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.

need help


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 03-31-2010, 09:02 PM
CFD192 CFD192 is offline
Member
 
Join Date: Nov 2009
Posts: 38
Rep Power: 5
CFD192 is on a distinguished road
Default need help

I am in need of some help!

Here is my situation. I right now have 10 yards totaling $500 a week. All this yards are done by myself with once a week help(roughly $80 payout). I get several odds and in with these yards mulch and etc.

My question is right now, I have just started, gotten my sole prop. and haven't purchased insurance or any of my permits and licensing. I have been offered a business for $10,000. With the business comes an additional 26 yards($900 to $1000 a week), trailer, ZTR mower, two weedeater and leaf blower, and several misc tool. This business is about an hour from where I live, so roughly I can make two trips on one tank of gas. I have a friend who lives there that has another mowing business of his own, with that, he would give me his 8 yards($350 a week) if I employeed him.

So the scenario is what other operating costs would I have? Does anybody have a rough figure of want liability insurance a month, permits, fuel for travel and mowers, workers compensation and if they thought this would be a good decision or should I just stick with what I have and try to expand in my hometown? Also is there any other costs that I might be forgeting or ones that I could do without? Do I need workers compensation or not?

Here is all I got so far trying to figure: Hire my friend as foremen of the one crew at $15 an hour, and add on one employee with him for $9. Then have a helper with me at $10. 16 hours of work for a split of 22 yards per crew. Weekly income $1850- employee payroll of 544= $1306 a week. So what I am asking is, of that 1306 what else should I take out: Maintenance price?, insurance? and what else? If anybody could provide me with some monthly break downs that would be great!
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 03-31-2010, 10:05 PM
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

Lawn care business tipsLawn Care Business Book
out of those $10,000 how much is for the lawn contracts and how much is for equipment?

are those lawns under contract or no contract?

to those 1306 you need to subtract your overhead which is different for everyone but for sure your insurance, payroll expenses, self employment tax(about 15.3% from net income), license fees, gas, maitenance for all equipment, depreciation of equipment, Advertising, administration expenses (time it takes you to do books)...etc.

I think that you can get way more than 26 customer's with $10,000 to invest.

I would suggest instead of buying, to expand on your own. Print out 3000 professional looking door hangers and pass them out door to door. Hire help if you need to pass them out. with this, I think you can gain those extra 25 or so customers and this can be done with less than $500

good luck though
Reply With Quote
  #3  
Old 04-01-2010, 03:49 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,540
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Here is my situation. I right now have 10 yards totaling $500 a week. All this yards are done by myself with once a week help(roughly $80 payout). I get several odds and in with these yards mulch and etc.
Quote:
Here is all I got so far trying to figure: Hire my friend as foremen of the one crew at $15 an hour, and add on one employee with him for $9. Then have a helper with me at $10. 16 hours of work for a split of 22 yards per crew. Weekly income $1850- employee payroll of 544= $1306 a week. So what I am asking is, of that 1306 what else should I take out: Maintenance price?, insurance? and what else? If anybody could provide me with some monthly break downs that would be great!
When I look at this, I see a simple business going towards a messy direction.

My view is you would be amazed at all that can go wrong with such a plan.

First off, why is he selling the business? How are the properties priced? You might find out that they are underpriced and he is losing money. When you go there to start servicing them, you may realize you need to increase the prices to make a profit and the customers may drop you.

The place is an hour away?

What is about this plan that is enticing to you?

What have you been doing so far to get the customers you have now and how much do you feel you spent to get them?

$10,000 is a lot of cash, so I do wonder where you would get the most bang from your buck.

Tell me some of your thoughts on 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
  #4  
Old 04-01-2010, 06:32 AM
CFD192 CFD192 is offline
Member
 
Join Date: Nov 2009
Posts: 38
Rep Power: 5
CFD192 is on a distinguished road
Default

Right now, I paid $3500 for the yards I have now, which is 10. In the area I live, there is several lawncare businesses and I have done some advertising and haven't received any customers. Competetion is pretty tight here. The other one has the 26 customers, has the equipment, and the gentlemen is a good friend of the friend of mine. He is aged and ready to get out of the business due to age(60 years old). His yards are over priced compared to mine, in my eyes. I price most of mine at $35 and he has several same size yards at $55. Plus there is several other yards in that area that are up for bid and other yards that my friend said another person is trying to get rid of. I am personally not into alot of advertising. Don't know!
Reply With Quote
  #5  
Old 04-01-2010, 12:40 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

