Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Expanding/Investing Your Business


General Business Discussions

A place to talk about general business discussions.
View Poll Results: What % of Profit do you invest in your business?
What Profit? 0 0%
10% 4 26.67%
20% 3 20.00%
35% 4 26.67%
50% 3 20.00%
Go for Broke 1 6.67%
Voters: 15. You may not vote on this poll

Reply
 
Thread Tools Search this Thread
  #1  
Old 02-05-2013, 09:40 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default Expanding/Investing Your Business

Just wondering what percent of profits you guys put back into your business?

In year 1, I didnt spend much and enjoyed a small profit.

Year 2/3, I dumped a ton of money back into the business. I received a few RFP's that I didnt have the equipment for. I didnt want to be in that predicament again.

Year 4, thats where I'm at now. I told myself I was going to enjoy my money after buying way to much but just in Jan I spent 6k in equipment and repairs.

Last edited by SECTLANDSCAPING; 02-05-2013 at 09:42 PM.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 02-05-2013, 09:51 PM
Cashin H&P Cashin H&P is offline
new member
 
Join Date: May 2011
Location: Bedford NH
Posts: 409
Rep Power: 0
Cashin H&P is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by SECTLANDSCAPING View Post
Just wondering what percent of profits you guys put back into your business?

In year 1, I didnt spend much and enjoyed a small profit.

Year 2/3, I dumped a ton of money back into the business. I received a few RFP's that I didnt have the equipment for. I didnt want to be in that predicament again.

Year 4, thats where I'm at now. I told myself I was going to enjoy my money after buying way to much but just in Jan I spent 6k in equipment and repairs.
I put almost all my profit back in the business. Im 20 and I rent the second floor from my grandparents (more of do lawn care/plow) so my personal expences are very little. There fore while I can afford to I am putting almost all the profit back into the company so I have all the nessary equipment. My thought is that when I do have much more personal expences I will be making more and not have to invest as much.
Reply With Quote
  #3  
Old 02-05-2013, 10:16 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by cashin home and property View Post
There fore while I can afford to I am putting almost all the profit back into the company so I have all the nessary equipment. My thought is that when I do have much more personal expences I will be making more and not have to invest as much.
I understand that. I kinda see it as once you stop investing. Youll start to shrink. I know theres no connection between revenue and equipment purchases but it seems like it in my mind.

You also get to a point where you cant grow without spending. Your better off picking it up when the price is good then when you absolutely need it. That leads to impulse buying.

At this point I have back ups for back ups. I have equipment that I dont even need to use but do just to spread the wear out. If a mower,blower,truck,trailer, goes down, I'm covered.
Reply With Quote
  #4  
Old 02-06-2013, 05:58 AM
LawnBoy0311 LawnBoy0311 is offline
new member
 
Join Date: Jun 2012
Location: East Coast
Posts: 1,169
Rep Power: 0
LawnBoy0311 is on a distinguished road
Default

I consider myself ultra cheap. If something goes down and needs to be replaced, it will. But just to buy something because it's cool or looks good...that I have a hard time doing. I don't know why I'm like that, I always am. I start out spending like crazy, then all of a sudden stop and have to justify everything to myself.

On that note, I paid all my equipment off my first year. My personal expenses were covered by my full time job. This year I'll be putting 20% back into the business. I'm debating on doing more...just not sure at the moment. Wifey and I plan to move next year so I may do more to cover costs when I start up after we move.
Reply With Quote
  #5  
Old 02-06-2013, 07:30 AM
stevef1201 stevef1201 is offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,236
Rep Power: 7
stevef1201 is on a distinguished road
Default

Because I figure reinvestment in cost of doing business, my expenses are about 25 dollars an hour. Add the cost of my helper and it goes up to about 35 an hour. Each month I have a set amount to reinvest, that goes into the bank (Savings), until I need it. It is real nice when a weed eater goes out, and I just pop into the store and buy a new one and not worry about how I am going to pay for it. It was not that way in the beginning, I overused credit cards, borrowed from family, scrimped every step of the way.
Reply With Quote
  #6  
Old 02-06-2013, 07:47 AM
LawnBoy0311 LawnBoy0311 is offline
new member
 
Join Date: Jun 2012
Location: East Coast
Posts: 1,169
Rep Power: 0
LawnBoy0311 is on a distinguished road
Default

