Rafiq Bhamani
Auckland, November 1, 2024
Founded in 2021, this service company has grown nicely over the years and operates such a simple business system.
“This company specialises in residential moving, office relocation, packing, manpower and junk removal. A large majority of the company’s customers are Auckland-based,” says Rafiq Bhamani.
This is such a simple business to operate. Virtually everything is outsourced. 95% of the bookings are handled by an overseas call centre and the marketing is handled by a third-party marketing company. Even the team of movers, drivers and packers are all contractors.
Rafiq continues “The current owner chooses to work around 15 to 20 hours a week but even this role could be easily carried out by a manager and the owner pays himself a wage of $95,000.”
This is a business where slick systems mean that the operation is lean and highly profitable. Really clever and targeted marketing pushes potential customers to an excellent website which generates leads that go to a call centre overseas. Well-trained staff convert these leads into bookings and advanced technology (including sector-specific CRM systems) is used to manage the workflow.
The business is slightly seasonal with around 65% of the business occurring during the summer months.
“The business has done well over this quieter period for house sales and property investment. Now that the OCR is on its way down, the owners are looking forward to a bumper summer.”
The company handled over 1100 jobs during the last financial year. One might think that a slowing housing market has meant a dip in jobs and sales there has been little change over the previous year’s trading for the same period.
Sales totalled $1.25m (excl. GST) for the year and EBITDA was a deeply impressive $528,000. That means, with the owner’s salary, there is a cash surplus of over $620,000 a year.
Competition is fierce in the industry, but barriers to entry are high and this company operates a little differently to the others.
“The owner has been really smart about setting out how he wants the company to operate. The outsourcing of most of the moving parts (excuse the pun!) saves huge amounts of money and ensures complete efficiency.”
Demand is constant and there are certainly growth opportunities. More marketing spends = more leads = more bookings = more revenue. It’s entirely scalable!
There are a range of growth opportunities available to help the business reach new levels of success, such as increasing the marketing budget, implementing business-to-business services, adding more trucks & offering services to retirement villages.
The business comes with four trucks and the actual operation is entirely relocatable. There are no premises as none are needed. The business can operate from any secure storage facility – just a place to securely park the trucks and store packing material.
The fact that the owner currently only invests around 15-20 hours per week is a testament to the efficiency of the systems in place. This also means that a new owner could potentially step into a well-oiled machine with little disruption, or even reduce their involvement further by hiring a manager. The use of contractors for all key roles, from movers to drivers, ensures that the business avoids the complexities and overheads of directly employing staff, allowing for greater financial flexibility.
The business’s reliance on an overseas call centre for managing bookings and inquiries further streamlines its operations, keeping local costs down and making it easier to scale without needing significant in-house resources. As competition within the moving industry intensifies, the current owner’s savvy decision to outsource and rely on tech-based solutions has helped this business to maintain a competitive edge. This scalability, coupled with its proven track record, means that future growth is not only possible but highly likely with increased marketing efforts or the expansion of services.
For someone looking to invest in a business that balances profitability with minimal time commitment, this opportunity stands out. With its established systems and the potential for even greater success, it offers a rare chance for a new owner to benefit from both immediate returns and long-term growth.
“This is a wonderfully simple business for someone looking for something that does not take up too much of their time but that gives a huge cash flow. It’s a scalable business and there are growth opportunities and improvements that can be made to it.”
This is fabulous buying at $1.5m plus stock (including all assets). The opportunity is available now through Rafiq Bhamani at LINK Business.
Rafiq Bhamani is a dynamic and proactive broker with extensive expertise in both owning and selling businesses and has applied his firsthand experience and passion to help other owners achieve their goals. With a knack for negotiating and closing deals, and ensuring all parties are satisfied, Rafiq is excited to share this latest service company that has hit the market.
For more information get in touch with Contact him at rafiq.bhamani@linkbusiness.co.nz or on 0211291916.
