||1 FT Owner
||North Denver Metro
|Reason For Sale:
||** Not Included
This business has provided delivery of fresh, potable water to homeowners and commercial properties since 1993. At this time, there are approximately 800 active customers and in 2016, the company provided service to a total of 236 of them. Monthly billings during 2016 were approximately $42,500. The biggest fifteen customers had average billings of just under $14,000 last year, which was $36,908. This group has also accounted for over $650,000 in sales over the past three years.
Demand for services is growing steadily with 2016 sales $27,700 (5.7%) higher than the previous year. The trend is continuing in 2017 with sales at record levels for the past four months. YTD revenue is approximately $18,000 (8.6%) higher. More importantly, cash flow increased $34,658 which is an impressive 24.4%.
Water delivery can be an extremely cost effective solution for customers when compared to the cost of drilling a well or paying water tap fees for municipal service. Approximately 40% of customers prefer deliveries on a regular schedule, with the remainder served on a call-in basis. These scheduled deliveries allow for a more even business flow and yield higher gross profits from reduced travel time, since a truck load can service one to three deliveries at a time.
The company has four delivery trucks, three of which are health department certified. The fourth is used for providing non-potable water only. In total, the tangible assets included in the sale are valued by the seller at $240,900. The business has been operating from the same location for 18 years. It is centrally located for easy access to the company’s service area and is close to the most frequently used water fill station. There is an office trailer, space for five trucks, parking for the employees’ vehicles, and storage for the miscellaneous equipment.
There are several potential avenues for expanding business. These include: service during extended hours and/or on weekends; service to nearby mountain communities; service to the cannabis industry, which is enjoying tremendous growth; serving the oil fields in Weld County; adding related delivery services; and, additional marketing efforts within the service area.
Represented by Phil Loughman. Tell me more about this business.
Disclaimer: All information contained herein has been provided by the subject company, or its agent, to Front Range Business, Inc. (FRB); and while believed to be correct, said information has not been verified. Accordingly, FRB makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that FRB shall not be liable in any way for any loss or injury suffered by said recipient in connection with the delivery by FRB of this information. At all times, FRB is an agent for the seller and not for the buyer, unless a specific agreement exists for FRB to act as the buyer’s agent.