EP #60 – What Retirement Actually Looks Like After 50 Years In The Trade w/ Steve & Mark Hall

Overview

Most gas engineers have no exit plan. They work until their body gives out, close the doors, and walk away from something that could have been worth real money.

Steve Hall spent 40 years building SMH Gas Specialist and made sure that didn’t happen to him. In this episode, he and his son Mark explain why you should be thinking about your exit at least 5-10 years out, what your customer base is actually worth, and what to do if your body gives out before your retirement plan is ready.

Highlights

Steve’s 50 years, and how they ran a two-man business

• (2:03) – How Steve got into the gas trade & started his business
• (2:34) – What’s changed in 50 years — the paperwork has ballooned.
• (5:32) – Why they never grew past four or five: at that size you’re off the tools and managing people instead.
• (11:24) – Leaning on servicing for repeat work. SMH Gas went from customer cards filed by month to annual reminders in Gas Engineer Software.

Knowing when to stop

• (8:44) – How Steve knew it was time to retire. He’ll be 72 when he finishes, re-registration was due again in January, and that was the point to draw a line.
• (10:05) – Putting profit into the pension for the last five or six years, and letting the business fund the retirement.

Why they sold rather than passing it down

• (7:09) – Mark lives in Hampshire and the business is in Oxfordshire, so with Steve stopping there was nobody to cover breakdowns.
• (14:56) – If Mark lived locally he’d have simply carried on. Instead, he’s using his share of the sale to help build his own business.
• (15:56) – Many heating business owners end up fading away without ever telling the customers.

Finding the buyer, and handing over

• (21:05) – Choosing a local buyer over a bigger company’s valuation
• (22:30) – How Mark met Luke and knew he was someone he could trust
• (26:40) – Walking LJ’s office staff through Gas Engineer Software — how an enquiry comes in, how a job gets set up, how service notes flag a strip-down.
• (28:42) – Telling the customers via email & phone

Thinking about your own exit

• (32:22) – Your customer base is worth money to someone newer to the trade, or someone moving into the area.
• (34:28) – Start thinking years out, not months. Steve says five to ten.