Business Breakdown: Mobile Document Shredding
We’re searching for our next business to acquire and while our recent focus has been more on accounting/ bookkeeping firms, this interesting little nugget popped up.
While I am no Michael Girdley, Codie Sanchez or Ben Kelly, I do review a ton of deals.
With that said, here’s my hot take on this document shredding business. I’ll preface it by saying that I’m not a big fan of being a franchisee which is what this one seems to be, but I DO really like this business model.
Breakdown:
🚛 Two mobile document shredding trucks 🇺🇸 Located in Texas but can be relocated anywhere 🏦 Seller financing —> 100k down and then 75k financed over 3 years 🤝 Support and training and 6 months of consulting
Here’s the good 👍🏻
- Simple business. You pick up documents and shred them. These trucks do the shredding and the more contracts you gather in close proximity, the more you can make. There’s nothing complicated about it. You just have to know what buttons to push on the truck
- Market by door knocking next to existing customers or a little social media presence. These “boring businesses” are really in right now. Leverage that
Here’s the bad 👎🏻
- These are only the trucks. It’s not the BUSINESS or even the offsite facility. Just the trucks.
- It never mentions it, but Shredtech is a franchise.
The ugly 🙈
- There isn’t any current cashflow.
- You still don’t have a facility
My questions:
- Are these just the shred tech trucks or is it part of the franchise?
- Tell me more about the sale of the shredding business and these trucks being leftover?
- Are there any offsite shredding facilities that we can contract until we have our own?
My overall ranking on this one would be 🍩🍩/ 5 Doughnuts. There’s some potential with the business model but not sure if this particular deal is worth it.