Want to buy :)

[bullseye]

Hi all,

1st post so am going to keep it short.

Read a lot about sublimation and am looking to buy a business including a fully functioning website with hundreds of designs. How much do you think I should allow as the equipment is not new. I would just need to add a PC.

[John G]

How longs a piece of string - the business could be a few hundred or it could be many thousand. It would depend on what machinery came with it, how good the books look, any repeat customers and any ongoing orders.

Cheers John

[bullseye]

I would have thought a bit more than a few hundred with all the equipment an online shop as well as all the designs in photoshop format.

No?

[accdave]

I'm glad I never bought a fully fledged business when I started in sublimation. Knowing nothing about, I would have lost all my money by a) wasting half the stuff learning how to do it b) Throwing the other half out of the window trying to get the hang of it

[bms]

Is this a trading company and does it have sets of accounts? A rough guide to value of a trading company might be to take the last 3 years profits and take a weighted average value of these profits (current year x3, last year x2, previous year x1 and divide the lot by 3). This gives some idea but goodwill, assets, stock at cost etc will all add to the vendors idea of what they want to get for the business - then it's down to haggling

[bullseye]

Is this a trading company and does it have sets of accounts? A rough guide to value of a trading company might be to take the last 3 years profits and take a weighted average value of these profits (current year x3, last year x2, previous year x1 and divide the lot by 3). This gives some idea but goodwill, assets, stock at cost etc will all add to the vendors idea of what they want to get for the business - then it's down to haggling

Thats a good idea I'll find out. I don't think it has earned a fortune as its been run more as a hobby it sounds like. It seems most things start as hobbies.

[JSR]

The value of the business is down to its returning customer base, otherwise all you're doing is buying a bunch of second-hand hardware.

I've seen many listings on ebay that claim to be selling a business by virtue of a domain name and stock website with a bunch of "template designs" (that look like everyone else's) - but a template on a piece of expensive webspace doesn't make it a business.

If this is a sublimation business (or hobby) that's actually making money, then I wonder why they're selling it. Look at how many sublimators there are out there who work all hours and are grateful if they've just made ends meet by the end of the month. There's a thread here somewhere asking what everyone here does in addition to sublimation just to pay the bills.

Make sure you know what you're buying, otherwise the only one who'll make money out of this is the one who's selling it to you.

[mrs maggot]

JSR you hit the nail on the head

[bullseye]

The value of the business is down to its returning customer base, otherwise all you're doing is buying a bunch of second-hand hardware.

I've seen many listings on ebay that claim to be selling a business by virtue of a domain name and stock website with a bunch of "template designs" (that look like everyone else's) - but a template on a piece of expensive webspace doesn't make it a business.

If this is a sublimation business (or hobby) that's actually making money, then I wonder why they're selling it. Look at how many sublimators there are out there who work all hours and are grateful if they've just made ends meet by the end of the month. There's a thread here somewhere asking what everyone here does in addition to sublimation just to pay the bills.

Make sure you know what you're buying, otherwise the only one who'll make money out of this is the one who's selling it to you.

I would tend to disagree with some of your comments...

Most sublimation businesses have small turnovers as usually you are producing small numbers. If you are fortunate enough to print large quantities they are screen printed or produced in China etc or make up part of a larger printing or other business.

Therefore most sublimation printers produce gifts so returning customers are usually only making small purchases.

As for designs I know that these are mainly unique in design and are not on Ebay or produced by Paul who I believe is on this Forum. Not many sublimation business have an online shop that you can choose from a range of designs, atleast none that I can find.

In my opinion it takes time to build a website and any designs which inturn must carry a cost.

Most hobby start ups only ever breakeven or earn only small profits for a massive effort. I would love to hear from anyone that earns a good living and by good I mean £25K after deductions such as Tax and N.I only working a 40-50 hr week and from just sublimation!

[John G]

Hi Bullseye, I think your valueing the business on the strength of the 1000's of designs on a website. The designs are only any good if they are actually selling and thats why you need to see the books. If you do buy this company - and it sounds to me that you have already made your mind up, remember to ask whether all the designs would belong to you or would he be able to sell them on, on a disc - on ebay.

Cheers john