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, 05:44 PM
weezerguy weezerguy is offline
Junior Member
 
Join Date: Jun 2010
Posts: 7
Rep Power: 6
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, 08:01 PM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 11
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, 01:20 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,010
Rep Power: 9
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, 07:12 AM
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 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, 11:49 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,928
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, 08:31 PM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 11
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 06-19-2010, 11:13 PM
MAKLawnCutter MAKLawnCutter is offline
Senior Member
 
Join Date: Apr 2010
Location: Central FL
Age: 31
Posts: 249
Rep Power: 7
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, 12:07 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,928
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, 01:27 AM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,010
Rep Power: 9
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, 07:28 AM
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 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 07:35 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
Did this job free to...
JJand M Lawncare
05-02-2016 02:33 PM
Today 10:07 AM
by Steve
4 81
Correct way to quote a...
WarriorLandscapingCAN
05-02-2016 11:52 AM
05-03-2016 10:59 AM
by Steve
1 58
How to tell Cust. to...
GeeGood
04-09-2008 09:55 PM
05-02-2016 02:45 PM
by JJand M Lawncare
13 5,229
Having an issue with...
Mr. Mow
04-27-2016 03:58 PM
04-28-2016 05:04 AM
by Sprinkler Buddy
2 129
Hello From Virginia
JJand M Lawncare
04-25-2016 01:02 PM
04-27-2016 05:20 PM
by Steve
5 162
knowledge is Key
Greg'slawnandlandscape
04-23-2016 02:23 AM
04-25-2016 02:40 PM
by Steve
2 150
Hello from Calgary
Freshcut
04-22-2016 06:10 PM
04-25-2016 02:38 PM
by Steve
1 136
Echo Bed Redefiner...
NPM_LLC
04-12-2016 10:54 AM
04-22-2016 06:15 PM
by Freshcut
4 337
Has anyone done a garden?
Brian3137
03-28-2016 10:42 AM
04-22-2016 04:42 PM
by biglee
13 9,786
What would you charge?
markty
04-18-2016 03:28 PM
04-22-2016 09:01 AM
by chris2500hd
6 322
Replaced Mower Engine
Sprinkler Buddy
04-15-2016 06:21 AM
04-19-2016 11:03 AM
by Sprinkler Buddy
6 276
Hello from Oklahoma
Ron Hall
03-24-2016 06:59 PM
04-16-2016 03:51 AM
by Ron Hall
9 9,486
Laying down some stripes
MATTNAPIER89
04-11-2016 09:55 PM
04-14-2016 11:55 PM
by Steve
3 361
Find out what business...
MATTNAPIER89
04-11-2016 09:58 PM
04-13-2016 12:32 PM
by MATTNAPIER89
2 304
Hello my name is Matt
MATTNAPIER89
04-11-2016 09:46 PM
04-13-2016 12:58 AM
by Steve
1 260
How to drop some...
nickeckes
04-11-2016 01:07 AM
04-12-2016 05:22 PM
by Steve
4 334
Trash Receptacle for a...
tannerduncan
04-12-2016 05:02 PM
04-12-2016 05:19 PM
by Steve
1 239
Small Project Lawn
tannerduncan
03-31-2016 08:21 PM
04-12-2016 05:16 PM
by Steve
7 9,364
Please Help! Bidding...
Dorali
02-15-2016 12:02 PM
04-06-2016 01:08 AM
by Steve
36 13,103
Hello
pbcleff
04-05-2016 07:45 PM
04-06-2016 12:35 AM
by Steve
1 432
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:08 PM.


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

All times are GMT -5. The time now is 04:08 PM.

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