I would very quickly run away from that deal. It sounds like a deal but people dont generally sell profitable businesses. Sounds to be like something is up. I also just did the math. Not including anything ells you would need to deduct like maintenance and gas and insurance and taxes and the million other things if you go about the plan as you stated it below you would be making $12.25 per hour for yourself and putting nothing back into the business. If you like me use the 70/30 ration you would be making $2.42 per hour. Can you pay your bills with that. I reread and double checked my math and as far as I know its correct. You take your 1850 per week subtract you payroll which equals a total of $34 per hour time 8 hours a day times 5 days per week. what you come out with is your weekly revenue. Divide that by 5 days per week and then by 8 hours per day, then subtract the 70% reinvestment and you come out to a take home pay as the business owner of $2.42 per hour. The good news is you may not be taxed on such as small wage, the bad news is you would be better off flipping burgers. My best advice is be very very careful about hiring people you dont need. I did that and tossed away far to much money on payroll. My employ sat pretty all winter while the business struggled. Now he is still on lay off and I have no plans to call him back to work until the business can support it.
__________________
White Company
Reply With Quote
  #6  
Old 04-01-2010, 07:33 PM
CFD192 CFD192 is offline
Member
 
Join Date: Nov 2009
Posts: 38
Rep Power: 5
CFD192 is on a distinguished road
Default

Jason,

Not to sure about your math. I would only be working my employees a total of 16 hours in a week! one crew at $15 an hour ($240/week) and $9 (144). My crew would have myself and one other person at $10 an hour(160)... bringing the employee payout to 1306 left... So 1306 by 4 weeks $5224 a month. Out of that I estimated $200 insurance, $600 fuel/maintenance, $800 a month for taxes, bringing my new total to $3600 a month income for myself. 3600 / 4 weeks = 900 divided by 16 hours equals 56$ an hour or slightly less than that if you count hours for payroll and such!
Reply With Quote
  #7  
Old 04-01-2010, 08:16 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,540
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I have done some advertising and haven't received any customers.
What kinds of things have you done thus far?

Quote:
I am personally not into alot of advertising.
Why do you feel this is the case? Do you find yourself handing out business cards to everyone you know? Do you let your neighbors all know you are in business?

Quote:
If you like me use the 70/30 ration you would be making $2.42 per hour.
Can you tell us how you came up with this theory? Why does 70% need to be re-invested?
__________________
- 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
  #8  
Old 04-02-2010, 01:32 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 CFD192 View Post
Jason,

Not to sure about your math. I would only be working my employees a total of 16 hours in a week! one crew at $15 an hour ($240/week) and $9 (144). My crew would have myself and one other person at $10 an hour(160)... bringing the employee payout to 1306 left... So 1306 by 4 weeks $5224 a month. Out of that I estimated $200 insurance, $600 fuel/maintenance, $800 a month for taxes, bringing my new total to $3600 a month income for myself. 3600 / 4 weeks = 900 divided by 16 hours equals 56$ an hour or slightly less than that if you count hours for payroll and such!
That comes out to 16.8 per hour after reinvesting into your business. Dont be fooled. Without a reinvestment it will be doomed for failure, Its only a matter of time. What kind of employees are you getting for 16 hours per week? Hopefully you are not attracting poor work ethic that will hurt your business. I made that mistake by hiring a family member who well lets be honest was a lazy *** and figured he was getting paid by the hour so the more hours he took to do the job the more he made. Needless to say he is no longer and employee. I averaged $140 per hour last year when I worked but work was sketchy, not daily or stable at all and a good share of my cash went to a worthless employee and the latest greatest shinny new equipment. I am taking a different approach this year. I guess you can say live and learn.
__________________
White Company
Reply With Quote
  #9  
Old 04-02-2010, 01:34 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 jasonw View Post
That comes out to 16.8 per hour after reinvesting into your business. Dont be fooled. Without a reinvestment it will be doomed for failure, Its only a matter of time. What kind of employees are you getting for 16 hours per week? Hopefully you are not attracting poor work ethic that will hurt your business. I made that mistake by hiring a family member who well lets be honest was a lazy *** and figured he was getting paid by the hour so the more hours he took to do the job the more he made. Needless to say he is no longer and employee. I averaged $140 per hour last year when I worked but work was sketchy, not daily or stable at all and a good share of my cash went to a worthless employee and the latest greatest shinny new equipment. I am taking a different approach this year. I guess you can say live and learn.
BTW almost forgot. I would not even mow my own lawn for $16.80 per hour. Aim higher.
__________________
White Company
Reply With Quote
  #10  
Old 04-02-2010, 01:38 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 kinds of things have you done thus far?



Why do you feel this is the case? Do you find yourself handing out business cards to everyone you know? Do you let your neighbors all know you are in business?



