Chris Koerner explains why tortilla delivery route businesses are a trap. The seller claims $250,000 net profit on a $500,000 asking price, but that profit comes from the owner doing all the driving and deliveries. You'd be buying a job, not a business. Home service businesses offer better multiples with less hands-on work.
Every now and then on Biz Buy Sell. You'll see a tortilla delivery business for sale and it looks super attractive. $250,000 a year of net profit. Buy this business for only 500,000. That sounds pretty good, right? Only 2x multiple. No, don't buy these bread delivery routes or tortilla delivery routes. Here's why you're buying yourself a job. The person selling that business is the person in the truck delivering all these carbs. You don't want that. There are better businesses to buy, namely home service businesses to buy that are much less work that you can buy for just as attractive multiples. I consulted a guy through this at episode 28 of my podcast, the Kerner Office tkopod.com no ads. Follow me for more ideas like this.
