Service Businesses in Florida
A service business creates value by selling intangible skills, whereas a retail business creates value by selling tangible products. The difference is key because a service business has no need to carry inventory and does not necessarily need a retail location (with much higher rents). Some service businesses (such as beauty salons) may also sell retail products, but are still considered service-oriented businesses. Let’s explore which service businesses in Florida make the best business purchases.
Healthcare Businesses in Florida
- By the year 2030, nearly one-third of the population in Florida will be aged 60 and older, making seniors the fastest growing demographic group.
- For this reason alone, many buyers are interested in purchasing healthcare companies in Florida.
- Examples of good healthcare companies to purchase include home healthcare companies, nurse registries, physical therapy center clinics, medical staffing businesses, and veterinarian offices.
- Medical practitioners such as physicians or dentists also sell their practices, but a buyer of such a business would almost certainly need to be a physical or dentist for the deal to make sense.
- There is always demand for quality healthcare whether our economy goes into recession or not.
- This high demand along with our growing senior population in Florida, generally make healthcare companies excellent service businesses to purchase in Florida.
- Buyers should beware, however, regulatory and licensing issues need to be addressed with the help of a competent business broker before deciding to purchase a healthcare company.
HVAC Businesses in Florida
Heating, ventilation, and air condition (HVAC) companies are service businesses but still typically sell products (such as new air conditioning units). Primarily, HVAC companies sell repair and labor services. After all, nobody will buy an A/C unit from a company that can not install it properly and service the unit for many years to come. The unusually beneficial nature of owning an HVAC company is the fact that people need (rather than simply want) proper air conditioning in Florida. Most people will immediately fix or replace their A/C unit because the weather here is simply too hot to wait very long. Members of the public will also not frequent commercial establishments without proper air conditioning. Normally, buyers of HVAC companies are familiar with HVAC repair and have a Florida HVAC license. It is possible, however, that an unlicensed buyer may still buy an HVAC company and have the business qualified by a licensed HVAC professional.
Plumbing Business in Florida
Like any good service business, a plumbing company services a critical need for its customers. It is quite unsafe and unsanitary to have one’s bathroom or kitchen fixtures not in working order. Many plumbing companies also are hired by general contractors for major remodeling or new residential construction jobs. Along with regular service calls, these remodeling and construction jobs can make a plumbing business very lucrative. Many buyers of plumbing companies may be fearful that the seller could (after the sale) steal their customers or compete with their business by opening another plumbing company. For this reason, the non-compete agreement is of critical importance to protect the buyer and ensure the seller is aware of what is not permitted after the sale.
Pest Control Business in Florida
Pest control companies generally sell at very high valuations and are highly sought after. In South Florida, the prevalence of insects and rodents makes pest control companies a much needed service by many residents and commercial establishments. The cost of chemicals and treatment items are generally quite low compared to the overall service charge faced by the customer. This means the margins for the pest control company are usually very high. Many pest control companies are owner-operated without any other employees. In such a case, it is important to remember that the owner’s salary is considered an owner benefit, which must be included in the company’s valuation.
Landscape/Pool Business in Florida
- In South Florida, landscaping and pool companies are two of the most common service businesses.
- The hot and humid weather prompts many homeowners to have a pool.
- Because of the same hot and humid weather, many homeowners do not want to take of their own landscaping.
- Both landscaping and pool companies have service routes whereby the customer receives regular visits and pays a fixed amount per month.
- The recurring monthly payments provides security for many buyers in the sense that they know what their regular income of the business will be after the sale.
- Typically the most critical part of selling landscape or pool companies is providing a smooth transition so that the customers will continue service with the buyer after the sale.
- A professional business broker will help the transition by ensuring that a well thought out transition plan is implemented and agreed upon before the sale.
Beauty Salons in Florida
Many types of beauty salons (which primarily sell the time and skill of their stylists) and spas are for sale in South Florida. Salons are generally considered recession-resistant business because well…women (and men!) always want to look their best. Most salons are owner-operated where the owner actively works in the salon as a stylist. A buyer of a salon must separate the income generated by the owner from the income generated by the employees of the salon. There is no guarantee that a salons’ customers will stay if their preferred stylist no longer works in the salon. Thus a buyer must carefully consider how the sales and profits of the salon will compare with and without the owner’s active involvement.
The mentioned service companies along with many others may provide excellent business opportunities for buyers of businesses in Florida.
Give Martin at Five Star Business Brokers of Palm Beach County a call today for a FREE evaluation of your business.