Can you tell us how you came up with this theory? Why does 70% need to be re-invested?
Steve. My first job in the area where I live was at our local Radio Shack. The owner of the store was a very accomplished business man and a good friend of mine. He explained the 70/30 split to me. Its one of the only things I remember from way back then but basically he said for a business to survive you MUST reinvest profit back into the business to grow it. Other wise you are spinning your wheels. A fail safe number is 70/30 meaning 30% of every dollar is your take home pay and $.70 from every dollar goes back into the business. It is then used for payroll, taxes, rent or lease, paying back creditors, buying inventory and saving for growth. The ratio can be changed of course as a service business is not the same as a retail business. If you are like me you have no creditors so maybe 60/40 will work, who knows. I still with the 30/70 because I really dont care and dont miss the money I am reinvesting. You see I am not in this to spend a buck to make a buck. There are some principles in business that are the same no matter what the trade. We have all seen in this very forum what happens when some of the basics are not followed. I am very guilty of it as well. If you ask me the 70/30 ratio is one of those very very important principles.
__________________
White Company

Last edited by jasonw; 04-02-2010 at 01:42 AM.
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
hello, new to this site
tonyorwig
Yesterday 09:49 PM
Yesterday 11:10 PM
by biglee
1 49
Lawn Care business...
crieg122
10-23-2014 01:23 PM
Yesterday 10:29 PM
by ExtremeLawncareServices
18 818
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 10:08 PM
by ExtremeLawncareServices
161 12,156
Pavers
crieg122
10-28-2014 02:49 PM
Yesterday 12:49 PM
by Steve
6 304
Client won't pay...
WesleySnips
10-30-2014 02:53 PM
Yesterday 12:00 PM
by Steve
6 227
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
Yesterday 11:56 AM
by Steve
5 621
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
Yesterday 09:53 AM
by Max Wagner
30 2,580
Gie-review / What's new...
ExtremeLawncareServices
10-25-2014 09:19 AM
Yesterday 09:30 AM
by ExtremeLawncareServices
7 519
Business Name
sanchez5
10-28-2014 11:55 PM
Yesterday 05:51 AM
by ringahding1
10 356
"Price...
Mr. Mow
10-30-2014 03:21 PM
Yesterday 05:48 AM
by ringahding1
3 199
Help a brother...
tbtigers03
09-28-2014 11:41 AM
Yesterday 05:41 AM
by ringahding1
15 1,998
sod job
SGlawncare
10-30-2014 08:21 PM
10-30-2014 08:21 PM
by SGlawncare
0 51
Difference between lawn...
sanchez5
10-29-2014 04:20 PM
10-30-2014 02:08 PM
by Steve
2 226
My Newest Toy (B.P....
Dan Tanner
10-23-2014 05:50 PM
10-29-2014 12:26 PM
by Steve
6 577
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-28-2014 11:08 PM
by SGlawncare
4 939
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-28-2014 02:51 PM
by Steve
1,193 341,232
Business Cards
crieg122
10-25-2014 12:03 PM
10-28-2014 02:37 PM
by crieg122
4 453
So how do you guys...
Mr. Mow
10-26-2014 07:55 AM
10-28-2014 04:56 AM
by Billy Goat
2 388
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
10-27-2014 10:36 PM
by SGlawncare
12 1,305
new to the forum
madmedic8575
10-24-2014 02:52 PM
10-27-2014 12:14 PM
by Steve
1 408
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
10-26-2014 10:59 AM
by stevef1201
13 776
Leaf removal
madmedic8575
10-24-2014 04:14 PM
10-26-2014 07:45 AM
by Mr. Mow
5 544
raking leaves ?
robert8509
10-22-2014 09:19 PM
10-25-2014 12:09 PM
by biglee
10 680
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
10-25-2014 11:46 AM
by crieg122
6 671
hey everyone
robert8509
10-22-2014 08:16 PM
10-24-2014 11:07 PM
by robert8509
7 569
12 Years in Business!
Chilehead
10-23-2014 08:07 AM
10-23-2014 11:08 PM
by Chilehead
2 486
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
10-23-2014 05:55 PM
by biglee
13 826
Hi from SoCal
Jmoney
10-23-2014 11:29 AM
10-23-2014 12:51 PM
by Steve
1 448
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-23-2014 12:33 PM
by Steve
5 920
Pda
stevef1201
10-18-2014 02:05 PM
10-23-2014 06:12 AM
by ringahding1
4 748
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
10-22-2014 01:27 PM
by Steve
6 814
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
10-22-2014 01:23 PM
by Steve
3 775
first year update
cmdlawncare
08-12-2014 05:41 PM
10-22-2014 07:47 AM
by ringahding1
4 1,765
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 1,059
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 918
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 647
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 2,241
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,744
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 611
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 683
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 1,144
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,685
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 866
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 719
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 1,067
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 1,365
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,769
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 1,076
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 795
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,941
» Popular Tags
4wd aerocore apartment bid apartment lawn care estimate applying article marketing bid billy goat brushcutter blades bush charge collections subcontractor decorating deliquentaccounts ditches employee problems equipment rental estimate exmark ferris first truck foreman georgia gopherhaul gravely growing a lawn care business honda how much to charge husqvarna hydraulic installation introduction landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website marketing mechanic monthly mulch mulch price new business new mower ordinance podcast reo running a business scag scag v-ride search engine optimization seo shreaded snow snow plowing starting a business start up lawn care business steep lawns steve stihl theft of services toro trailer truck new used landscape walker won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:36 AM.


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

All times are GMT -5. The time now is 06:36 AM.

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