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.

Re: "How much profit can a $1mil business make?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 01-09-2007, 05:31 PM
dutchhook
Guest
 
Posts: n/a
Default

Hi,
Your information is correct. Many big firms have profit margins of 2-5%. ALCA used to do yearly surveys of their members and I was shocked to see that the biggest profit margin companies were those under $500,000 (as a percentage). It dropped to something like 3% for companies between 1 and 3 million, then went back up to 5% or something like that for 3 million and up. The cost of depreciation, loss of control of production, theft, interest payments on equipment because of rapid growth, and probably the biggest expense of hiring, training the right individuals. Just one wrong hire can put a company back on it's heels for a year or more.
I know companies in the 2 million dollar range that are today making 5% profit, but when salaries are figured in and perks, they are making more than 20% profit, so you can do it too.
I think somewhere around the $750,000 range a single owner has to add a layer of management. Either a production manager, or sales. That's a big step, and you're sure to lose money or keep profits low for awhile until they're up to speed. The next layer of management seems to be around the 2.5 million dollar level.
Plan well. A successful company needs 1) Meaning. What are we here for? Why are the employees here? Why do people use my service? 2) Creative Thinking and 3) Effective Execution or Effective Production.
I'm sending this to you personally to make sure you get it, then I'm going to post it generally since I don't see the button to make sure that anyone else watching the post gets the message.
Good Luck,

Steve
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 01-09-2007, 05:37 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,816
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Steve,

Do you think most lcos fail to grow because they do not want to manage employees? Or they want to keep the employees they manage to the absolute minimum?

