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.

Overhead formula complications


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, 06:01 PM
adamsmowing88 adamsmowing88 is offline
Member
 
Join Date: Feb 2010
Location: Northern Michigan
Age: 29
Posts: 61
Rep Power: 6
adamsmowing88 is on a distinguished road
Default Overhead formula complications

I need to know that I am using the right formula. Right now, I am using

Overhead/1400 hrs.(35 weeks)+20/hr(what I am paying myself)

But I have seen all kinds of hours like for example:
Overhead/2000 hrs(50 weeks)
Overhead/1920(48 weeks)

The fact of the matter is that you can only mow 6 months out the year here in Michigan. Now with that being said, I need a formula that I can be accurately with my overhead cost per hour. Because the truck payment, mortgage/rent, don't stop coming in just because I am not working in the winter. Can someone simplistically break this down for me. I know the website has a estimate calculator but I need something that is a little more simple. Thanks!
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, 08:21 PM
CHEESE2009 CHEESE2009 is offline
Dr. Scott - Ruler of the Underworld
 
Join Date: Mar 2009
Location: Switzerland, Grindelwald
Age: 74
Posts: 4,475
Rep Power: 0
CHEESE2009 is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
If you give me your email I will send you a document I have that may explain a simple formula. Just edit it to your preference, & it should keep you on track.
Reply With Quote
  #3  
Old 02-17-2010, 08:26 PM
adamsmowing88 adamsmowing88 is offline
Member
 
Join Date: Feb 2010
Location: Northern Michigan
Age: 29
Posts: 61
Rep Power: 6
adamsmowing88 is on a distinguished road
Default

kennethamonk@gmail.com
thank you
Reply With Quote
  #4  
Old 02-18-2010, 07:36 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,574
Rep Power: 10
Steve has disabled reputation
Default

Why not take the total hours you work per year and divide them by your total overhead expenses?

How does that work out when you do it like that?
__________________
- 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 02-18-2010, 02:05 PM
SuperiorPower
Guest
 
Posts: n/a
Default

You will need to charge $29.71 per hour (for labor alone) during the 1400 hours you work if you intend to pay yourself $20 per hour for the entire year.

It looks like this:

-52 weeks in a year = 2080 hours per year.
-2080 hours x $20 per hour is $41,600 gross income for the year.
-Since you plan to only work 1400 hours, that entire labor has to be absorbed in the 1400 hours. So you divide $41,600 by 1400 = 29.714285714285714 (or $29.71 if rounded down, $29.72 if rounded up)

Now this is ONLY the labor costs, not your total overhead costs. To get a true overhead cost, you need to also figure in your equipment costs, advertising costs, etc. In the next day or so I hope to have something simple to figure all this up.
Reply With Quote
  #6  
Old 02-18-2010, 02:16 PM
ProCut TM
Guest
 
Posts: n/a
Default

hey breeze, shoot me over the doc. to please I'd like to take a look at it. e-mails in my sig below
Reply With Quote
  #7  
Old 02-18-2010, 02:52 PM
adamsmowing88 adamsmowing88 is offline
Member
 
Join Date: Feb 2010
Location: Northern Michigan
Age: 29
Posts: 61
Rep Power: 6
adamsmowing88 is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
Why not take the total hours you work per year and divide them by your total overhead expenses?

How does that work out when you do it like that?
Well, I am moving so i don't know what the going rate is around the area. The thing is I only had at the most 4 yards last year.(I wasn't very serious about it)Also, I didn't really keep track of time either, so I kind of did it to my self. So I guess I when I move, I should call 2-3 companies and have them give me an estimate and find the going rate in that area?
Reply With Quote
  #8  
Old 02-18-2010, 03:15 PM
SuperiorPower
Guest
 
Posts: n/a
Default Here is a simple calculator

Here is a simple calculator. See what you think about this. The data is not necessarily accurate but is simply data to make sure the formulas worked.

Instructions:
1. Start with the first tab on the bottom, Equipment Overhead. Add your equipment names in the red slots, and all the correct figures associated in the green slots. Make sure to place "0" in each green cost slot for each machine you don't have (EXAMPLE: if you don't have more than one trimmer, have no chain saw, etc. type "none" in the red name slot and "0" in each of the green cost slots.)

2. Now go to the next tab, Employee, Admin and Office Costs. Here fill in the labor for each employee (including yourself). Also fill in a good estimate of your advertising costs, office supplies costs, or any other business related costs.

3. Now go to the 3rd tab, Final Values, and see your total overhead from several different perspectives.

**Remember!!** Obey the modification LEGEND or all of the formulas will become corrupt since the formulas depend on data from the other pages to be accurate. DO NOT modify the gray or orange slots!!!!
Attached Files
File Type: xls Simple LCO Overhead estimator.xls (37.0 KB, 103 views)
Reply With Quote
  #9  
Old 02-19-2010, 05:10 PM
ProCut TM
Guest
 
Posts: n/a
Default

search
Reply With Quote
  #10  
Old 02-19-2010, 06:26 PM
adamsmowing88 adamsmowing88 is offline
Member
 
