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 > Just starting your lawn care or landscaping business? > Starting a lawn care business.

Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

Decision making time


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 02-17-2010, 02:15 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 8
jasonw is on a distinguished road
Default Decision making time

Ok so I just got done with my taxes, I'm a little disappointed but oh well. A lot of things I thought I could get away with I can not such as writing a personal lone from myself to my business, Thats a big no no so for those of you that are planning on doing that don't bother. Anyway My numbers were rather sad. I went in Saturday to the tax person almost $200 in the red. This was my first year so this much was expected but after making the adjustments I ended up just under $800 in the black. Bad bad move because now I owe the state $207 but oh well. Now it is decision making time. Was it really all worth it? I am not really sure. I am a bit lost on it right now. Do I continue this year in hopes business will be better or just cave in and keep my 9-5? I mean $800 revenue for the year wont even pay my headlight replacement bill LOL Whats everyone's thoughts on this?
__________________
White Company
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 02-17-2010, 02:26 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 6
MountainViewGreenskeeper is on a distinguished road
Default All or nothing baby

Lawn care business tipsLawn Care Business Book
Depends on if you love what you do or not. plus if you pull through this economy with ur business still in tact you will be that much stronger when things look up. I dont know just my 2 cent and Im finally starting mine.
__________________
Colton
Mountain View Greenskeeper proudly offering yard care in the East Valley of Arizona.
Reply With Quote
  #3  
Old 02-17-2010, 02:57 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 8
jasonw is on a distinguished road
Default

Quote:
Originally Posted by MountainViewGreenskeeper View Post
Depends on if you love what you do or not. plus if you pull through this economy with ur business still in tact you will be that much stronger when things look up. I dont know just my 2 cent and Im finally starting mine.
I am not sure if I really enjoy the work but I do enjoy working for myself. As far as pulling through I tend to agree. Recessions make millionaires for those who are able to hold on and invest there money and stay the course but A problem I have is knowing how things work and I know at least in this area lawn care is not a million dollar business and I wander if its worth it to continue investing my private funds into something that may not make it anyway. I mean we all know its anyone's guess. A business can fold in the blink of an eye in this environment and should mine fold then I am out everything I put in, sure I have some nice equipment to care for my own yard but the cash money interests me more than having nice equipment for my yard. Under normal circumstances things should start to be more self dependent in one year which I am approaching, I started in June of last year. Maybe just maybe I will give this until the end of 2010 and then jump ship if my numbers don't significantly improve.
__________________
White Company
Reply With Quote
  #4  
Old 02-17-2010, 03:13 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,007
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I went in Saturday to the tax person almost $200 in the red.
As you look back over last year and analyze it, what is your view on why this was the case?
__________________
- 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
  #5  
Old 02-17-2010, 03:15 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 6
MountainViewGreenskeeper is on a distinguished road
Default

Quote:
Originally Posted by jasonw View Post
Under normal circumstances things should start to be more self dependent in one year which I am approaching, I started in June of last year. Maybe just maybe I will give this until the end of 2010 and then jump ship if my numbers don't significantly improve.
Sounds like you already know what you want to do then. witch is good cause I would hate to hear of someone jumping ship in the same business im tryn to get into. my cusin does more install but but still sad to hear people leaven the industry.
__________________
Colton
Mountain View Greenskeeper proudly offering yard care in the East Valley of Arizona.
Reply With Quote
  #6  
Old 02-17-2010, 03:17 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 8
jasonw is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
As you look back over last year and analyze it, what is your view on why this was the case?
Steve. The biggest thing was the personal load I wrote to the company for equipment purchase. Once we deducted all the payments from the finances it put me almost $800 in the black. Being in the black is good but 80,000 in the black would have been better.
__________________
White Company
Reply With Quote
  #7  
Old 02-17-2010, 03:27 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 8
jasonw is on a distinguished road
Default

