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.

Looking at a business for sale?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 05-27-2010, 07:56 PM
walkerlawncare09's Avatar
walkerlawncare09 walkerlawncare09 is offline
Member
 
Join Date: Jan 2009
Location: Indiana
Posts: 55
Rep Power: 8
walkerlawncare09 is on a distinguished road
Default Looking at a business for sale?

I found and ad for a business for sale that would be a good way for me to build up my business to where id like to be. I've read some other posts about buying a established lawn care business. But I just wanted some more input.

The main thing id like to know is what types of things should I look for and ask the seller.

Any information would be greatly appreciated.

Thanks,
Eric
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 05-27-2010, 09:58 PM
JP Landscaping JP Landscaping is offline
Senior Member
 
Join Date: Feb 2010
Location: Nebraska
Posts: 213
Rep Power: 7
JP Landscaping is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
ask:

What is for sale?
- the customer list and/or equipment

How many of the customers are on contracts and how long are the contracts?

Why is the business up for sale?

what percentage of net income is the sale price of the business?

How much is the owner paying himself?
Reply With Quote
  #3  
Old 05-28-2010, 08:21 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,977
Rep Power: 10
Steve has disabled reputation
Default

Those are good questions to ask. They will give you a better feel for what is going on with the business now.

People don't sell a business unless there is a reason. Sometimes that reason is a bad reason for a future owner.

Keep us posted on what you find out.
__________________
- 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 05-29-2010, 04:43 AM
walkerlawncare09's Avatar
walkerlawncare09 walkerlawncare09 is offline
Member
 
Join Date: Jan 2009
Location: Indiana
Posts: 55
Rep Power: 8
walkerlawncare09 is on a distinguished road
Default

Thanks for the advice, im waiting to hear back from the guy I will keep you all posted on what comes of it.
Reply With Quote
  #5  
Old 05-30-2010, 05:48 PM
walkerlawncare09's Avatar
walkerlawncare09 walkerlawncare09 is offline
Member
 
Join Date: Jan 2009
Location: Indiana
Posts: 55
Rep Power: 8
walkerlawncare09 is on a distinguished road
Default

The business is up for sale for $75,000.

Equipment is 2001 dodge 2500 pickup, two hustler 60'' mowers 450-600hrs,walk behind, two push mowers, two blowers, two trimmers. 18ft trailer.

40 accounts with an average of $6,000-$8500 monthly gross. No customers are on contract but says they will stay as long as the job is good and they are easy to work for.

Reason for selling, going on to another career path.

1/3 cost is equipment 2/3 is accounts. Seems high for the equipment at that rate. I figure at 6,000 monthly at 30 weeks mowing accounts bring in 45,000 making the equipment 30,000 worth (way to high)...and at 8500 a month 63,500 which seems alot more reasonable to me.

So i really dont know what to do. It would be a huge leap for myself.
Reply With Quote
  #6  
Old 05-30-2010, 06:03 PM
JP Landscaping JP Landscaping is offline
Senior Member
 
Join Date: Feb 2010
Location: Nebraska
Posts: 213
Rep Power: 7
JP Landscaping is on a distinguished road
Default

this is what I would offer:

Find the market value of the equipment plus up to $15000 for the accounts.

If 1/3 of cost is machines then it comes out to $25000 plus the $15000 for the accounts, I would offer a max of $40,000.

Because none of the accounts are on contract, I would not pay for the accounts in full up front. I would have to ask him to take monthly payments because you are not sure they will stay with you. essentially you would be paying an average of $375 (15000/40) for each account.

In short, I believe you can start up a lawn care business and get 40 accounts for much less than $40,000. More of something like 5-8 grand.
Reply With Quote
  #7  
Old 05-30-2010, 07:42 PM
walkerlawncare09's Avatar
walkerlawncare09 walkerlawncare09 is offline
Member
 
Join Date: Jan 2009
Location: Indiana
Posts: 55
Rep Power: 8
walkerlawncare09 is on a distinguished road
Default

Thanks for the insight.

After doing all the numbers and everything several times over, I had come to the conclusion myself that it would be better to just build up to it myself so I wouldnt have that high amount of overhead lingering over me without assurance that I would keep the accounts. And the profit margin by building it up on my own will come much faster and with much less stress I would imagine.
Reply With Quote
  #8  
Old 05-30-2010, 09:14 PM
robgee05 robgee05 is offline
Member
 
Join Date: Mar 2010
Location: newfield nj
Posts: 95
Rep Power: 7
robgee05 is on a distinguished road
Default

Quote:
Originally Posted by walkerlawncare09 View Post
Thanks for the insight.

After doing all the numbers and everything several times over, I had come to the conclusion myself that it would be better to just build up to it myself so I wouldnt have that high amount of overhead lingering over me without assurance that I would keep the accounts. And the profit margin by building it up on my own will come much faster and with much less stress I would imagine.
When he says different career path it definitely sounds like hes not making the money he needs or says. I would ask to see books. He may have went in over his head. How old our these hustlers. Seems odd to have 2 60 inch machines for 40 accounts. For about 20k you should have no problem getting all that equipment (just 1 used hustler) and 40 accounts with a little advertising and some word of mouth with good service. As the saying seems to go from most of the bigger guys here. Buy what you need when u need it. As far as buying customers I would be real leery without a contract on them, unless its someone you know and trust.
Reply With Quote
  #9  
Old 05-30-2010, 09:39 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,977
Rep Power: 10
Steve has disabled reputation
Default

Quote:
When he says different career path it definitely sounds like hes not making the money he needs or says.
Isn't it fascinating how the answer to this question can be very telling?

