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General Business Discussions

A place to talk about general business discussions.
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  #31  
Old 02-04-2009, 06:54 AM
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And yes i am one of the ones that Chuck went out of his way to help in the beginning, and that i will never forget, my lco would not have grown as fast as it has without his help and this site.
Which advice do you feel helped you the most that you could share with newer lawn care business owners?
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  #32  
Old 02-04-2009, 07:38 AM
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Default Calculating overhead

Thanks Hoss. But I am asuming the calculator figures the equipment expense in a fisical year.

I am looking to see what is the best method of doing this. I a fisical year or over the life spand of the equipment. Thanks for the reply.
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  #33  
Old 02-04-2009, 09:52 AM
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Which advice do you feel helped you the most that you could share with newer lawn care business owners?
Well Steve i would have to say:
1) stay stead fast & focused, like Chucks music, say what you mean, & mean what you say.
2) watch every penny
3) Plan,Plan,& do some more planning - Then always have a plan B
4) Make what your doing stand for something better. If you feel what you do, like what you do, take pride in what you do, it will show and every one around you will know it, and thats who the customers want doing there lawn , someone that cares as much as they do about it.
5) Know what you sell!! a big one.

You know there was a storey on the local news here that talked about un-employment and what alot of these people are doing to get by. They said in our state "Florida" that since july 08' there are more new lawncare co. applying for lic. then there has been since 1985, an increase of 122%. that is kinda scary, but remember the cream always floats to the top.
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  #34  
Old 02-04-2009, 12:46 PM
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Originally Posted by bnclawncare View Post
Thanks Hoss. But I am asuming the calculator figures the equipment expense in a fisical year.

I am looking to see what is the best method of doing this. I a fisical year or over the life spand of the equipment. Thanks for the reply.
mower cost $8,000

you work 40 weeks a year for 6 hours a day
that is a total of 1200 hours a season (this is just hypothetical)

so $8000 for the mower you have and another $8000 for the new one in three years (replacement cost)

thats $16000 divided over three years of 1200 hours . . . Stay with me now


$16000.00 divided by 3 years = $5334.00
$5334.00 dived by 1200 hrs per year = $4.50 per hour

that will pay off your mower in three years and also build you up the cash you need to buy a new one
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  #35  
Old 02-05-2009, 04:05 PM
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Default Overhead costs

Thanks DJ. That was what I was looking for. Do you actually put aside the "$4.25" (hypothetical) into like a separate account for equipment? Is this included in your profit dollars? I am struggling with the fine details. What I have always done is been straightforward. Take your gross income, minus all of your expences and what is left is profit dollars. I feel like the when I include my overhead expence, minus true dollars spent on supplies, payroll, etc...I'm not getting a true profit dollar figure. Uncle Sam sees this as profit, unless I spend it on equipment, why shouln't I? Be patient with me please and thanks again for your assistance.
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  #36  
Old 02-05-2009, 11:06 PM
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Thanks DJ. That was what I was looking for. Do you actually put aside the "$4.25" (hypothetical) into like a separate account for equipment? Is this included in your profit dollars? I am struggling with the fine details. What I have always done is been straightforward. Take your gross income, minus all of your expences and what is left is profit dollars. I feel like the when I include my overhead expence, minus true dollars spent on supplies, payroll, etc...I'm not getting a true profit dollar figure. Uncle Sam sees this as profit, unless I spend it on equipment, why shouln't I? Be patient with me please and thanks again for your assistance.
supplies pay roll and even interest paid on loans are all tax deductions . . . Give me a call tomorrow and I will try to get you straightened out . . .Also it is a good idea for every business owner to take some type of accounting class or read a good accounting book

and no steve i don't have one to recommend lol You ask more questions than an attorney . . . gotta love you for it though lol
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  #37  
Old 02-06-2009, 08:40 AM
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And yes i am one of the ones that Chuck went out of his way to help in the beginning, and that i will never forget, my lco would not have grown as fast as it has without his help and this site. Again Thank You Chuck for all your help in the past and i am sure the future
You welcome bro. Glad the information helped you get going so well.
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