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.

Re: "How much profit can a $1mil business make?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 01-09-2007, 05:31 PM
dutchhook
Guest
 
Posts: n/a
Default

Hi,
Your information is correct. Many big firms have profit margins of 2-5%. ALCA used to do yearly surveys of their members and I was shocked to see that the biggest profit margin companies were those under $500,000 (as a percentage). It dropped to something like 3% for companies between 1 and 3 million, then went back up to 5% or something like that for 3 million and up. The cost of depreciation, loss of control of production, theft, interest payments on equipment because of rapid growth, and probably the biggest expense of hiring, training the right individuals. Just one wrong hire can put a company back on it's heels for a year or more.
I know companies in the 2 million dollar range that are today making 5% profit, but when salaries are figured in and perks, they are making more than 20% profit, so you can do it too.
I think somewhere around the $750,000 range a single owner has to add a layer of management. Either a production manager, or sales. That's a big step, and you're sure to lose money or keep profits low for awhile until they're up to speed. The next layer of management seems to be around the 2.5 million dollar level.
Plan well. A successful company needs 1) Meaning. What are we here for? Why are the employees here? Why do people use my service? 2) Creative Thinking and 3) Effective Execution or Effective Production.
I'm sending this to you personally to make sure you get it, then I'm going to post it generally since I don't see the button to make sure that anyone else watching the post gets the message.
Good Luck,

Steve
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 01-09-2007, 05:37 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,982
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Steve,

Do you think most lcos fail to grow because they do not want to manage employees? Or they want to keep the employees they manage to the absolute minimum?

If so, how does one go and make that leap into management? What suggestions do you have for those who shy away from wanting to manage employees?
__________________
- 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.
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