If so, how does one go and make that leap into management? What suggestions do you have for those who shy away from wanting to manage employees?
__________________
- 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
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
Hello everyone!!!
1newkirk05
Yesterday 03:16 PM
Yesterday 11:51 PM
by SC93
4 59
Best two stroke oil
Greg_TopYardServices
02-08-2016 07:53 PM
Yesterday 09:38 PM
by Chilehead
7 89
Tine Rake Detaching vs...
wigglesworth
Yesterday 05:32 PM
Yesterday 07:43 PM
by Steve
1 32
Help Spread the word...
Sprinkler Buddy
12-02-2015 08:41 AM
Yesterday 07:15 PM
by Steve
16 1,241
Finding open bids?!?
C&DPropertyManagement
02-07-2016 01:48 AM
Yesterday 07:11 PM
by Steve
3 99
back surgery
Bradcook21
01-28-2016 08:51 PM
Yesterday 01:06 AM
by Steve
13 333
hello all
romanlandscape
01-29-2016 03:46 PM
02-07-2016 10:20 AM
by Bradcook21
6 209
Lawn Care Book Ranked #1
Steve
02-06-2016 12:36 AM
02-06-2016 12:36 AM
by Steve
0 94
Hi
Sellers Lawn Care
02-02-2016 01:48 PM
02-05-2016 08:03 AM
by Sellers Lawn Care
4 162
Collecting payments from...
Niagara Mowing
02-03-2016 05:21 PM
02-05-2016 08:00 AM
by Niagara Mowing
7 215
SMS assist? The good,...
jcurr33
01-27-2016 10:24 PM
02-04-2016 11:53 PM
by Steve
5 236
I need some help...
Anise
02-04-2016 01:39 PM
02-04-2016 11:51 PM
by Steve
3 126
Customers dodging the...
Rocky
11-06-2015 06:22 AM
02-04-2016 03:41 AM
by C&DPropertyManagement
7 1,495
Offering a "Trial"...
wybut076
02-01-2016 06:27 PM
02-03-2016 08:26 PM
by Just for Cuts
7 249
Iowa Caucus Predictions?
Steve
02-01-2016 06:31 PM
02-03-2016 12:40 AM
by Steve
1 108
Laying White River Rock
DiamondLawnCare
02-01-2016 08:27 PM
02-03-2016 12:17 AM
by Steve
1 128
Networking for a...
jcurr33
01-30-2016 09:26 PM
02-01-2016 06:27 PM
by Steve
4 197
Customer giving a 1099?
apmAkron
01-27-2016 07:22 PM
01-31-2016 08:55 PM
by Chilehead
6 263
happy to be here
redrobin
01-29-2016 10:45 AM
01-31-2016 08:44 PM
by Steve
1 144
Thought's on an "E-Z...
jcurr33
01-27-2016 10:48 PM
01-31-2016 08:38 PM
by Steve
4 231
Changes
Knaubone
01-30-2016 10:56 PM
01-31-2016 08:31 PM
by Steve
1 128
Thoughts on this Exmark...
googus
01-28-2016 04:24 PM
01-28-2016 08:09 PM
by Chilehead
1 149
1st year in
jcurr33
10-18-2015 05:07 PM
01-28-2016 07:49 PM
by Chilehead
6 4,145
Need opinion on zero...
Mr. Mow
01-24-2016 05:42 PM
01-28-2016 07:41 PM
by Chilehead
10 363
Opinion on liquid vs...
Bradcook21
01-25-2016 02:03 PM
01-28-2016 07:38 PM
by Chilehead
9 312
Finding property size
Gageslawncare
01-25-2016 11:08 AM
01-28-2016 12:05 PM
by Gageslawncare
10 315
Tiger TG 2661 Commercial...
lawnman1959
01-25-2016 08:12 PM
01-27-2016 07:57 PM
by Just for Cuts
5 250
Spouse as a dependent?
Steve
01-26-2016 01:51 AM
01-27-2016 10:44 AM
by Chilehead
3 208
Hello All
C&DPropertyManagement
01-23-2016 12:21 PM
01-26-2016 01:24 AM
by Steve
1 183
Credit Cards - What's in...
Shark1611
06-16-2015 04:04 PM
01-23-2016 03:43 PM
by C&DPropertyManagement
17 7,692
Start My Own Business?
mowandblow1980
01-12-2016 08:43 PM
01-19-2016 07:00 PM
by Steve
12 640
State of the nation 2016.
Steve
01-12-2016 12:05 AM
01-19-2016 06:57 PM
by Steve
6 389
little help? first big...
Brian3137
12-31-2015 12:39 PM
01-19-2016 06:54 PM
by Steve
23 1,086
Hi everybody...
Greg_TopYardServices
01-14-2016 08:10 AM
01-19-2016 02:47 PM
by SC93
12 464
What's your next...
Steve
05-15-2015 12:54 PM
01-17-2016 08:48 PM
by Homeland unlimited
25 7,930
Plow controller problems
scaypa
01-12-2016 05:49 PM
01-16-2016 10:46 AM
by scaypa
4 300
Say Hello !!!
Steve
03-19-2007 12:18 PM
01-15-2016 07:23 PM
by tannerduncan
1,244 428,118
Pricing issue
Mr. Mow
07-07-2015 07:15 AM
01-15-2016 11:20 AM
by djlandscaping06
23 5,424
New College Course
Dr. D
01-14-2016 01:45 PM
01-14-2016 05:35 PM
by Steve
1 214
Yelp
Shark1611
01-13-2016 10:00 AM
01-14-2016 05:32 PM
by Steve
4 274
New to the forum from...
Doug Green
01-12-2016 12:23 PM
01-14-2016 08:34 AM
by Doug Green
2 254
Facebook advertising
Just for Cuts
12-13-2015 08:49 AM
01-13-2016 10:20 PM
by Just for Cuts
12 937
Choosing local business
Doug Green
01-12-2016 12:29 PM
01-13-2016 06:12 PM
by Steve
2 419
4 Seasons Landscaping LLC
Doug Green
01-12-2016 12:56 PM
01-12-2016 12:59 PM
by Doug Green
1 276
2016 business goals
OxfordOS
01-09-2016 04:19 PM
01-12-2016 08:36 AM
by mowandblow1980
15 584
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:08 AM.


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

All times are GMT -5. The time now is 07:08 AM.

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