Quote:
Originally Posted by stevef1201 View Post
Because I figure reinvestment in cost of doing business, my expenses are about 25 dollars an hour. Add the cost of my helper and it goes up to about 35 an hour. Each month I have a set amount to reinvest, that goes into the bank (Savings), until I need it. It is real nice when a weed eater goes out, and I just pop into the store and buy a new one and not worry about how I am going to pay for it. It was not that way in the beginning, I overused credit cards, borrowed from family, scrimped every step of the way.
Do you use a percentage or a set amount?
Reply With Quote
  #7  
Old 02-06-2013, 07:50 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

after 23 years i don't think the investment ever ends.
sure you make more money and own more equipment then when you started out but nothing lasts forever and things need fixing and replacing as well as marketing and so on and so on.

when i was starting out it was easier to baby my equipment and make it last forever but as soon as you get to the point where you have other people running your gear those days are over and reality sets in.

things were easier in that regard when i was smaller but i was not making as much money either and as a business and as you grow the only path is onward and upward.
you can not spend the rest of your life making 30, 40, 50k a year.
it may seem like good money but it is not even middle class these days.

when i started out i worked for a company for 5 years and i knew early that this is what i wanted to do so i worked my way up the ladder in the company and constantly expanded my knowledge and i saved every dime i made that i could for 5 years so when i started out i went out and bought all new mowers and blowers and such right from the get go.
it was also back in the 1991 and you could find a old chevy or ford mason dump that was in excellent shape for 1 to 2K that ran for years compared to today you will spend 15k on a piece of crap.

so i never really looked at my business as a investment i looked at it like my savings and when i started out i just switched my savings in cash over to equipment and a business that was gonna continue to accumulate and bring me more cash savings.
there is always something to spend money on in a business as well as you throw life in general into the fray and the money flies out the door quick.

plus as a business if you are making big money you need to only keep a certain percentage in the account and you want to make sure you not only give yourself a income but absorb most of the profits in the form of bonuses and such.
this way you pay income tax on that money as a individual which is far lower then the rates on a business.

with a business the money you have siting around in the form of profit the term " use it or lose " comes into play.

Last edited by dpld; 02-06-2013 at 07:52 AM.
Reply With Quote
  #8  
Old 02-23-2013, 04:10 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Quote:
Originally Posted by dpld View Post
you can not spend the rest of your life making 30, 40, 50k a year.
it may seem like good money but it is not even middle class these days.
This is a good point. I see more then half the guys on here are content where there at. Most of these guys are solo ops. I cant see a solo guy making more then 60k a year. After expenses there barely making 30gs which is a low paying job. Its better then some in this economy but well below the average in every state. The idea of a business is to make money not have a below average job.

I'm at the point now where I'm looking to go into different fields. Not sure yet if it will be Excavating, Home Improvement, Paving, Hauling, Towing, Mulch yard, Garage, etc. There all appealing in one way or another and complement my business.

This isnt because I cant grow the landscaping part either. Its just another way to bring in revenue and some will lower my overhead and expenses. It also diversifies my income so when one part isnt doing so well the other might.

Last edited by SECTLANDSCAPING; 02-23-2013 at 04:12 PM.
Reply With Quote
  #9  
Old 02-23-2013, 06:21 PM
fieroboi's Avatar
fieroboi fieroboi is offline
Senior Member
 
Join Date: Apr 2009
Location: Camrose, Alberta, Canada
Posts: 142
Rep Power: 7
fieroboi is on a distinguished road
Default

This is an interesting question. I believe that if one wants continued growth, we do need to invest a portion of profit back into business. It is a good business practice to do that. As for the portion, I am sure I've been investing approximately 20%. That can change depending on what I am looking to purchase and what equipment I am after.

This year the big plan is to add another truck to the fleet, a mortar mixer and a hydraulic dump wagon as I hate borrowing a friends for odd jobs. Which means that this years investment will be larger than most. Otherwise in normal situations what happens is equipment is always being updated. For example, updating one of the mowers or snowthrowers every couple of years means that over time, they are all in decent shape and rarely break down.

What I refuse to do is borrow money to update equipment. A truck purchase can be a different story, but I`m still at a stage that purchasing a new one will not happen. I used to sell vehicles for a living and they are the most expensive thing someone can own. I saw too many people in the cycle of replacing their vehicle every three to five years and all one is doing is making payments the rest of their life. NO Thanks, i don`t want to work for a payment.


