Accountant Small Business HELP PLEASE!

MrandMrsT_2

Hello

I am new here so please be kind with me!

I am seriously considering/would love to buy a small ironing business I have been offered for sale but have the following accounts query and would love it if there is an accountant on here who could advise me which is the correct figures:-

Example 1 - what has been provided to me)

Ironing income for one month £500
Fuel cost - £50
Power cost - £20
Therefore Profit for one month is £430

Example 2 - what I believe it should be)

Ironing income for one month £500
Fuel cost - £50
Power cost - £20
Phone cost - £10
Ironing would take approximately 55 hours to complete at a minimum wage cost of £6.08/hour - £334.40
Wear and Tear on equipment -£15.50 *

Profit £70.10

*based on a new steam generating iron (say £150, steam press say £100, ironing board say £50, 12 metallic ironing board covers £48, 6 normal ironing board covers £24 every 24 months

Prior to giving up work to have children 5 years ago I worked in accounts departments and was under the impression that no matter what the work/service etc being completed there needed to be a figure included for completing the work? Am I correct in this instance or would it all be as example 1 the current business owner has provided to me showing a very large profit?

My other little query is, the business has been running for two years at the end of this month. It has 3 weekly customers, six fortnightly customers and approximately six customers who have their ironing done every six weeks or so. On the above figures of profit etc does any accountant out there have an idea of what they would believe the business to be worth? Bearing in mind the current owner is keeping all the equipment so I would only be purchasing a client list - 15 names and addresses - people who have never met me - so may not actually want a new person doing their ironing and may leave as soon as new ownership occurs. I live in a different area and would need to change the phone numbers. But the business does include a very nice website and listings to google places etc all of which I would be given the passwords etc to so I could change to new phone numbers etc.

I would really appreciate any help out there as I need to come to a decision very shortly and am at a loss with my two above questions.

Thanking all in advance for replies!

billsavings

The small biz section is here. http://forums.moneysavingexpert.com/forumdisplay.php?f=27

MrandMrsT_2

Done, thanks for the help!