Falling behind

[Steve]

When you hear stories about business owners getting into and then out of lawn care because they feel they can't make money in it, what do you think of it?

Falling behind (http://www.rrstar.com/apps/pbcs.dll/article?AID=/20061217/BUSINESS04/112170025) - Eventually, he ended up at Ingersoll, first building heads for the company’s massive machines, then working on the spindles. But 10 years ago, Stewart got fed up with the management and wanted to go for his dream of running his own business.

Even though Stewart left on his own accord, Ingersoll folded in 2003, leaving him nowhere to return. And after the last economic downturn hurt his lawn-care business, he decided to get back into the manufacturing sector. But it hasn’t been so easy.

For the last two years, Stewart has worked a string of temporary factory jobs through staffing services, jobs that only last a few months and have not led to permanent employment. He believes his age makes employers avoid hiring him. And he has to pay for his own health insurance, a policy with catastrophe coverage, prescription benefit and a $7,500 deductible.


Ken Pogwizd, who lost his longtime job in May 2005, is working as a part-time chauffeur to make ends meet.

[tiedeman]

When business owners get into business and fail it because of a few reasons 1) They didn't project the numbers or the market correctly, 2) They didn't watch their cash flow, 3) their heart was not in it 100%.

[Steve]

Yea that's what I was thinking too.

Being laid off from a job and needing to make money fast, then thinking you will do it by starting a business can make things really rough on you.

How often does a business just start making profits right out of the gate?

[tiedeman]

My opinion is that you need to start just from scratch. Don't jump out and buy all new fancy equipment. Start out small with a cheap-o lawn mower and trimmer, and then go from there. I started out first by using neighbors mowings, and equipment. Then I moved onto using 21" push mowers, residential trimmers, and a broom to clean grass off from sidewalks.

Don't get in over your head at the start.

[myrlin]

They dont think about winter. They make the big money in the summer. That why I do contracts. Money come in all year. Just like a pay check .

Barry

[southernslang]

yea, when i started my lawn care biz after the hurricane,
i had one snapper and and a weed trimmer a neighbor gave me that was all flodded and nonrunning.
a little spit & glue got it back running long enogh for me to pay my bills and buy a new motor for the snapper.
but anyway i started small and now i look back and see major progress in what ive done in the pass two years.

[Steve]

I have seen many friends start businesses and spend big in the beginning. Usually they tell me 'you gotta spend money to make money.'

Have you had friends tell you something similar?

Only later do they come to the realization that their expenses are much higher than their competitors which puts them at a disadvantage.

[tiedeman]

Whenever I see a business get started at first and start to spend big money, I always tell them to slow down you will regret it.