My Dumb Pricing Mistake First Time Around

So I decided to sell my cleaning biz – the one I sweated over for 10 years. Woke up one day feeling like it was time. First thing I did? Honestly? I pulled a number straight outta thin air. Like, literally looked at my yearly profit and slapped on a "4" in front, because some blog said 4x earnings was "standard." Dumb. So dumb. Listed it for $400k thinking people would fight over it.

Reality hit like a truck. Crickets. Maybe two lowball offers insulting enough to make me wanna slam the phone down. Felt like my pride and joy was being treated like old mops. I was pissed and confused. Why wasn't my golden goose worth gold?

Getting Real & Calling In Help

Took me a couple weeks moping around the office to admit I screwed up. Swallowed my pride and called this advisor friend who sells businesses. Told her my "4x profit" genius move. She sighed. Like, actually sighed loud over the phone. "That multiplier thing?" she said, "Forget generic formulas. They're junk." Felt dumber than a bucket of rocks.

She walked me through digging into the real stuff. The stuff I ignored:

• Who are these customers? Turns out, having mostly one-time jobs looks way worse to buyers than big contracts washing offices every month. Stability sells.
• My gear ain't shiny. Half the vacuums sounded like dying squirrels. Didn't factor in replacement costs.
• I was the business. Buyers saw right through it. If I left, who'd keep clients happy? No management depth meant big risk.
• Revenue growth? Flat as a pancake for 2 years. Potential matters.

We got brutal. Poured over 3 years of bank statements, service contracts, equipment lists. Counted every damn spray bottle and squeegee. Figured out exactly what it cost someone else to run this show.

The New Number & Actually Selling

Working with my advisor buddy, we got a proper valuation. Not magic, just hard numbers showing real profit after paying a fair manager wage, real equipment value, and real customer stickiness. The number wasn't $400k. Not even close. It landed solidly around $235k. Gut punch? Yep. Honest? Absolutely.

Relisted at the right price. This time? Phone rang. Had meetings. People saw the organized books, the clear contracts, the realistic picture we painted. Didn't oversell it. Got multiple offers within a realistic range.

Found a buyer who actually ran other cleaning gigs. He saw the potential I missed – expanding the client base, upgrading gear gradually. We haggled a bit, sure, but it started from that solid $235k foundation. Closed the deal at $228k. Felt fair.

What I Learned (The Hard Way)

Getting the price right wasn't about fantasy. It was:

• Forgetting dumb formulas. 2x, 3x, 4x? Worthless without context.
• Showing the ugly truth. Weak spots? Be upfront before the buyer finds them.
• Proving it runs without you. No buyer wants your job. They want profit.
• Paying for expert eyes. Worth every penny. They see what you're blind to.
• Pricing based on their reality, not your sentimental value or wild hopes.

Sold it a year ago. Buyer’s doing alright. I sleep fine knowing I didn't rip him off and he didn't steal it. Got the price right.