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xandrew245x
08-31-2012, 07:06 AM
I started late in the season this year, and decided from the start to really wait until next season to get my business into full effect. I have been working on my plan for next year, but I have a few questions. The biggest question being figuring out my operating expenses.

I'm not exactly sure how to figure it out but here is my best guess.

Right now I have a low overhead, I don't have a truck or trailer payment, actually my truck was given to me. Here is what I believe my expenses are right now.

Trailer:$1100
Gas:1500
mower:$3000
advertisement:$300
trimmer:$300
Blower:$300
misc:100

My current expense is only about $11 an hour. Next year I want to aim to be a legitimate business, and work my way up to the correct equipment. What I am confused about is what should I include in my list, even though I don't need a new truck or trailer, should I still calculate it in my operating cost in case I would need to buy one?

Here is hourly operating cost of the things I want:

Truck:$7000
Trailer:2500
Commercial Mower:$6000
Maintenance:$1000
Gas:$2000
Misc:$500
Advertising:$500
Insurance:$1500
Trimmer:$300
Blower:$300

This comes out to a total of $21600 of expenses a season, $36 an hour

Here is a cost of everything I actually need, I already have a truck and trailer, and I don't really need to upgrade them yet.

Commercial mower:$4000
Maintenance:$1000
Gas:$2000
Misc:$500
Advertising:$500
Insurance:$1500


That comes out to $9500 a season, about $16 an hour of expense.


Should I still include the price of a new truck and trailer? As well as a price for a new string trimmer and blower?

Let me know if you think any of my numbers are off, this is based off of 20 hours a week and 30 mowing weeks a season.

Steve
08-31-2012, 12:26 PM
A biggie you need to keep in mind is taxes.

even though I don't need a new truck or trailer, should I still calculate it in my operating cost in case I would need to buy one?

The thing is, all mechanical equipment is slowly destroying itself overtime and will need to be replaced. It's great that you have a truck now, but as soon as you are out there driving it, it will be falling apart and money will need to be put away to buy another.

Chaz
09-03-2012, 08:47 AM
Should I still include the price of a new truck and trailer? As well as a price for a new string trimmer and blower?

Let me know if you think any of my numbers are off, this is based off of 20 hours a week and 30 mowing weeks a season.

a new commercial mower, should be faster than what you have, so it being faster will make you more productive! ;)

If you new truck offers no advantages than what ur current has now, i wouldn't bother. If it has a plow, bigger cab, bigger bed, stronger or 4x4 (4x4 is advantage if u find yourself getting stuck i guess) that would also boost productivity

shane-pa
09-04-2012, 08:16 PM
What you didn't mention was the cost of repairs and maintenance of the equipment and vehicles. Blades, oil, tires, grease. this all adds up over the course of a season. Especially if you don't know how to do the work yourself but will have to pay labor costs.

xandrew245x
09-05-2012, 06:38 AM
What you didn't mention was the cost of repairs and maintenance of the equipment and vehicles. Blades, oil, tires, grease. this all adds up over the course of a season. Especially if you don't know how to do the work yourself but will have to pay labor costs.

I included maintenance-$1000, I can do pretty much everything myself.

shane-pa
09-06-2012, 07:31 PM
didn't see that the first time.

Hedgemaster
09-06-2012, 07:48 PM
post it notes
paper clips
envelopes
stamps
staples
paper
pens
highlighters
ink
software
etc...

You get the idea.



Misc. hand tools:
knife
wrenches
pruning saw
rake
shovel
etc...

Even if you think you have everything you need - you don't.

SECTLANDSCAPING
09-06-2012, 09:09 PM
post it notes
paper clips
envelopes
stamps
staples
paper
pens
highlighters
ink
software
etc...

You get the idea.



Misc. hand tools:
knife
wrenches
pruning saw
rake
shovel
etc...

Even if you think you have everything you need - you don't.

Post it notes and envelopes. Two things I always need. I'm about 5 days late with sending out invoices because I kept forgetting envelopes. Then I picked them up yesterday and forgot stamps. :mad:

I'm soon to have a workshop. So my list is stuff like welder, tire changer, lift, bagger for my ZTR, leaf loader, and some other stuff.