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: 6
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: 5
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 online now
Administrator
 
Join Date: May 2003
Posts: 36,516
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: 6
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: 6
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: 5
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: 6
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: 5
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 online now
Administrator
 
Join Date: May 2003
Posts: 36,516
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: 6
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
12 Years in Business!
Chilehead
Yesterday 08:07 AM
Yesterday 11:08 PM
by Chilehead
2 84
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
Yesterday 11:06 PM
by Chilehead
9 291
Lawn Care business...
crieg122
Yesterday 01:23 PM
Yesterday 06:56 PM
by Matther777
2 96
raking leaves ?
robert8509
10-22-2014 09:19 PM
Yesterday 06:40 PM
by robert8509
7 185
hey everyone
robert8509
10-22-2014 08:16 PM
Yesterday 06:16 PM
by robert8509
5 142
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
Yesterday 05:55 PM
by biglee
13 401
My Newest Toy (B.P....
Dan Tanner
Yesterday 05:50 PM
Yesterday 05:50 PM
by Dan Tanner
0 53
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Yesterday 03:33 PM
by TNTurf
10 821
Hi from SoCal
Jmoney
Yesterday 11:29 AM
Yesterday 12:51 PM
by Steve
1 67
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
Yesterday 12:33 PM
by Steve
5 519
Pda
stevef1201
10-18-2014 02:05 PM
Yesterday 06:12 AM
by ringahding1
4 347
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
Yesterday 05:13 AM
by ringahding1
5 240
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
10-22-2014 01:27 PM
by Steve
6 419
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
10-22-2014 01:23 PM
by Steve
3 393
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
10-22-2014 01:19 PM
by Steve
1 168
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-22-2014 08:51 AM
by ringahding1
12 1,534
first year update
cmdlawncare
08-12-2014 05:41 PM
10-22-2014 07:47 AM
by ringahding1
4 1,351
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 669
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 521
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
10-21-2014 01:19 PM
by ExtremeLawncareServices
158 11,412
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 274
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 1,828
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,333
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 242
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 314
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 763
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,216
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 499
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 341
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 679
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 983
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,350
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 709
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 340,240
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 430
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,529
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,537
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,628
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 567
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 726
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 567
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 911
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,567
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 876
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,690
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 1,103
Truck craft dump bed...
ExtremeLawncareServices
10-04-2014 08:41 PM
10-10-2014 11:35 AM
by Steve
7 1,010
First Time River Rock...
berryjam
10-09-2014 06:09 PM
10-10-2014 11:08 AM
by Steve
2 650
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-10-2014 11:03 AM
by Steve
1 644
Question?what should I...
dalvan0
09-24-2014 11:10 PM
10-09-2014 05:58 PM
by kslawn
28 2,180
» Popular Tags
4wd apartment bid apartment lawn care estimate applying bob villa bush charge christmas commercial deliquentaccounts demonstration exmark ferris first truck georgia gopherhaul gravely hardscapes hills holiday honda how much to charge how to hydraulic labor cost landscape services lawn lawn care lawn care busines plan lawn care business book lawn care business podcast 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 lighting brass outdoor lights managing a lawn care business marketing mechanic monthly mowing mulch mulch price new business patio install podcast property management company push versus ride savannah scag scag v-ride seo shell snow plowing starting a business starting a lawn care business start up lawn care business stihl sulky toro tractor auger trailer mate pro tree truck new used landscape walker won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:12 AM.


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

All times are GMT -5. The time now is 03:12 AM.

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