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: 4
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: 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, 01:20 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, 07:12 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, 11:49 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,752
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: 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 06-19-2010, 11:13 PM
MAKLawnCutter MAKLawnCutter is offline
Senior Member
 
Join Date: Apr 2010
Location: Central FL
Age: 29
Posts: 249
Rep Power: 4
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 online now
Administrator
 
Join Date: May 2003
Posts: 35,752
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: 1,008
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, 07:28 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 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
new to this forum!
mower13126
Yesterday 07:37 PM
Today 02:27 PM
by phlawncare
2 46
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
Today 01:04 PM
by grassdoctore
8 225
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
Today 12:19 PM
by kslawn
19 6,743
I Got Taken...,
Dan Tanner
Today 06:26 AM
Today 11:39 AM
by kslawn
1 44
REO calling
Dan Tanner
04-16-2014 05:03 PM
Today 11:17 AM
by kslawn
11 232
this mower is driving me...
boog
04-17-2014 12:07 PM
Today 10:59 AM
by kslawn
4 125
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
Today 10:25 AM
by grassdoctore
12 354
Customers droping like...
goodtimez
Yesterday 09:53 AM
Today 08:09 AM
by CDLAWNCARE
7 139
Back for this year
xandrew245x
02-21-2014 04:30 PM
Today 07:59 AM
by xandrew245x
14 854
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
Today 07:49 AM
by CDLAWNCARE
4 126
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
Today 04:22 AM
by Tekeda1
17 361
2.5 acre mowing
xandrew245x
Yesterday 06:55 AM
Yesterday 08:57 PM
by xandrew245x
6 112
Best Bulk Mulch delivery...
Steven Virgadamo
Yesterday 09:52 AM
Yesterday 05:34 PM
by Steve
2 57
Steve Virgadamo,...
Steven Virgadamo
Yesterday 09:49 AM
Yesterday 05:08 PM
by Steve
2 53
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
Yesterday 04:51 PM
by Steve
3 91
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
Yesterday 04:47 PM
by Steve
5 181
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 04:41 PM
by Steve
31 1,053
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
Yesterday 04:39 PM
by Steve
9 199
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
Yesterday 04:04 PM
by stevef1201
10 193
leaf removal
tlf59263
04-15-2014 10:00 PM
Yesterday 03:59 PM
by stevef1201
6 172
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 602
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 719
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 100
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 270
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 88
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 608
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 226
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 168
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 302
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 202
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 103
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 285,519
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 427
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-14-2014 10:51 AM
by Steve
8 334
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 429
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 170
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 412
Hello all
Griff20114
04-12-2014 05:08 PM
04-14-2014 09:46 AM
by Steve
1 114
Step by Step Spring Lawn...
WarriorLawnscaping
04-10-2014 07:01 AM
04-14-2014 09:43 AM
by Steve
5 241
Jeff Cowden
jcowden
04-11-2014 07:27 PM
04-14-2014 09:39 AM
by Steve
1 107
Exmark Commercial 30...
Dan Tanner
04-11-2014 05:35 AM
04-14-2014 09:37 AM
by Steve
4 195
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-14-2014 08:04 AM
by acrajchel
21 1,595
Small guy time to get a...
googus
04-08-2014 08:16 AM
04-13-2014 07:18 PM
by A. Kulak Landscaping
9 325
Weekly vs. Bi-weekly
CDLAWNCARE
04-12-2014 01:48 PM
04-13-2014 06:03 PM
by kslawn
9 333
Weed ID help
TwinBrosLC
04-12-2014 10:39 AM
04-13-2014 07:40 AM
by stevef1201
4 167
Lexington, KY
acrajchel
04-07-2014 01:06 PM
04-11-2014 09:49 PM
by acrajchel
1 137
Food Plot Management
BlackRain75
04-11-2014 10:20 AM
04-11-2014 03:51 PM
by Steve
4 135
Estimating a job
acrajchel
04-08-2014 11:07 AM
04-11-2014 03:32 PM
by Steve
6 305
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
04-11-2014 03:25 PM
by Steve
11 1,015
Hello....
SWFloridaLawns
04-10-2014 06:15 PM
04-11-2014 02:28 PM
by Steve
2 130
» Popular Tags
4wd 34'' ads aerator bid butterfly gardens buy charge christmas light hanging christmas lighting client color jet courtesy call craigslist cultivation customers echo escrow exmark ferris first truck florida flower bed cultivation price fundraiser georgia gopherhaul grass grass clarksville gravely holiday holiday lighting how much to charge how to bid lawn care lawn care business book lawn care business podcast lawn care business show leaf leaf removal lighting marketing mow mowing mowing clarksville mulch mulch estimate new buisness new business new start outdoor environments payday payment podcast property management company riding mower savannah scag schedule selling seo social media sprayer starting a business start up lawn care business stihl top dresser toro trailer upsell walker
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:37 PM.


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

All times are GMT -5. The time now is 02:37 PM.

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