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.

Is This Right?


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 06-17-2010, 06:44 PM
weezerguy weezerguy is offline
Junior Member
 
Join Date: Jun 2010
Posts: 7
Rep Power: 5
weezerguy is on a distinguished road
Default Is This Right?

sat down today and figured up all my costs and its kind of scary. Just wondering is this right?


lawn care rate [all where figured under a 960 hour season]

truck: 6000- 6.25/hr
trailer:1000- 1.04/hr
2 trimmers-400-.42/hr
2 blowers-600-.63/hr
advertising-50/month[600 for year] - .63/hr
equipment maintenance [1000/month][6000/season]- 6.25/hr
2 push mowers-400- .42/hr
gas-300/month- 1.88/hr
rider mower 42''-1500-1.57/hr
total: 19.09/hr

company growth profit- 10,000/season-13.89/hr

hourly rate-25/hr

subtotal-57.98/hr
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 06-17-2010, 09:01 PM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 9
picframer will become famous soon enough
Default

Lawn care business tipsLawn Care Business Book
In short no your numbers are way off, costs should be amortized over the life of the equipment, you have basically set up numbers on what you can do in a given period and expect to be debt free within the first year with a profit, this would never fly as a business plan.
__________________
Andy
Halifax, Nova Scotia
Reply With Quote
  #3  
Old 06-18-2010, 02:20 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

Where are you getting a riding mower that will last for $1500? I paid about $2,500 for mine and its still bottom of the line. Anyway you should get a copy of Business plan pro. Its a cool program to help figure out a business plan.
__________________
White Company
Reply With Quote
  #4  
Old 06-19-2010, 08:12 AM
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 jasonw View Post
Where are you getting a riding mower that will last for $1500? I paid about $2,500 for mine and its still bottom of the line. Anyway you should get a copy of Business plan pro. Its a cool program to help figure out a business plan.
I would probably say avg out the the costs over three years and add that to your $25 hr rate. Your obviously not making near $25 if you subtracting costs. If you are using a 1500 mower and its residential, consider a more realistic commercial model, or at least a decent used one. You might not get 960hrs even in on season out of a consumer grade.
Reply With Quote
  #5  
Old 06-19-2010, 12:49 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
Rep Power: 10
Steve has disabled reputation
Default

The thing I wonder about when figuring out your costs is this.

When you amortize the cost of a mower over the length of it is expected life.

Say $6000 over 3 years would be $2000 a year.

After that period of time, you are most likely going to have to replace the mower and take on another $6000 for another 3 years.

So if this is the case, how important is it to amortize when creating a budget like this? How many pieces of equipment are going to last past their amortization period?
__________________
- 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
  #6  
Old 06-19-2010, 09:31 PM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 9
picframer will become famous soon enough
Default

Quote:
Originally Posted by Steve View Post
The thing I wonder about when figuring out your costs is this.

When you amortize the cost of a mower over the length of it is expected life.

Say $6000 over 3 years would be $2000 a year.

After that period of time, you are most likely going to have to replace the mower and take on another $6000 for another 3 years.

So if this is the case, how important is it to amortize when creating a budget like this? How many pieces of equipment are going to last past their amortization period?
It's a numbers game, depending on the value of the equipment amortization here for tax is 1 to 5 years. Can my equipment last longer than 5 years? The tractors and excavators no question, 10 to 15 as I take very good care of them and I buy top of the line, trimmers, blowers etc. I would say 3 to 5 years.

In accounting what is your goal? if to see if you are making a profit a lot of factors go into play, if for financing the numbers game is totally different as is for tax.
__________________
Andy
Halifax, Nova Scotia
Reply With Quote
  #7  
Old 06-20-2010, 12:13 AM
MAKLawnCutter MAKLawnCutter is offline
Senior Member
 
Join Date: Apr 2010
Location: Central FL
Age: 30
Posts: 249
Rep Power: 5
MAKLawnCutter is on a distinguished road
Default

IRS likes to see a growth every three years, as a new business, you arent expected an INCOME (+) within the first 5 years... which is also your DO or DIE period. IF you arent composed enough as a business in 5Yrs, pack it up or work harder.

I estimated to MAKE a business profit on year 4, if im lucky and see a .33+ increase yearly, which isnt bad, by year 4 ill be upto 3 trucks-loaded, 7 FT employees, 4PT employees and the wife being the company secretary to save some change... Seeing as i am still an independent L.L.C. There is NO RUSH to go full corp! I kind of like being strapped for money tho, makes me realize every time i leave a property, i better NOT get a call back, i cant afford the lost time.

Never aim for the heavens when you can barely see the sky.

Matt
Reply With Quote
  #8  
Old 06-20-2010, 01:07 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Seeing as i am still an independent L.L.C. There is NO RUSH to go full corp!
What do you feel is the difference? Do you feel being an llc limits your ability to grow?