I agree with this. Why would you change careers if your business was running smoothly? It be interesting to hear what he was going to try next and what about this industry had turned him off. Also how long he had been running it.
__________________
- 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
  #10  
Old 05-31-2010, 09:38 AM
walkerlawncare09's Avatar
walkerlawncare09 walkerlawncare09 is offline
Member
 
Join Date: Jan 2009
Location: Indiana
Posts: 55
Rep Power: 8
walkerlawncare09 is on a distinguished road
Default

Well I do know the different career path was due to him getting ready to graduate college. I guess to go into the profession he went to school for?!
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
Business Card Sale -5000 Cards!- 696 Signs Promote your products or services 11 07-23-2010 03:22 PM
Lawn Business for Sale Cheap SprinklerRepair Starting a lawn care business. 0 03-22-2009 05:20 PM
Shirt Sale AMW Graphics Truck & Trailer Sign Design, silk screened apparel & uniform discussion 6 09-16-2008 09:41 AM
For Sale AMW Graphics Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 4 08-16-2007 10:20 AM
Lost a sale tiedeman Lawn Maintenance / Lawn Renovation 2 02-19-2007 01:42 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Is it too late?
Cpadgett
05-28-2016 09:10 AM
Today 12:49 PM
by SC93
9 480
Spot checked by...
Just for Cuts
06-28-2016 02:34 PM
Yesterday 05:14 PM
by Steve
2 48
Chemical Applications
acrajchel
06-24-2016 06:44 PM
Yesterday 05:11 PM
by Steve
3 90
3 Applications or 5...
stansg1fresh
02-18-2013 12:02 PM
Yesterday 05:05 PM
by Steve
5 1,436
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
06-28-2016 08:11 PM
by mowandblow1980
21 886
Great Arborist Ladder
SGL1
06-04-2016 09:56 AM
06-28-2016 08:04 PM
by mowandblow1980
11 423
Newbie
Jhoell
06-25-2016 03:28 AM
06-28-2016 02:11 PM
by Chilehead
2 73
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-28-2016 11:02 AM
by Brownieboy
1,253 438,305
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
06-28-2016 08:36 AM
by Steve
13 260
Business Overload
Chilehead
05-06-2016 09:27 PM
06-27-2016 09:14 PM
by Chilehead
19 802
Firefighter gone Lawn...
Firehouselawn@hotmail.com
03-10-2016 04:50 PM
06-24-2016 07:26 PM
by acrajchel
9 10,122
Exmark Turf Tracer
acrajchel
02-01-2014 11:34 AM
06-24-2016 07:23 PM
by acrajchel
5 2,151
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-24-2016 06:59 PM
by acrajchel
7 3,053
Ybravo 25 mowers
SGL1
06-11-2016 09:52 AM
06-21-2016 03:44 PM
by acrajchel
5 307
Help a Brother Out -...
Hedgemaster
01-23-2012 04:19 PM
06-17-2016 08:28 AM
by SGL1
94 34,505
anyone interested in a...
GoGreenerKS
06-16-2016 01:00 PM
06-17-2016 02:58 AM
by SC93
4 182
Prolin
rmccutchan
05-21-2016 04:53 PM
06-16-2016 05:28 PM
by acrajchel
3 337
Laying new grass, Sod...
WarriorLandscapingCAN
05-23-2016 10:07 AM
06-16-2016 05:27 PM
by acrajchel
2 328
Upgraded to a new mower
Stevenor92
05-17-2016 08:17 PM
06-16-2016 05:22 PM
by acrajchel
9 558
How can I fix my...
WarriorLandscapingCAN
06-10-2016 07:47 PM
06-16-2016 05:19 PM
by acrajchel
2 243
Need a lil help
Cpadgett
06-05-2016 09:51 AM
06-16-2016 05:17 PM
by acrajchel
5 377
help with sole...
greenbuds
03-24-2016 12:21 PM
06-16-2016 05:01 PM
by acrajchel
4 9,779
New Member from...
tiptoppmanager
06-15-2016 07:39 AM
06-15-2016 03:18 PM
by SC93
2 179
Brand new fish pond
Flynn landscaping 2016
06-12-2016 09:53 AM
06-13-2016 11:21 AM
by Steve
1 157
Whats up??
Cpadgett
05-27-2016 10:57 AM
06-06-2016 08:46 PM
by Cpadgett
11 526
New Member from Texas
NathanR
06-02-2016 06:13 PM
06-03-2016 09:17 PM
by SC93
7 338
Edging Fad...
Tree geek
05-10-2016 11:29 PM
06-03-2016 07:02 PM
by SGL1
3 513
To mow weekly or Biweekly
WarriorLandscapingCAN
05-11-2016 04:09 PM
06-03-2016 06:42 PM
by SGL1
11 800
Your Time Lawn Care
yourtimelawncare
05-31-2016 01:12 PM
06-02-2016 10:11 PM
by SC93
2 295
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:41 PM.


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

All times are GMT -5. The time now is 01:41 PM.

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