PhotoCo | Profitable Real Estate Photography

 

Calgary Real Estate Photography

Profit from the Calgary Real Estate Services Industry

Price: $275,000

Normalized Cash Flow: $100,000

What They Do – The Short Version

  • Advertising solutions fPhotoCoor Realtors, home builders, and renovators in the form of photography, measurements, and the marketing of properties for sale.
  • Scheduled appointments for extensive photography of the property, along with measurements, if requested, to develop a detailed interior floorplan.
  • Photos and measurements are processed, prepared, and delivered electronically to the customer the next business day.
  • Customer feedback provides continuous improvement opportunities.

Summary

PhotoCo is a well-established and successful company offering Real Estate advertising solutions. In business since 2009, PhotoCo provides realtors, home builders, and professional renovation specialists with high-quality photographic layouts, virtual tours, floorplans, and feature sheets, allowing for modern and effective marketing.

There are three years of complete financials.

Operations

Servicing Calgary and surrounding areas, this is a home-office run business; customer appointments occur on location at specified meeting times.

Shoots are scheduled during daylight and twilight hours Monday through Friday.

There is an extensive methods, policies, and procedures manual to ease the transition to the new owners.

PhotoCo’s staff consists of the owners and three sub-contractors. WCB is not an issue because they are contractors.

Revenues do see some seasonal fluctuation throughout the year, staying in sync with the Residential Real Estate Season. Yearly volume is divided between seasons, with the spring months seeing 45% of business, while the summer and fall months take up 33%, and the remaining 21% is spread out through the winter months.

PhotoCo uses a qualified service firm to maintain their equipment, and all of the equipment will be sold in good, working order. A full equipment list is available to qualified buyers. No vehicle is registered to the business for use.

PhotoCo has no warranty exposure beyond ensuring customer satisfaction on an individual basis by providing re-shoots and other customer-requested changes to layouts.

Customer Base

Repeat clients comprise 93% of business volume, while those that are new are referrals. Of the 21 new customers in 2015, 71% have utilized PhotoCo’s services more than once. New marketing campaigns have not launched in four years, and there is room for immediate growth.

PhotoCo maintains excellent professional Website and Social Media accounts.

Further Information

Three years of financial statements and a complete equipment list is available for Qualified Buyers.

Management Discussion

Q. Why you are selling?

A. It was out initial intention since the company’s inception, to build and sell this business in 7-9 years. We feel that the company is at its strongest point right now, we easily endured the economic downturn in Alberta this past year with a slight difference in Revenue, indicating how solid the business is.

Q. In your words, what does the firm do?

A. We are a real-estate photography company that is hired, mostly by realtors, to help market their listings and themselves. We provide various types photography, home measuring, and marketing for the listing.

 Q. How long will you stay after the sale to help in the transition?

A. New ownership should be able to smoothly transition within 1 month.

Q. Have the accounts receivable been purged of bad debts?

A. Yes

Q. Will you agree to a non-competition clause?

A. Yes

Q. Is there anything else you think prospective buyers should know?

A. This past year we provided services to 98 customers, 93% of which were repeat business, and as such, we haven’t needed to market services to new clients in 4-5 years. We had 21 new customers this year, all by referral, and 71%of those became repeat customers.

We have a well-established returning customer base, which is important in a good market when Realtors are conservative with marketing budgets. The current down market had little effect on revenue this past year, as new customers looked to us because they needed to invest more into marketing to keep their clients happy. We are continuously adapting to the market and offering new services to keep up with the latest and greatest realestate marketing trends. Having a well established customer base allows us to test new ideas prior to implementation to assure customer satisfaction and to save on cost.

The business can be expanded immediately, not just in our current footprint, but into other markets such as hotels, commercial real estate, rental properties, and industries outside of real estate, such as store front businesses, showrooms, service providers, and more.

Interested? Next steps:

• Fax us the non-disclosure document found on our listings page
• Phone discussion
• Release of financial information
• Meeting with seller and tour of premises.
• Discussions that may lead to a deal

Notice

The information contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.

David Page | An Alberta Business Broker

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