What is your view on being a full corp?
__________________
- 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
  #9  
Old 06-21-2010, 02:27 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 robgee05 View Post
I would probably say avg out the the costs over three years and add that to your $25 hr rate. Your obviously not making near $25 if you subtracting costs. If you are using a 1500 mower and its residential, consider a more realistic commercial model, or at least a decent used one. You might not get 960hrs even in on season out of a consumer grade.
Where do you get that figure? I use a consumer grade one rated at a usable life of 2500 hours and thus far I love it. Someone who would get less than a thousand hours from one is clearly not caring for it properly.
Attached Images
File Type: jpg !cid__20091002084954.jpg (48.5 KB, 11 views)
__________________
White Company
Reply With Quote
  #10  
Old 06-21-2010, 08:28 AM
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 jasonw View Post
Where do you get that figure? I use a consumer grade one rated at a usable life of 2500 hours and thus far I love it. Someone who would get less than a thousand hours from one is clearly not caring for it properly.
No offense my friend, but call me when you get to 2500hrs, without replacing the whole motor tranny and deck of the thing. More realistic you may get 600-1000 hrs out of a residential machine.. Anyone with more mechanical experience here like to join in. You can still make $$ with the residential model. If you get 1000hrs out of it @ $1500 your cost to purchase is only $1.50 hr. Where as a $6000 machine you get 3000hrs out of will be $2 an hour. But surely better productivity out of a commercial model. Im a firm believer in starting small with what you need. But I highly doubt youll get 2500 hrs out of a resi model, with out a total rebuild which would cost you more then the mower new. But if you put away $5 and hour with the resi, youll save enough for a new commercial model in no time. LOL

Last edited by robgee05; 06-21-2010 at 08:35 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
This sucks...
Matther777
09-18-2014 05:56 PM
Today 11:56 AM
by achri12
15 3,100
leaf removal
Double J LLC
10-03-2014 05:24 PM
Today 11:08 AM
by achri12
20 2,310
New website
Chilehead
11-20-2014 04:39 PM
Today 10:53 AM
by Just for Cuts
8 180
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
Yesterday 10:49 PM
by Just for Cuts
16 480
Pics for website
tbtigers03
11-21-2014 05:40 PM
Yesterday 10:01 PM
by Just for Cuts
3 109
Peco Bagger
AGPS
11-18-2014 02:20 PM
Yesterday 05:56 PM
by AGPS
9 276
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
Yesterday 02:42 PM
by stevef1201
22 6,094
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
11-21-2014 09:48 PM
by ExtremeLawncareServices
174 13,955
Hello from Kentucky
TRV
09-30-2014 06:42 PM
11-21-2014 09:38 PM
by TRV
6 1,256
Contract or no contract?
TRV
11-20-2014 09:18 PM
11-21-2014 09:33 PM
by TRV
3 143
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
11-21-2014 08:02 PM
by stevef1201
4 304
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
11-21-2014 07:05 PM
by acrajchel
13 359
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 95
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
11-21-2014 06:32 PM
by Steve
7 201
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
11-21-2014 06:07 PM
by acrajchel
15 460
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 917
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 469
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,832
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,428
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,175
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 740
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 510
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 452
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 311
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,345
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 236
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 500
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,581
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,686
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,800
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,657
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 408
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 607
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 308
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 366
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,312
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 589
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 497
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
11-10-2014 01:25 PM
by Steve
2 330
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 293
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 306
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 539
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 351
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 405
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 443
hello, new to this site
tonyorwig
10-31-2014 10:49 PM
11-04-2014 02:24 PM
by tonyorwig
3 636
Aloha from Hawaii.
Gary R
11-02-2014 12:44 AM
11-03-2014 03:02 PM
by Steve
1 543
Pavers
crieg122
10-28-2014 03:49 PM
10-31-2014 01:49 PM
by Steve
6 853
Hi Steve From West...
Mr. Mow
10-21-2014 02:59 PM
10-31-2014 12:56 PM
by Steve
5 1,172
Got my first lawn job...
SGL1
06-11-2014 10:19 PM
10-31-2014 10:53 AM
by Max Wagner
30 3,285
» Popular Tags
4x4 apartment bid apartment lawn care estimate applying article marketing auger bid blades bob villa care charge commercial decorating deliquentaccounts demonstration ditches employee problems exmark ferris four wheel drive gopherhaul grass gravely growing a lawn care business hardscapes hiring how much to charge how to installation john deere quik trac landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website mechanic monthly mulch mulch estimate new buisness new mower patio install podcast pto reo running a business scag scripts search engine optimization seo shell snow snow plowing sprayer starting a business steve stihl theft toro toro grand stand trailer mate pro tree turfgrass consulting walk behind walker
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:46 PM.


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

All times are GMT -5. The time now is 04:46 PM.

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