Quote:
Originally Posted by MountainViewGreenskeeper View Post
Sounds like you already know what you want to do then. witch is good cause I would hate to hear of someone jumping ship in the same business im tryn to get into. my cusin does more install but but still sad to hear people leaven the industry.
Trust me this business is nothing like I expected it to be, No way near as profitable and way way WAY more competitive. I did this work when I was 12yo and I knew going into this the cost for professional services has gone way up, I now get $50 for mowing a lawn where as at 12yo I got maybe $10 still with that you factor in a $3,000 truck, about $8,000 in equipment and retard that will scalp a lawn for $2 and its so very hard to put a dent in those initial $11,000 or so bucks to get started. Droping that much is not necessary but its the rout I took, I am starting to wish I stayed more conservative until I know where I stood. Now if I bail on it I have 11K of a truck and equipment I will most likely never use. This is not my first rodeo so I know how the business world works but I was amazed at how many things can just blind side you in this business. Must watch your butt at all times and never underestimate how powerful organization and a good filing system are. I know I had much more I could have claimed agents my profits that could have offset the entire tax bill for this year but I was horable at organizing things. For example I can wright off the hours my weed eater and all my other equipment was in use on top of the cost of the equipment. Lucky for me I keep a tally of hours for the oil change schedule but its little stuff like that that we don't realize. I mean do you really know exactly how many hours you ran your weed whacker last year? Cant be an even number ether or the IRS will assume its a guess and audit you. I can not believe how many tax laws are agents small business but at the same time if you keep awesome records and know the system you can take the IRS to the bank during tax time. A good example is we only brought in 86K last year but had 51K in wright offs bringing our taxable income to 35K That part was awesome. We made 86K but only paid taxes on that of someone making minimum wage.
__________________
White Company
Reply With Quote
  #8  
Old 02-18-2010, 08:15 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,007
Rep Power: 10
Steve has disabled reputation
Default

Quote:
This is not my first rodeo so I know how the business world works but I was amazed at how many things can just blind side you in this business.
What other things did you feel blind sided you? I am sure a lot of member who havent gotten started yet are reading this and now thinking about all these issues.

Quote:
A good example is we only brought in 86K last year but had 51K in wright offs bringing our taxable income to 35K That part was awesome.
It sounds like in the bigger picture you took in a good amount of money. Is there any possibility you could cut back on expenses this year to improve your income?
__________________
- 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
  #9  
Old 02-18-2010, 11:52 AM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 8
jasonw is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
What other things did you feel blind sided you? I am sure a lot of member who havent gotten started yet are reading this and now thinking about all these issues.



It sounds like in the bigger picture you took in a good amount of money. Is there any possibility you could cut back on expenses this year to improve your income?
Steve as far as my income, I was actually 20K short but only 800 of that was from lawn care. I have many sources of income so $85,700 of that was not from lawn care. As far as things that blind sighted me hmmm let me think, this is a good one. Ok first off my truck. You remember my last rig? I know you do because you used it in an add LOL When my vehicles started dieing on me I had to do something. I had a car but nothing to haul equipment with so it was ether lose my clients and toss away all that hard work or go shopping. 3K later I have my truck. That was a huge unexpected expense albeit a great deal I got. Another one would have to be the jackass clients. We all get them. If you haven't yet you will. I will be damned if I am going to mow a law for $5 just not happening and the fixed income old timers kinda run you into the ground when they here it will cost them $100 per monthly or more. I almost jumped ship because one of these you may remember. Another good thing back to the equipment expense is like me most of us start out with the equipment we already have and use on our yards. Those old mowers work great but once you start over heating them on tall lawns several times a day they will cave in fast. I lost a mower and WW back to back so that sucked up another $400. Remember if you don't have the cash to replace the equipment then you are out of business. I had a great client who allowed the use of there mower when mine broke to finish there lawn. This was good but it was there very first service and looked way bad for me as a business owner. Another good one is I was hired to cut a fire break, the client had piles of limbs all over his property, he needed them shredded, I gave an estimate which he agreed to and said he would call me before the weekend to schedule it. I rushed out and spent a small fortune on a shredder and equipment and all and never got the call. I purchased the shredder used and it only worked one time in my yard and still sits out in the bone yard broken so now I have a broken shredder and never made a dime. Its really hard to list everything. The best advice I can give is just sit and think of anything that can go wrong and bet your butt it will go wrong. Plan for it all to go wrong and have a drink when it doesn't. I didn't plan on anything going wrong but thank god I have money to spare to get me out of these situations.
__________________
White Company
Reply With Quote
  #10  
Old 02-18-2010, 12:22 PM
JP Landscaping JP Landscaping is offline
Senior Member
 
Join Date: Feb 2010
Location: Nebraska
Posts: 213
Rep Power: 6
JP Landscaping is on a distinguished road
Default profits

at $50 average lawn, sounds to me like you should be making good profit. I think, (an accountant's opinion) your expenses are too high. And remember, the first year or two of starting a business (in general) show the least amount of net profit due to the start up costs. Once they are paid off, you will be left with basically all profits because, like you found out, you can write off the usage of your equipment as depreciation.