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
What's include in a bid?
ppl
Today 01:19 PM
Today 01:19 PM
by ppl
0 1
Ugliest lawn contest
Steve
02-23-2015 04:17 PM
Today 11:24 AM
by nwgirl
4 319
rock salt
Bradcook21
02-24-2015 11:17 AM
Today 11:12 AM
by jrs.landscaping
25 533
How to obtain more...
winkie61
02-17-2015 08:31 AM
Today 11:05 AM
by nwgirl
4 551
Diesel conversion?
Just for Cuts
Today 10:59 AM
Today 10:59 AM
by Just for Cuts
0 16
I'm Back With The Best...
aduttonater
02-21-2015 01:41 AM
Today 10:44 AM
by ExtremeLawncareServices
16 624
pros and cons on...
Wolf4dk
Today 12:26 AM
Today 10:27 AM
by Chilehead
3 48
Hi from the beautiful...
nwgirl
02-07-2015 06:01 AM
Today 10:23 AM
by nwgirl
4 621
New Website
brian'slawncare
Yesterday 06:35 PM
Today 08:00 AM
by Chilehead
2 48
My Newborn son
avetslawncare
02-27-2015 01:07 PM
Today 07:40 AM
by Sprinkler Buddy
4 94
Online Estimator
acrajchel
Yesterday 05:58 PM
Yesterday 11:32 PM
by Just for Cuts
2 58
Opinions on truck wrap
Truro
02-28-2015 04:21 PM
Yesterday 11:32 PM
by Chilehead
5 144
How to sell annual...
GroPro
02-17-2015 12:31 PM
Yesterday 01:46 PM
by Chilehead
8 594
stubbon people
Bradcook21
02-16-2015 04:25 PM
Yesterday 12:38 PM
by Mr. Mow
42 1,347
price for snow clearing?
Bradcook21
02-25-2015 09:11 PM
02-27-2015 08:54 PM
by Bradcook21
5 209
Facebook
element009
03-23-2011 09:36 AM
02-27-2015 11:37 AM
by ExtremeLawncareServices
52 11,829
Blade sharpener
Just for Cuts
07-04-2014 01:31 PM
02-26-2015 03:43 PM
by Mr. Mow
15 1,763
viking cyclon.
uppercut
01-29-2015 09:12 PM
02-26-2015 02:54 PM
by Steve
5 521
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 01:06 AM
02-26-2015 02:41 PM
by Steve
1 126
Another website update
Chilehead
02-26-2015 11:24 AM
02-26-2015 12:46 PM
by Just for Cuts
3 118
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
02-26-2015 02:44 AM
by ExtremeLawncareServices
5 727
New Lawn Care Service...
rlclawncare123
02-26-2015 12:49 AM
02-26-2015 02:24 AM
by ExtremeLawncareServices
1 134
Finally!
SGL1
02-22-2015 09:46 PM
02-25-2015 10:15 PM
by SGL1
13 472
leaf removal.. mulching...
facework84
08-05-2011 03:26 PM
02-25-2015 08:07 PM
by Steve
5 2,809
How many customers?
SC93
02-25-2015 12:40 AM
02-25-2015 04:59 PM
by SC93
5 249
Irrigation...
charlieallen
02-24-2015 01:16 PM
02-25-2015 02:58 PM
by Steve
6 242
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
02-25-2015 12:46 AM
by SC93
33 2,851
honest opinion please
uppercut
02-17-2015 02:30 AM
02-24-2015 07:12 PM
by homey
10 682
2nd year advice anyone
Bradcook21
02-18-2015 07:00 PM
02-24-2015 05:15 PM
by Bradcook21
14 656
need help
lawnexpers115
02-23-2015 05:36 PM
02-24-2015 02:49 PM
by Steve
3 285
Hello People
nativikee
02-23-2015 07:17 PM
02-24-2015 02:43 PM
by Steve
4 281
New member
qua ke zik 001
02-23-2015 11:24 AM
02-23-2015 03:40 PM
by Steve
1 239
New Video
Sprinkler Buddy
02-22-2015 09:18 PM
02-23-2015 03:19 PM
by Sprinkler Buddy
2 266
need help with SCAG...
apmAkron
02-23-2015 09:14 AM
02-23-2015 01:57 PM
by apmAkron
3 262
which degrees would be...
BLAZIER-1991
02-20-2015 04:46 PM
02-23-2015 01:47 PM
by Steve
9 429
Trouble logging in
avetslawncare
02-21-2015 02:06 PM
02-23-2015 01:44 PM
by Steve
1 594
John Deere Quik Track...
acrajchel
02-20-2015 03:12 PM
02-23-2015 01:40 PM
by Steve
1 297
Trimming and...
joshlawncare
02-15-2015 02:04 PM
02-22-2015 09:48 PM
by SGL1
5 629
where can i post this
zippy-phil
02-17-2015 07:58 PM
02-20-2015 02:02 PM
by Steve
7 513
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
02-19-2015 04:43 PM
by ExtremeLawncareServices
29 2,679
Thumbs up or down?
lawnman1959
02-18-2015 11:40 AM
02-19-2015 01:22 PM
by Chilehead
3 428
Am I growing too fast?
Mattcrump
08-04-2011 11:54 PM
02-19-2015 12:34 PM
by Steve
11 5,226
Say Hello !!!
Steve
03-19-2007 12:18 PM
02-19-2015 12:31 PM
by Steve
1,215 372,244
Mowing 2 acres
Bradcook21
01-05-2015 03:13 PM
02-19-2015 12:23 PM
by Steve
16 1,486
FREE Custom Website...
breadcrumb
01-31-2015 10:58 PM
02-18-2015 01:32 PM
by Steve
5 1,133
Taking a step back
Billy Goat
02-16-2015 07:37 AM
02-18-2015 01:17 PM
by Chilehead
9 609
Employees
stevej
02-17-2015 05:25 PM
02-18-2015 12:47 PM
by Mr. Mow
1 418
Landscapers from hell!!
Chilehead
01-29-2015 03:55 PM
02-17-2015 07:48 PM
by ExtremeLawncareServices
9 1,036
Cannot access your Itune...
winkie61
02-17-2015 10:00 AM
02-17-2015 03:26 PM
by Steve
1 366
Advertising on internet...
Sprinkler Buddy
02-13-2015 01:22 PM
02-17-2015 01:00 PM
by Steve
9 690
» Popular Tags
2wd 4x4 ad landscaping apartment bid apartment lawn care estimate applying blowout bob villa bush commercial contract help deliquentaccounts demonstration ditches door hangers edging employee problems estimate facebook four wheel drive google gopherhaul gravely growing a lawn care business hardscapes how to hydraulic jobs landscape landscape services lawn lawn aeration lawn care lawn care busines plan lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn mowing managing a lawn care business marketing marketing secrets more customers business new mower ordinance patio install per hour service podcast 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 web design website won't return wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:34 PM.


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

All times are GMT -5. The time now is 01:34 PM.

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