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Why is mobile document shredding a good business?

AXO Shredders now a Shred-Tech Company
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Why is mobile document shredding a good business?

Due to the industry they operate in or the types of service or product they offer, some businesses are inherently difficult to establish, easily toppled by competition, cause the owner to be constantly on-site to deal with problems and are not easy to sell when the owner wishes to exit. By contrast mobile shredding companies enjoy the following:

  • Easy to establish (AXO can provide considerable advice in this area)
  • Provides a service needed daily by a very wide range of businesses and Government Departments
  • The customer is "sold once" but income recurs regularly thereafter
  • There is a very high retention rate of customers - over 95% per year is the industry standard.
  • Staff can be trained to perform all tasks leaving the owner free to work on expanding the business
  • The owner doesn't need to be constantly involved to deal with day to day issues
  • Bad debts are almost nil
  • Easily expandable
  • Breakeven can be achieved with one less than fully booked truck
  • Easily added as an additional service to an existing business
  • Easily sold - in fact good mobile shredding companies are approached by prospective purchasers on a regular basis

The last point above should not be underestimated. One of the key attributes of a business such as mobile shredding is that the business produces a regular cash flow, even if there is a change of ownership.

Existing customers will continue to use the service, referrals will continue and to a large degree staff will run the business while owners become accustomed to operations. These are some of the reasons why mobile shredding businesses that become successful are highly prized acquisition targets corporate who have become more active in the industry.

In addition to the strong cash flow, records storage and management firms are attracted to mobile shredding firms because this gives them a captive audience to sell their archive storage services to, which places an extra premium on the value of a mobile shredding firms customer base.

Shred-Tech Asia Co., Ltd. Shred-Tech Corp. Shred-Tech® Australasia
home icon 789/52 Moo 1, Nong-Kham, Sriracha, Chonburi,Thailand 20230 home icon 295 Pinebush Rd.Cambridge, Ontario Canada N1T 1B2 home icon PO Box 620, South Yarra,Victoria 3141 Australia
tel icon+66 3834 8250 email icon tel icon+1 (519) 621-3560 email icon tel icon+61 0498 730 684 email icon

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