It doesn't necessarily have to be hours used. lets say you have a trimmer you bought for $200 and you plan to use it for 5 years until it's unusable and worth $0. Then you could deduct $40 each year. But if you do have a timer or can log your hours, then it is easier. lets say you have a mower you can use for 1000 hours before it's worth $0 and you paid $10000 for it. then you could deduct $10 per hour used. (figurative numbers)

Talk to your accountant and run over your numbers. he can help you decide if it is a good investment or not. If your company cleared $800 this year out of the $1100 you invested (800/11000=7.27%) 7.27% is not a bad return on investment if you consider what the banks are paying to have your money sitting there. Of course this also depends on how much you paid yourself.
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
Full time job to full time lawn care. Making the jump. Steve General Business Discussions 6 01-18-2012 10:11 AM
Making less than dad did Steve General Business Discussions 1 06-28-2007 06:08 PM
$300 business decision BSDeality General Business Discussions 2 07-12-2003 02:30 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Ground Guys
Pattersonllc
Yesterday 07:49 PM
Yesterday 10:00 PM
by Just for Cuts
1 30
Starting a legit...
Hard-Body lawn & garden
Yesterday 08:19 PM
Yesterday 08:42 PM
by CurbAppeal1
1 24
How do YOU charge your...
Hard-Body lawn & garden
03-02-2015 09:28 PM
Yesterday 08:19 PM
by Bradcook21
3 102
Small dovetail truck...
ExtremeLawncareServices
Yesterday 07:47 PM
Yesterday 07:47 PM
by ExtremeLawncareServices
0 22
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
Yesterday 07:33 PM
by CurbAppeal1
25 7,749
Front page google...
CurbAppeal1
Yesterday 06:04 PM
Yesterday 07:28 PM
by CurbAppeal1
4 47
Opinions on truck wrap
Trupro
02-28-2015 04:21 PM
Yesterday 07:20 PM
by CurbAppeal1
18 355
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
Yesterday 06:47 PM
by BladesofSteel
14 1,990
Doug With Blades Of...
BladesofSteel
03-03-2015 08:40 PM
Yesterday 05:44 PM
by BladesofSteel
2 57
hoa bid
Bradcook21
Yesterday 07:12 AM
Yesterday 04:49 PM
by Steve
2 75
Incentives for potential...
rmccutchan
02-02-2015 12:09 AM
Yesterday 04:06 PM
by Steve
13 855
Kawasaki Control Assembly
rsanchez1203
03-03-2015 04:21 PM
Yesterday 04:04 PM
by Steve
10 163
All NEW BRASS Black Rain...
BlackRain75
03-03-2015 10:07 PM
Yesterday 02:33 PM
by Sprinkler Buddy
1 50
Moss in grass in the...
tk4454
05-17-2013 12:19 AM
Yesterday 09:08 AM
by Moki
4 1,605
Jesse with Curb Appeal...
CurbAppeal1
03-03-2015 01:44 PM
03-03-2015 06:48 PM
by CurbAppeal1
12 151
New guy from Columbia, SC
holymoly
03-03-2015 05:27 PM
03-03-2015 06:10 PM
by Steve
1 46
Diesel conversion?
Just for Cuts
03-02-2015 10:59 AM
03-03-2015 06:08 PM
by Just for Cuts
4 120
stubbon people
Bradcook21
02-16-2015 04:25 PM
03-03-2015 05:56 PM
by Steve
45 1,509
What's include in a bid?
ppl
03-02-2015 01:19 PM
03-03-2015 05:53 PM
by Steve
9 210
New Website
brian'slawncare
03-01-2015 06:35 PM
03-03-2015 05:48 PM
by Steve
8 174
New Lawn Care Business
S&Z Lawncare
03-02-2015 04:13 PM
03-03-2015 05:39 PM
by Steve
3 125
My Newborn son
avetslawncare
02-27-2015 01:07 PM
03-03-2015 05:23 PM
by joshlawncare
7 174
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
03-03-2015 02:50 PM
by ExtremeLawncareServices
14 2,047
rock salt
Bradcook21
