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, 01:15 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 7
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, 01:26 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 5
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, 01:57 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 7
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, 02:13 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,207
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, 02:15 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 5
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, 02:17 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 7
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, 02:27 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 7
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, 07:15 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,207
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, 10:52 AM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,008
Rep Power: 7
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, 11:22 AM
JP Landscaping JP Landscaping is offline
Senior Member
 
Join Date: Feb 2010
Location: Nebraska
Posts: 213
Rep Power: 5
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 09:11 AM
Making less than dad did Steve General Business Discussions 1 06-28-2007 05:08 PM
$300 business decision BSDeality General Business Discussions 2 07-12-2003 01:30 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Mow and leave cleanup bid
SGL1
Today 07:28 PM
Today 07:28 PM
by SGL1
0 1
Need input on a bid
phlawncare
Yesterday 08:51 PM
Today 06:25 PM
by phlawncare
2 70
Will summer ever come
ExtremeLawncareServices
Today 08:27 AM
Today 05:20 PM
by Sprinkler Buddy
4 55
Building credit
Matther777
07-27-2014 05:20 PM
Today 05:18 PM
by Matther777
8 145
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
Today 04:23 PM
by stevef1201
16 658
Formulas Used
BaileynSamsMum
Today 06:40 AM
Today 02:52 PM
by BaileynSamsMum
2 53
From Concord NC
SouthernRootsLawnCare
07-26-2014 02:34 PM
Today 02:28 PM
by Steve
3 77
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
Today 02:28 PM
by Steve
4 138
Echo Edger 'Neutral'
WesleySnips
07-25-2014 05:28 PM
Today 02:25 PM
by Steve
4 129
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
Today 02:11 PM
by Steve
4 110
New from Texas
Livingston Lawn Care
07-25-2014 11:17 AM
Yesterday 01:29 PM
by Steve
3 138
Left handed edging with...
SGL1
07-23-2014 08:59 PM
Yesterday 07:39 AM
by SGL1
15 335
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-27-2014 10:14 PM
by WesleySnips
5 346
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
07-27-2014 01:21 PM
by ExtremeLawncareServices
80 4,665
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
07-27-2014 08:16 AM
by Just for Cuts
7 193
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-26-2014 04:39 PM
by BLC7
7 334
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-25-2014 06:31 PM
by mattthelawnguy
13 511
You know it;s gonna be a...
stevef1201
07-25-2014 08:50 AM
07-25-2014 01:34 PM
by Steve
1 100
Customer letters
kslawn
07-23-2014 06:17 AM
07-25-2014 01:20 PM
by Steve
5 217
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
07-24-2014 07:09 PM
by SGL1
29 1,290
Need help determining...
Jbss861
07-20-2014 02:33 PM
07-24-2014 01:11 PM
by Steve
13 400
Should I ?
googus
07-22-2014 04:06 PM
07-24-2014 12:10 PM
by Steve
4 231
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
07-24-2014 06:46 AM
by kslawn
15 926
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
07-24-2014 06:38 AM
by kslawn
3 228
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
07-24-2014 06:28 AM
by kslawn
3 280
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
07-23-2014 05:37 PM
by Just for Cuts
9 324
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
07-23-2014 12:42 PM
by Steve
3 223
new to me box truck
jrayb39667
03-06-2014 10:20 PM
07-23-2014 12:40 PM
by Steve
15 1,438
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
07-23-2014 11:48 AM
by Steve
4 256
Overspray?
stevef1201
07-21-2014 04:20 PM
07-23-2014 11:39 AM
by Steve
3 166
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 301
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 680
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 534
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 315
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 646
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 208
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 197
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 763
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 1,082
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 808
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 734
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 320,900
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,759
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 478
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 388
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 849
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 585
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 598
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,934
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 590
» Popular Tags
4wd advertisement article marketing auger bid butterfly gardens charge christmas lighting christmas light service courtesy call customers decorating estimate exmark ferris first truck fundraiser gopherhaul grass gravely hills holiday holiday decorating holiday lighting how much to charge introduction john deere quik trac lawn lawn care lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf lighting marketing monthly mow mulch mulch price new buisness new mower organize outdoor environments payment podcast property management company pto reo scag schedule scripts seo snow starting a business starting a lawn care business start up lawn care business steve stihl theft toro toro grand stand trailer trimmer rack walker winter winter services zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:36 PM.


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

All times are GMT -5. The time now is 07:36 PM.

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