Lloyd
Blue`s Yard FX
Camrose, AB
Reply With Quote
  #10  
Old 02-25-2013, 08:41 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by SECTLANDSCAPING View Post
This is a good point. I see more then half the guys on here are content where there at. Most of these guys are solo ops. I cant see a solo guy making more then 60k a year. After expenses there barely making 30gs which is a low paying job. Its better then some in this economy but well below the average in every state. The idea of a business is to make money not have a below average job.

the thing that most in this industry don't grasp is that no matter what business you are in you have to constantly grow and expand.
you can not stay even and remain content as well as what most don't take into consideration because they are all young is that you will not be able to do all the work until you die or retire which ever comes first.

my business is my income and my retirement and i expect it to support me until the day i die so i am constantly trying to improve upon it and have the systems in place to let it run itself.

i still work on the jobs and am active in 100% of the operation but at 47 and 30 years being a lawn monkey/ tree climber it would be nice to start cutting some of those parts of the job out of the picture.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Investing JR- Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions 8 03-23-2010 06:11 PM
Expanding My Business TnT Outdoor ervices General Business Discussions 4 06-11-2009 10:33 PM
Expanding your business Steve Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions 0 09-19-2007 03:32 AM
expanding business landonkade Lawn Care Marketing & Post your marketing material for review! 11 09-09-2007 05:10 PM
Expanding business myrlin General Business Discussions 18 11-21-2006 10:36 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
New company in Michigan
SEM
04-24-2015 09:27 PM
Yesterday 11:42 PM
by SEM
2 54
Total yard rehab
SGL1
04-23-2015 03:59 PM
Yesterday 08:25 PM
by SGL1
7 143
mowing pic
joshlawncare
Yesterday 12:34 PM
Yesterday 08:09 PM
by avetslawncare
1 51
Big (to me) mulch job
tl757
04-23-2015 05:32 PM
Yesterday 08:01 PM
by avetslawncare
7 163
what's the big deal...
Tony317
Yesterday 02:19 PM
Yesterday 02:19 PM
by Tony317
0 38
Lawn Care Service in...
Friscobob
04-24-2015 03:33 PM
Yesterday 05:35 AM
by Sprinkler Buddy
2 79
Newb Question - Multiple...
DependiLawn
04-24-2015 11:36 PM
04-24-2015 11:36 PM
by DependiLawn
0 41
maintandlawndispatch...
SGL1
04-21-2015 03:31 PM
04-24-2015 04:42 PM
by Steve
9 214
Thoughts on Undocumented...
element009
09-25-2011 11:08 AM
04-23-2015 09:32 PM
by Chilehead
56 15,509
Hello Everyone
DesignsByBnC
04-22-2015 04:07 PM
04-23-2015 02:19 PM
by DesignsByBnC
2 93
The upcoming rainy...
5StarLawnscaping
04-21-2015 01:22 PM
04-23-2015 12:54 PM
by Steve
7 192
color fliers?
holymoly
04-18-2015 02:32 PM
04-23-2015 12:50 PM
by Steve
12 358
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
04-22-2015 07:04 PM
by Just for Cuts
59 2,529
WARNING! Especially to...
SC93
04-19-2015 12:05 PM
04-22-2015 01:39 PM
by Steve
14 420
Could be great news for...
SC93
04-14-2015 11:06 PM
04-22-2015 01:28 PM
by Steve
15 510
quick pic
joshlawncare
04-14-2015 07:49 PM
04-21-2015 05:01 PM
by joshlawncare
4 334
Got Inspected today
swstout
08-09-2010 10:31 PM
04-21-2015 03:53 PM
by SGL1
10 3,993
Smoked my first belt!
SGL1
04-20-2015 08:46 PM
04-21-2015 03:28 PM
by SGL1
4 162
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
04-21-2015 12:47 PM
by Steve
25 1,015
lawn care business...
holymoly
04-18-2015 02:56 PM
04-21-2015 06:18 AM
by holymoly
3 256
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
04-21-2015 03:18 AM