02-24-2015 11:17 AM
03-03-2015 01:26 PM
by jrs.landscaping
30 673
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
03-03-2015 10:38 AM
by brian'slawncare
9 816
pros and cons on...
Wolf4dk
03-02-2015 12:26 AM
03-02-2015 10:14 PM
by ExtremeLawncareServices
6 152
price for snow clearing?
Bradcook21
02-25-2015 09:11 PM
03-02-2015 08:32 PM
by Bradcook21
7 295
Ugliest lawn contest
Steve
02-23-2015 04:17 PM
03-02-2015 04:57 PM
by Steve
5 382
Hi from the beautiful...
nwgirl
02-07-2015 06:01 AM
03-02-2015 04:45 PM
by Steve
5 668
Online Estimator
acrajchel
03-01-2015 05:58 PM
03-02-2015 03:50 PM
by Steve
3 136
How to obtain more...
winkie61
02-17-2015 08:31 AM
03-02-2015 11:05 AM
by nwgirl
4 608
I'm Back With The Best...
aduttonater
02-21-2015 01:41 AM
03-02-2015 10:44 AM
by ExtremeLawncareServices
16 689
How to sell annual...
GroPro
02-17-2015 12:31 PM
03-01-2015 01:46 PM
by Chilehead
8 641
Facebook
element009
03-23-2011 09:36 AM
02-27-2015 11:37 AM
by ExtremeLawncareServices
52 11,883
Blade sharpener
Just for Cuts
07-04-2014 01:31 PM
02-26-2015 03:43 PM
by Mr. Mow
15 1,808
viking cyclon.
uppercut
01-29-2015 09:12 PM
02-26-2015 02:54 PM
by Steve
5 555
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 01:06 AM
02-26-2015 02:41 PM
by Steve
1 159
Another website update
Chilehead
02-26-2015 11:24 AM
02-26-2015 12:46 PM
by Just for Cuts
3 148
New Lawn Care Service...
rlclawncare123
02-26-2015 12:49 AM
02-26-2015 02:24 AM
by ExtremeLawncareServices
1 179
Finally!
SGL1
02-22-2015 09:46 PM
02-25-2015 10:15 PM
by SGL1
13 510
leaf removal.. mulching...
facework84
08-05-2011 03:26 PM
02-25-2015 08:07 PM
by Steve
5 2,846
How many customers?
SC93
02-25-2015 12:40 AM
02-25-2015 04:59 PM
by SC93
5 289
Irrigation...
charlieallen
02-24-2015 01:16 PM
02-25-2015 02:58 PM
by Steve
6 273
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
02-25-2015 12:46 AM
by SC93
33 2,907
honest opinion please
uppercut
02-17-2015 02:30 AM
02-24-2015 07:12 PM
by homey
10 726
2nd year advice anyone
Bradcook21
02-18-2015 07:00 PM
02-24-2015 05:15 PM
by Bradcook21
14 711
need help
lawnexpers115
02-23-2015 05:36 PM
02-24-2015 02:49 PM
by Steve
3 316
Hello People
nativikee
02-23-2015 07:17 PM
02-24-2015 02:43 PM
by Steve
4 317
New member
qua ke zik 001
02-23-2015 11:24 AM
02-23-2015 03:40 PM
by Steve
1 269
New Video
Sprinkler Buddy
02-22-2015 09:18 PM
02-23-2015 03:19 PM
by Sprinkler Buddy
2 292
» Popular Tags
2wd 4x4 ad landscaping aerocore apartment bid apartment lawn care estimate applying auger billy goat brushcutter bush contract help curb appeal services deliquentaccounts design ditches door hangers employee problems estimate facebook foreman four wheel drive google gopherhaul gravely growing a lawn care business how to jobs john deere quik trac landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing managing a lawn care business marketing marketing secrets mulch new mower per hour service podcast pricing pto secrets to landscaping seo shell snow plowing sq ft starting a lawn care business steep lawns theft toro toro grand stand tractor auger trailer trailer mate pro up sell employee web design website website design winterization wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:57 AM.


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

All times are GMT -5. The time now is 12:57 AM.

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