What can be done now?

[mburse1977]

I started this business up a month ago and may have run into being maxed out all ready. I have a new account coming up that may put me at 25 yards a day. Did not expect to grow this fast and was wounding what to do now. The plain was to build up equipment and hire people next year when i have the extra equipment to do so. No i might be maxed out and have advertisements out there i can not stop they are all ready in the customers hands. Do i go into massive debt to buy new equipment and hire crews with no capital no so more debit.Do not like this idea. Wait and out right turn down new customers another idea i will not like doing.Make arrangements to sell these new accounts to other company's for a fee and if so whats a good fee for give away customers that would be nice to keep. Not that this is a bad thing but one dose not expect to go from broke to over night success so one dose not pain for this.How fast should this business grow and did this happen to a lot? Should i have thought about this before i started the company? I know it helps and if worse comes to worse i will hope my sales skills sucked and the ads i have out there are not that good and i can sit on the accounts i now have a grow next year but if now what would you do in the spot?

__________________
WestBank Lawn Care LLC

http://westbanklawncare.com/

[robgee05]

Lawn care business tips

Originally Posted by mburse1977 I started this business up a month ago and may have run into being maxed out all ready. I have a new account coming up that may put me at 25 yards a day. Did not expect to grow this fast and was wounding what to do now. The plain was to build up equipment and hire people next year when i have the extra equipment to do so. No i might be maxed out and have advertisements out there i can not stop they are all ready in the customers hands. Do i go into massive debt to buy new equipment and hire crews with no capital no so more debit.Do not like this idea. Wait and out right turn down new customers another idea i will not like doing.Make arrangements to sell these new accounts to other company's for a fee and if so whats a good fee for give away customers that would be nice to keep. Not that this is a bad thing but one dose not expect to go from broke to over night success so one dose not pain for this.How fast should this business grow and did this happen to a lot? Should i have thought about this before i started the company? I know it helps and if worse comes to worse i will hope my sales skills sucked and the ads i have out there are not that good and i can sit on the accounts i now have a grow next year but if now what would you do in the spot? Well Id like to say congrats first. How were you advertising? How do your prices compare with competitors. You may want to start raising prices for new customers. What kind of equipment are you using, will a bigger/faster mower help. 25 cuts is a lot of work a day for one guy. GL Rob

[picframer]

What does your business plan say?

I worked in banking for over 14 years at a very senior level, the killer of small business in my experience is receivables and poor cash management, manage your growth, I even struggle at times with 30 years experience, just take a deep breath and take it slow.

[JP Landscaping]

you might be able to sub out work to guys who are mowing for the summer but don't really have a business going. I see on craigslist all the time of guys who have zero turn mowers or mowing equipment willing to mow for lawn companies. You can take a % of the income and next year when you have the ability to expand, you can take the accounts with your own crew.

[Steve]

Very interesting situation!

Are you comfortable with the prices you are charging or do you feel you need to be making more out of each customer?

This could be effecting your ability to grow.

If you can, share with us some of your insight on that.

[mburse1977]

This is not the problem i am charging the standard in the area to cut lawns and even get more the customer always pays more than the invoice is so i am getting a avg of 35 to 40 per yard of 1500 square feet are about 30 min mowing time with push mower.Just never thought i would grow this fast planed on doing it a little slower but when given the chance can not turn it down. I will just have to sub out to others accounts i get that are new and keep up with this new contract. I will cut and new advertisements out for now and start them up when i have new equipment and more employees.Just can not turn down a big contract like this its too good and money in the back if they pay on time that is which they should they have a sub payment system in place.

Originally Posted by Steve

Very interesting situation!

Are you comfortable with the prices you are charging or do you feel you need to be making more out of each customer?

This could be effecting your ability to grow.

If you can, share with us some of your insight on that.

[Steve]

Are you doing this full time now or is it part time for you?

If it is part time, what kind of transition plan do you have in your mind to make that jump to full time?

[mburse1977]

Originally Posted by Steve

Are you doing this full time now or is it part time for you?

If it is part time, what kind of transition plan do you have in your mind to make that jump to full time?

Part time plain on going full time next year after i get about 50,000 in clients set up.

[Steve]

Have you figured out yet how many customer would be needed in order to hit the $50,000 a year goal?

Have you thought about hiring someone to do the trimming and blowing? Perhaps hiring a local teenager thats out of high school for the summer would speed up the amount of time spent at each property. Pay him minimum wage, or maybe a little more than that, $8/hour? You said it takes you about 30 min each to mow, so maybe you can cut that down to 20 min each with some help.

If you were cutting 25 lawns a day, at 20 min a piece, it will take you about 8.5 hours to mow a day, that not including drive time.

If you stay at 30 min a lawn, it takes you 12.5 hours a day to mow, not including drive time.

So, if you payed your help $8/hour, and it takes a total of 8.5 hours to mow, that would be $68 a day for help. If you make $35 to $40/yard, as you stated, that means you bring home $875-$1,000 a day. (minus expenses)

Looks like to me that spending $68 a day for help would be worth it. It would save you 4 hours of mowing each day.

Just my thoughts, keep us posted on what your final decision will be.