by ExtremeLawncareServices
57 5,252
landscape insurance
clarkslawn
03-30-2015 10:14 PM
04-20-2015 10:02 PM
by SGL1
4 472
Poll & Discussion...
CHEESE2009
09-16-2011 06:16 PM
04-20-2015 08:20 PM
by avetslawncare
27 5,672
weed
avetslawncare
04-16-2015 07:56 PM
04-20-2015 01:08 PM
by Steve
4 265
Aerating / Dethaching...
Hard-Body lawn & garden
04-12-2015 07:53 PM
04-19-2015 08:49 PM
by Chilehead
17 601
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
04-19-2015 09:21 AM
by KJ90
8 1,014
bidding a cemetery....
NPM_LLC
03-28-2015 10:56 AM
04-19-2015 05:26 AM
by RSE
22 1,020
Hustler Raptor
SGL1
04-13-2015 09:27 PM
04-18-2015 07:53 AM
by SGL1
15 523
is craiglist good to...
JBENI
04-16-2015 11:11 AM
04-17-2015 10:25 PM
by Wolf4dk
11 419
Am I missing something...
googus
04-11-2015 06:33 PM
04-17-2015 08:01 PM
by avetslawncare
10 546
Hello
sonny54
04-16-2015 09:49 PM
04-17-2015 03:10 PM
by Steve
1 204
Unreal
Chilehead
04-09-2015 09:12 PM
04-17-2015 08:27 AM
by Chilehead
11 570
starting a lawn care...
JBENI
04-14-2015 09:03 AM
04-17-2015 08:03 AM
by JBENI
14 552
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
04-16-2015 07:52 PM
by avetslawncare
23 1,373
New 14 x 7 Enclosed...
whitepropertydetail
04-15-2015 06:46 PM
04-16-2015 03:40 PM
by Steve
1 259
older used dump trucks
SECTLANDSCAPING
09-22-2011 12:33 AM
04-16-2015 12:41 PM
by biglee
21 8,058
Tax Poll
Steve
04-15-2015 02:13 PM
04-15-2015 02:13 PM
by Steve
0 242
lawn care by Aj
aj10261984
04-14-2015 06:50 PM
04-15-2015 01:43 PM
by Steve
2 276
Contact last years...
googus
01-28-2015 08:13 AM
04-15-2015 12:54 PM
by SC93
7 1,273
trying to sign up for...
JBENI
04-14-2015 10:20 AM
04-14-2015 12:11 PM
by Steve
1 754
Charging customers for...
Hard-Body lawn & garden
04-14-2015 07:34 AM
04-14-2015 10:35 AM
by Steve
1 313
New member
Jdlandscaping,LLC
04-11-2015 03:24 PM
04-14-2015 05:45 AM
by Jdlandscaping,LLC
2 334
hello
oasis_greenscapes
04-01-2015 06:18 PM
04-13-2015 12:03 PM
by Steve
8 574
New Member
Greenturion
04-11-2015 02:00 PM
04-13-2015 11:59 AM
by Steve
1 297
Client with...
OldSalt
04-07-2015 09:47 PM
04-13-2015 11:57 AM
by Steve
8 526
Getting rid of "mulched...
Mr. Mow
04-12-2015 04:21 PM
04-13-2015 11:26 AM
by biglee
3 336
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
04-13-2015 11:11 AM
by biglee
7 449
Billing methods
jcurr33
03-26-2015 01:33 PM
04-13-2015 11:07 AM
by biglee
15 955
Landscape Fabric
CurbAppeal1
04-10-2015 03:58 PM
04-13-2015 08:02 AM
by Chilehead
4 379
I lost a long term...
Sprinkler Buddy
09-04-2011 02:24 PM
04-12-2015 04:27 PM
by Mr. Mow
17 4,021
» Popular Tags
ad landscaping aerocore apartment bid apartment lawn care estimate applying auger blowout bob villa bush commercial contract help curb appeal services deliquentaccounts demonstration design ditches door hangers employee problems estimate facebook google growing a lawn care business hardscapes how to hydraulic jobs john deere quik trac landscape landscape services lawn lawn aeration lawn care lawn care busines plan lawn care business seo lawn care business website lawn care business website seo lawn care website lawn care website seo lawn mowing managing a lawn care business marketing marketing secrets more customers business mulch new mower ordinance patio install per hour service profit on employee scag v-ride scripts search engine optimization seo shreaded snow plowing sq ft starting a lawn care business steep lawns theft toro tractor auger trailer mate pro truck new used landscape up sell employee web design website won't return wood wright stander rh www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:13 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 04:13 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy