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Learning as I grow - Questions about early stages

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  • Learning as I grow - Questions about early stages

    Hey guys!

    Tim here from Mississauga Canada.

    I'm 27 and have been doing clients on the weekend for years for extra cash, decided to make it full time this season.

    I'm growing slowly and making sure I don't over extend myself because I know the value of quality work for fewer clients versus half *** work for many clients.

    I don't want to be a huge company, just my truck and maybe 30 - 40 houses max per week.

    Questions:

    Business side:
    I have my accountant, my tax ID, my name registered, looking into insurance and business bank account.

    1. I have all my current clients on cash basis, should I convert them to legit accounts and begin charging tax, invoicing etc.. Or just start this with every new client I gain.

    2. I'm pretty much invoicing for each service as I go, If a person pays me cash for the month up front, do I only need one invoice for this? Just stating the date and for the duration, 4 weeks?

    3. Business bank account, Do I need to put all business earnings into this account and keep them there providing bank statements to my account for each month?


    Lawn side:

    All my clients are maintenance residential homes, if they ask for over-seeding and fertilizing I do it for them and charge them 20$ extra for labor and material cost.
    Is it wise to offer a complete lawn care packager per month, i.e cutting, weeding, seeding, fertilzing, (Spring / Fall months)

    Such as Spring : 200$ per month, 2 cuts, 1 over-seeding, 1 fertilizing, and provide material cost in invoice.

    Little things like this getting me caught up!

    I'm excellent with my craftsmanship, have a solid 2013 F150 with 25k on it, and all the commerical equipment up until a riding mower.

    I just don't enjoy the business side of it lol, any help would be appreciated!!

    Currently 15 clients, some weekly some biweekly, only 1 account on the books at the moment.

  • #2
    Welcome to our forum!

    Questions:

    Business side:
    I have my accountant, my tax ID, my name registered, looking into insurance and business bank account.

    1. I have all my current clients on cash basis, should I convert them to legit accounts and begin charging tax, invoicing etc.. Or just start this with every new client I gain.
    You can accept cash and that is legit. You may or may not need to collect sales tax on your services, so you will want to check into that.

    Should you pay tax on your income? Yes.

    You can email or leave invoices with your cash customers and write paid on them once they are paid.

    Getting paid after each job ensures you don't have to wait for your money or go chasing down a customer some time later after they haven't paid you. So as long as it is you on site at each job, collecting cash is not a bad thing. The only thing that would be better is to get paid in advance for the month.

    You should be creating invoices for accounting purposes so you know how much you are making and how much customers may owe you if they are late payers.

    2. I'm pretty much invoicing for each service as I go, If a person pays me cash for the month up front, do I only need one invoice for this? Just stating the date and for the duration, 4 weeks?
    If they are paying you cash in advance for the month, you can give them an invoice as a receipt that says they paid for the month. Keeping good records is so important early on or things will spiral out of control later as you get more customers and have less time to deal with them.

    3. Business bank account, Do I need to put all business earnings into this account and keep them there providing bank statements to my account for each month?
    You don't need a business bank account. It can be nice to have one to keep your business and personal money separated. As long as you are a sole proprietor, the business money and your money are really one in the same.

    Keeping them separate is something that if you do now, makes things a lot easier down the road when you get a lot more customers and want to incorporate. That is when it is an absolute must that you separate your finances from your businesses as a corporation is it's own separate entity.
    Lawn side:

    All my clients are maintenance residential homes, if they ask for over-seeding and fertilizing I do it for them and charge them 20$ extra for labor and material cost.
    Is it wise to offer a complete lawn care packager per month, i.e cutting, weeding, seeding, fertilzing, (Spring / Fall months)

    Such as Spring : 200$ per month, 2 cuts, 1 over-seeding, 1 fertilizing, and provide material cost in invoice.
    If you can sell your customers on an annual package that includes additional services beyond lawn mowing, you will be on the job site longer and that should equate with making more money. So yes it is a good thing. It is better to make more money from a smaller group of customers than it is to make less with a lot of customers. The more job sites you need to go to during the day ends up costing you more in gas and lost production time.

    I hope all this helps. Keep us posted as you go.
    - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
    Download your Free trial of Gopher Lawn Care Software.

    Comment


    • #3
      Steve you are the man, thank you sir!

      Comment


      • #4
        You're welcome. Let us know if any other questions pop up as you go.
        - Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
        Download your Free trial of Gopher Lawn Care Software.

        Comment

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