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.

Business with a partner


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 05-14-2011, 10:08 AM
Robc Robc is offline
Member
 
Join Date: Apr 2011
Posts: 44
Rep Power: 4
Robc is on a distinguished road
Default Business with a partner

Does anyone run their business with a partner?
I used to run mine by myself and used to do pretty good just didnt have any time to do anything most of the season except business related things.
Me and my friend are now doing it as partners.
Its spilt like this - He does administrative work and I do the field work with the 2 employees or whatever you want to call it because thats what I enjoy doing and he likes doing the other half.
We have 2 guys working for us this year.
We are trying to open up to the landscape construction side as well. Mostly we do all maitnenance now.
My question is if there is someone that has a maintenance business with a partner is it profitable enough for 2 "owners" to be splitting?
It doesnt seem like it to me for all the stress that comes with it.
Constantly when Im mowing or doing jobs Im calculating in my head how much we are making versus how much we are spending. When we put out bids together we usually use $60/hr as a standard for coming up with a total for labor costs. It seems like that would have to go up about 20-30%. The main reason we joined was to expand and free up time for our selves. Im not so sure about it now.
What do you guys think? Any comments on successfully having a biz partner?
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 05-14-2011, 02:26 PM
bruces bruces is offline
new member
 
Join Date: Apr 2010
Posts: 828
Rep Power: 0
bruces is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
partnerships almost always end up with an unfair split in the workload .Is your set-up a 50-50 split ?
Reply With Quote
  #3  
Old 05-15-2011, 01:41 AM
Robc Robc is offline
Member
 
Join Date: Apr 2011
Posts: 44
Rep Power: 4
Robc is on a distinguished road
Default

the split is like this - I do scheduling, the actual work with 2 employees everyday, advertising ( which is not much at all because we are pretty busy ), and maintenance on the equipment . Maybe a few other small things thats the majority tho.
what he does is all paperwork related -billing,bids,customer calling and service, tax and payroll etc. things related to that side of the biz
so i do more of the labor which i enjoy and doesnt bother me and he does more office type work most of the time. He probably works less actual hours than me.

Can you give me a brief example maybe of how a typical split works? and how a split of bascially 5 ways works -the 2 owners, 2 employees, and the business. money needs to go to each area.

Its not really the labor split that im worried about. What im constantly figuring is profits. Because thats why we work. For the profits cuz thats what provides money for the things we want to do. The way i think about is like this if we are figuring bids off of $60 an hour then you have to divide it like this - $20/hr for 2 employees at $10/hr, roughly $10/hr should go to the business and the rest to the 2 owners. $15.hr each? That doesnt make sense tho cuz I could go work for some one else making more than that or the same with a significant amount of stress taken away.
So I might be off of what im thinking here. How do you figure bids or whatever so that what the 2 owners make goes up without over bidding to compensate?
I hope this makes sense. Its really frustrating to me when i used to do it myself and was bringing in good money every month. but im trying to get some time back.
Reply With Quote
  #4  
Old 05-15-2011, 12:32 PM
bruces bruces is offline
new member
 
Join Date: Apr 2010
Posts: 828
Rep Power: 0
bruces is on a distinguished road
Default

your rate should be per man hour .Say your helpers and yourself are going to a large enough property it will take 1 full hour to service ,so as you are doing it now,you would charge $60.00 if I am fully understanding it .Anyways,you actually have 3 hours invested in the property ,an hour by yourself ,and another hour for each of your two helpers .Your charge should be $180.00 for that property .You might have yourself billed out at $60.00 per hour [lets call it a foremans wage] ,and maybe your helpers are not worth as much as you in terms of jobs they can handle unsupervised,speed accuracy etc.,so they might be charged out at only $40.00 per hour each ,which would put your crews charge rate at $140.00 per hour .
A split can be done in many ways ,but typically ,after expenses [employees equipment,rent,taxes,whatever else ] the remaining cash would be split between the two owners and the business however you decide .Depending on what each owner is bringing to the table [skills,money,time,] the % split would need to be worked out ,but from the extremely limited info you have given us it appears to me that your doing the lions share of the work ,so maybe a split of 60% for you, and 40% for him is in order but that has to be worked out between you two .It isnt easy to figure out ,but having reasonable expectations from each party involved will help .Since it appears you already had this business operating before you found a partner ,you have a reasonable expectation of getting some extra bonus because you provided a working business to begin with,presumably with some equipment and contracts along with a good name as well .Everything has value in this situation .
Reply With Quote
  #5  
Old 05-16-2011, 12:16 AM
Robc Robc is offline
Member
 
Join Date: Apr 2011
Posts: 44
Rep Power: 4
Robc is on a distinguished road
Default

you pretty much answered my question all the way around. but it leads me to a couple more.
its kind of a long story how we became partners. I had my own biz going but then I had to leave for a couple years and left it with him, where he kept it going. He got divorced and kind of let everything go except for a couple accounts. Then I came back and now we doing it together.
Anyways I would think there isnt to many places that are going to be paying around 140 for you to be at their property for an hour. Just using that as the same example. We are licensed and insured but After doing mostly residentials for years it just seems way out there. But is that just the standard?
If it costs the same to operate at a homeowners property as it does at a commercial property why is a commercial property cost so much more?
Maybe im missing something here? The couple HOAs we do they told us what the previous guy was doing it for (showed us the old contract) and it was significantly higher than what we charge now. but we didnt low ball it.
Also i told him that the hourly rate that we figure totals for bids off of, should go up from $60/hr since there is 2 employees now. The fast answer to that was with 2 guys working with us now we get that much more work done in every hour we are working. so if it used to take a hour with one person then it only takes 30 min or less with 3 so there is no reason to have a higher hourly figure. I dont think this is right. what do you think?
something needs to change though soon because it doesnt seem like we are making as much as we could or should be.

I guess i kind of went in 2 different directions here.

Last edited by Robc; 05-16-2011 at 12:19 AM.
Reply With Quote
  #6  
Old 05-16-2011, 10:18 AM
bruces bruces is offline
new member
 
Join Date: Apr 2010
Posts: 828
Rep Power: 0
bruces is on a distinguished road
Default

I believe that Steve has posted that the national average rate is $45.00 per hour for lawncare ,if thats not the actual # ,then I bet its pretty close .Are you telling the customer your $60.00 per hour ,or are you just figuring that rate out on your own then giving your customer a final quote ? I dont tell the customer that his lawn is a one hour job ,I just give him a final price .This allows me the freedom to show up with a crew of guys and be done in five minutes without explaining to him that it still took an hour,it was just spread out between 5 guys .
Reply With Quote
  #7  
Old 05-17-2011, 12:09 AM
Robc Robc is offline
Member
 
Join Date: Apr 2011
Posts: 44
Rep Power: 4
Robc is on a distinguished road
Default

Quote:
Originally Posted by bruces View Post
I believe that Steve has posted that the national average rate is $45.00 per hour for lawncare ,if thats not the actual # ,then I bet its pretty close .Are you telling the customer your $60.00 per hour ,or are you just figuring that rate out on your own then giving your customer a final quote ? I dont tell the customer that his lawn is a one hour job ,I just give him a final price .This allows me the freedom to show up with a crew of guys and be done in five minutes without explaining to him that it still took an hour,it was just spread out between 5 guys .
The only time I work by the hour is when im operating the field mower by myself. other than that its always a total figure based off a $60/hr rate.X amount of estimated hours times our $60/hr rate = the final price of the bid.
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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Fire my Partner? jklawncare Community Assistance 31 01-19-2012 09:45 AM
Silent partner in a corporation... Help! Gls Starting a lawn care business. 11 03-23-2011 01:19 PM
Interesting interview with Larry Cheng, a partner at Fidelity Ventures SuperiorPower General Talk 9 12-12-2009 10:23 PM
Requirements of franchise 'business partner' Steve Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions 3 08-01-2007 07:21 AM
Buying my partner out Billz General Business Discussions 4 10-04-2006 12:22 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
Yesterday 10:14 PM
by WesleySnips
5 327
Spreading Weeds?
WesleySnips
Yesterday 09:46 PM
Yesterday 09:54 PM
by Just for Cuts
1 27
Left handed edging with...
SGL1
07-23-2014 08:59 PM
Yesterday 09:29 PM
by Just for Cuts
14 287
Building credit
Matther777
Yesterday 05:20 PM
Yesterday 05:20 PM
by Matther777
0 37
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 01:21 PM
by ExtremeLawncareServices
80 4,602
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
Yesterday 08:16 AM
by Just for Cuts
7 165
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-26-2014 04:39 PM
by BLC7
7 314
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
07-26-2014 04:29 PM
by BLC7
1 73
From Concord NC
SouthernRootsLawnCare
07-26-2014 02:34 PM
07-26-2014 02:34 PM
by SouthernRootsLawnCare
0 34
New from Texas
Livingston Lawn Care
07-25-2014 11:17 AM
07-26-2014 08:10 AM
by Livingston Lawn Care
2 105
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-25-2014 06:31 PM
by mattthelawnguy
13 471
Echo Edger 'Neutral'
WesleySnips
07-25-2014 05:28 PM
07-25-2014 05:58 PM
by Just for Cuts
1 84
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
07-25-2014 05:43 PM
by WesleySnips
13 598
You know it;s gonna be a...
stevef1201
07-25-2014 08:50 AM
07-25-2014 01:34 PM
by Steve
1 92
Customer letters
kslawn
07-23-2014 06:17 AM
07-25-2014 01:20 PM
by Steve
5 198
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
07-24-2014 07:09 PM
by SGL1
29 1,253
Need help determining...
Jbss861
07-20-2014 02:33 PM
07-24-2014 01:11 PM
by Steve
13 375
Should I ?
googus
07-22-2014 04:06 PM
07-24-2014 12:10 PM
by Steve
4 213
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
07-24-2014 06:46 AM
by kslawn
15 911
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
07-24-2014 06:38 AM
by kslawn
3 214
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
07-24-2014 06:28 AM
by kslawn
3 272
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
07-23-2014 05:37 PM
by Just for Cuts
9 300
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
07-23-2014 12:42 PM
by Steve
3 208
new to me box truck
jrayb39667
03-06-2014 10:20 PM
07-23-2014 12:40 PM
by Steve
15 1,399
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
07-23-2014 11:48 AM
by Steve
4 246
Overspray?
stevef1201
07-21-2014 04:20 PM
07-23-2014 11:39 AM
by Steve
3 152
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 288
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 669
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 509
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 297
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 606
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 191
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 186
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 741
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 1,060
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 787
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 711
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 320,483
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,730
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 462
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 379
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 836
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 574
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 584
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,905
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 572
Questions for a patchy...
jumcgee
07-09-2014 08:42 AM
07-11-2014 12:34 PM
by Steve
1 232
toro proline blades wont...
boog
06-25-2014 06:26 PM
07-11-2014 05:28 AM
by kslawn
18 673
Contents of Marketing to...
prmenter@gmail.com
07-09-2014 05:25 PM
07-10-2014 03:23 PM
by Steve
3 327
Shindaiwa
CLB454
05-13-2014 09:04 PM
07-10-2014 03:04 PM
by Steve
14 810
» Popular Tags
4wd advertisement article marketing auger bid butterfly gardens charge christmas lighting christmas light service courtesy call customers decorating estimate exmark ferris first truck fundraiser gopherhaul grass gravely hills holiday holiday decorating holiday lighting how much to charge introduction john deere quik trac lawn lawn care lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf lighting marketing monthly mow mulch mulch price new buisness new mower organize outdoor environments payment podcast property management company pto reo scag schedule scripts seo snow starting a business starting a lawn care business start up lawn care business steve stihl theft toro toro grand stand trailer trimmer rack walker winter winter services zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:04 AM.


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

All times are GMT -5. The time now is 05:04 AM.

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