Join Date: Feb 2010
Location: Northern Michigan
Age: 29
Posts: 61
Rep Power: 6
adamsmowing88 is on a distinguished road
Default

thanks you everybody!!! this information is very helpful!!
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
I am not tring to lowball, I have little overhead Leon Lawn Care Marketing & Post your marketing material for review! 17 02-16-2010 11:25 PM
Overhead!! bnclawncare General Business Discussions 21 01-23-2010 04:39 PM
Entering your overhead costs - Online estimator Steve Online Lawn Care Estimator - Help me bid this job 2 04-13-2009 11:49 AM
Calculating overhead equipment costs. Steve General Business Discussions 5 02-08-2009 06:54 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
Yesterday 11:35 PM
by ExtremeLawncareServices
96 11,618
SCAG Tiger Cat DECK...
rower30
08-24-2013 10:07 AM
Yesterday 07:13 PM
by rower30
18 5,029
Your 2015 summer review.
Steve
09-01-2015 11:01 AM
09-03-2015 09:04 PM
by Chilehead
5 203
Sample commercial bid
burtle
09-02-2015 06:02 PM
09-03-2015 10:48 AM
by Steve
1 110
best way to.....
Wolf4dk
09-02-2015 11:35 AM
09-03-2015 06:45 AM
by Chilehead
4 107
John Deere 667a
acrajchel
08-30-2015 10:00 AM
09-02-2015 07:45 PM
by Just for Cuts
5 145
Dane Scag
Steve
08-28-2015 12:29 PM
08-28-2015 12:29 PM
by Steve
0 111
24 and 50 acre cemetery...
grassmasterswilson
08-18-2015 10:09 AM
08-26-2015 02:42 PM
by Steve
13 683
Rookie business question...
WarriorLandscapingCAN
08-05-2015 05:20 PM
08-26-2015 02:33 PM
by Steve
3 474
How to clean an old...
rmccutchan
08-16-2015 05:23 PM
08-26-2015 02:31 PM
by Steve
9 484
how to make customers...
Bradcook21
05-27-2015 05:04 PM
08-26-2015 12:25 PM
by kslawn
19 3,870
Needing a website built
burtle
06-17-2015 09:02 AM
08-25-2015 11:31 AM
by acrajchel
9 2,531
Big mowing job
Bradcook21
07-30-2015 03:57 PM
08-25-2015 11:23 AM
by acrajchel
17 1,106
ZTR Review
Shark1611
05-31-2012 10:42 PM
08-25-2015 11:16 AM
by acrajchel
8 3,808
Hi Everyone
mmays29
08-25-2015 08:16 AM
08-25-2015 11:15 AM
by Steve
3 153
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
08-25-2015 11:08 AM
by acrajchel
11 1,313
Old Business New Owner
Toyman
06-17-2014 08:57 PM
08-25-2015 11:00 AM
by acrajchel
16 1,686
Hi everyone! We're new...
alltrades
08-22-2015 12:46 PM
08-24-2015 10:41 AM
by Steve
2 206
CAn I get some help with...
rootytalbot
08-11-2015 06:14 PM
08-24-2015 10:36 AM
by Steve
12 635
Hi
Wemowjunction
08-16-2015 08:45 PM
08-20-2015 01:46 PM
by Steve
11 471
Drive cable bad?
SGL1
08-10-2015 11:16 PM
08-20-2015 01:41 PM
by Steve
5 429
Hey there everyone
Cole8999
08-16-2015 04:42 PM
08-18-2015 04:35 PM
by Steve
3 298
Help with a truck
bdodson89
04-27-2015 08:15 PM
08-18-2015 11:47 AM
by rmccutchan
7 1,081
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
08-18-2015 07:59 AM
by rootytalbot
7 543
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-17-2015 04:34 PM
by Steve
1,229 406,751
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
08-16-2015 11:42 PM
by rmccutchan
3 659
What's your next...
Steve
05-15-2015 11:54 AM
08-16-2015 11:09 PM
by SC93
16 1,296
New Biz
kufnerins
08-14-2015 05:52 PM
08-14-2015 08:56 PM
by Steve
1 253
Chemical and Fertilizer...
rmccutchan
08-09-2015 10:36 PM
08-13-2015 11:11 PM
by rmccutchan
6 470
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
08-13-2015 02:10 PM
by rootytalbot
12 2,147
Hello all thinking about...
bernie
08-11-2015 04:28 PM
08-13-2015 10:33 AM
by Steve
8 417
Logo Help Font Color
LZLC
08-08-2015 09:26 PM
08-12-2015 03:50 PM
by Steve
4 405
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
08-12-2015 12:30 AM
by Jeff1
20 1,909
My new mower
Chilehead
08-08-2015 09:09 PM
08-11-2015 08:36 PM
by Chilehead
9 602
Thought this was a good...
Just for Cuts
08-06-2015 03:38 PM
08-11-2015 10:54 AM
by Steve
8 574
Plowing pricing
jcurr33
08-08-2015 04:58 PM
08-11-2015 10:51 AM
by Steve
6 611
Should I upgrade my back...
googus
08-07-2015 10:50 AM
08-11-2015 10:44 AM
by googus
7 494
Keeping it clean....
Wolf4dk
08-09-2015 11:31 PM
08-11-2015 06:34 AM
by Chilehead
7 422
I have been rude and...
biglee
06-15-2015 10:11 PM
08-10-2015 09:41 PM
by stallman419
12 2,824
Newbie Saying Hi.
LZLC
08-08-2015 09:22 PM
08-10-2015 11:20 AM
by Steve
1 305
How much do I charge to...
Chris Herrera
08-06-2015 09:30 PM
08-09-2015 11:31 AM
by biglee
2 525
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
08-07-2015 03:26 PM
by Steve
17 1,231
» Popular Tags
ad landscaping advertising aerocore applying bark billy goat brushcutter blowout bob villa bush contract help curb appeal services demonstration design door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care google growing a lawn care business hiring how to hydro increase customers jobs landscape landscaping landscaping training lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance per hour charge per hour service plowing pricing profit on employee roundup scag secrets to landscaping sell the vision seo shell shreaded solo solo backpack sprayer sq ft square foot swzt tree tree pics up sell employee walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:36 AM.


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

All times are GMT -5. The time now is 08:36 AM.

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