massive growth. It has a 45% profit margin that partners with a well-run and supportive franchise. No professional licenses for the owner or for employees is required to operate this business. The outdoor lighting business is in a position for extraordinary growth in the exponentially expanding Metro Denver area.

The owner bought this franchise 10-years ago. He is selling because he has decided to move out of state. He believes in the business concept and relationship with the franchise and will open the same franchise in his new location out of state.

This business is a franchise that offers new franchisees a one week training course. The franchisor provides training in the technical knowledge and products required to install and maintain low-voltage lighting systems. The new owner will also learn the principals of outdoor lighting design, marketing the business, and the sales process. This franchise comes with a wrapped ProMaster van and the basic equipment & tools required to start installing and servicing low-voltage lighting systems from the first day of ownership.
This business’ adjusted trailing 12-month's earnings through September 30th were 196K from 448K in revenues. It is priced at less than 2.25 times the trailing 12-month's earning at only 435K. This business qualifies for an SBA bank loan.

This company has a lot of things that buyers love: Recurring revenue from referrals and an annual maintenance program for existing customers; franchise manufactured and warrantied products; and potential add on sales areas like water features, landscaping, etc. The seasonality of this business allows the owner to take approximately 2-months off each year from mid-December to mid-February where they will have the opportunity to ski or get warm somewhere else. The Franchisor has recently added outdoor audio products that is easy to upsell during the outdoor lighting sales process. Plus, it is encouraged partnerships with hardscaping, water feature, and landscaping companies in order to receive profit sharing and/or referral fees.

There are a lot of special things about this opportunity, but nothing more important than the turnkey nature of this business. Everything is in place from a custom wrapped van and basic installation tools to marketing and sales products to easily accessed and economical products. Training in design, sales, and and the technical elements of low-voltage system installation and service is provided as part of welcoming new owners and employees to the family. The outdoor lighting design and installation model does not require licensed employees or earning “masters” qualifications within the industry like some specialty construction companies.

For Sale:

High End Outdoor Lighting and Audio Design, Sales, and Installation Franchise

He has owned this franchise for 10-years and established with a great reputation with a 4.7 stars Google Rating with 38 reviews, 5 star Yelp rating, and has an A+ BBB rating which is very valuable to a new owner who wants to grow this company. He also has a marketing page with a link that goes to his website on Facebook.

The perfect time to buy this company is in early January as it will give the new owner time to learn the business, add products, and prepare for success in 2021.

The business is operated from the seller's house in south Denver but can be located anywhere in the Metro Denver area. He maintains a large, low cost storage space that also acts as a place for staging employees every morning in preparing for the work of the day. This business is very inexpensive to run and one of the many reasons this business has such a high profit margin.

He typically has one to four employees depending on the time of year. He saves on payroll by only keeping his employees when he needs them. He advertises for employees through Indeed and other job websites. Employees are typically paid 20/hour, which helps to hire quality employees each Spring. This is another reason he has such a high profit margin. The work is easy to learn since the owner is the only one doing the bidding, sales, and designing outdoor lighting systems. He marks up his service calls to 125/hour and 90/hour, which is a more than 300% markup for labor. This labor charge is much higher than HVAC, plumbing, electrical, and virtually all other companies that mark up their labor costs. He enjoys the work so he does not currently have a key employee who can also do bidding and selling. He believes that the business can easily grow to support hiring employees that can do the sales and design job if the new owner wants to focus on growth at some point. Other franchises have employees who’s sole job is sales and design, so the model is in place and replicable.

Their marketing consists of a great website, monthly SEO, Direct Mail, Home Mag, and sometimes the home show. This is the only franchise I can remember where he has the franchise exclusivity to the whole front range. He has also added holiday lighting and displays to the products and services offered. This addition has been growing nicely with many new referrals each year. Holiday lighting provides an extremely high margin annually recurring revenue, which comes in the outdoor lighting off season. He has fun with it. The holiday brand he represents is Reinders. He is currently doing about 50K which he believes will quickly be more than 100K in the next year or two. He also is up to 1,200 customers in his data base who he can email and market to. He also believes that the new owner can set up in northern Denver or anywhere else on the front range to grow. He states in the video that he is doing around 500K and that the business can easily do 800K. He just hasn’t worked as hard as he could have and takes several vacations a year with his family including one every summer.

I like simple businesses that won’t change the day after the closing and this is certainly one based on its franchised turn key approach to marketing, design, and installation. I also like that he makes what he does in 10 months and the buyer will get most of January and all of February off each year. Those are the worst two months of weather in Denver and it is the best 2 months to travel or ski.
The price of the business is priced to sell for only 435,000 plus approximately 5K in inventory. This is priced at less than 2.25 times the trailing 12-months earnings. There will be a 5K franchise transfer fee and a mandatory one week training class.

Please call me or email and I will get your questions answered and set up a call or meeting with the owner.

Thank you for your consideration,

Jeff Chapman Eisnaugle
Company Broker Group, LLC
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jce@companybroker.com
jeff@businessbrokercolorado.com

This is prepared by Business Broker Colorado LLC with Company Broker Group LLC being the managing broker with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Business Broker Colorado LLC and Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Growth & Expansion

Their marketing consists of a great website, monthly SEO, Direct Mail, Home Mag, and sometimes the home show. This is the only franchise I can remember where he has the franchise exclusivity to the whole front range. He has also added holiday lighting and displays to the products and services offered. This addition has been growing nicely with many new referrals each year. Holiday lighting provides an extremely high margin annually recurring revenue, which comes in the outdoor lighting off season. He has fun with it. The holiday brand he represents is Reinders. He is currently doing about 50K which he believes will quickly be more than 100K in the next year or two. He also is up to 1,200 customers in his data base who he can email and market to. He also believes that the new owner can set up in northern Denver or anywhere else on the front range to grow. He states in the video that he is doing around 500K and that the business can easily do 800K. He just hasn’t worked as hard as he could have and takes several vacations a year with his family including one every summer.

Seller Financing

Owner will carry 10%

Market Competition:

This business designs, sells, and installs high quality, low-voltage outdoor lighting for high-end residential homes and commercial properties. Four years ago, the business added holiday lights and decorations to their products and services, which has become a highly profitable endeavor with potential for massive growth. It has a 45% profit margin that partners with a well-run and supportive franchise. No professional licenses for the owner or for employees is required to operate this business. The outdoor lighting business is in a position for extraordinary growth in the exponentially expanding Metro Denver area.

Location Details:

The business is operated from the seller's house in south Denver but can be located anywhere in the Metro Denver area. He maintains a large, low cost storage space that also acts as a place for staging employees every morning in preparing for the work of the day. This business is very inexpensive to run and one of the many reasons this business has such a high profit margin.

Support & Training

The Franchisor will provide on going support

Reason for Selling:

The owner is moving out of state

Listing ID: 24307

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