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 > Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions

Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions Are you interested in starting your own lawn care franchise or are you interested in buying into one? Let's talk about different franchise opportunities and how to build your own franchise. Also we discuss different entrepreneurs who inspire us!

Potential to buy accounts and equipment


Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions

Are you interested in starting your own lawn care franchise or are you interested in buying into one? Let's talk about different franchise opportunities and how to build your own franchise. Also we discuss different entrepreneurs who inspire us!
Reply
 
Thread Tools Search this Thread
  #1  
Old 07-21-2012, 04:55 PM
Rodriguez11 Rodriguez11 is offline
Senior Member
 
Join Date: Oct 2010
Location: Alabama
Posts: 102
Rep Power: 5
Rodriguez11 is on a distinguished road
Default Potential to buy accounts and equipment

Hey guys I have an opportunity to purchase a company from a guy that is moving away. I believe he has been in business for around 10 years. I will be getting a lot more details on the company and all the accounts once i meet with him. But before I do meet with him I want to get a little inside into what I may be getting into. As far as I know right now, he claims to bring in $85,000 a year doing the work with him and his partner in the company. He is selling the company for $35,000 and it comes with 14' enclosed trailer, weedeaters, edgers, zero turn, walk behinds and push mowers. I have equipment of my own but more equipment is always a plus. Not sure about equipment brand and all that good info we all want. My main wonder is where does he get the value of $35,000? Maybe that's what he wants but how should I try to calculate a fair price for the accounts which he says is 90% residential. I have read somewhere that people in similar purchasing opportunities will ride with the company for a couple weeks to see the routes meet the accounts and such. As of right now my accounts keep me busy 60 hours a week so that's not an option. Just wondering any good ideas on questions and concerns to ask when I meet him. Thanks in advance
Meeting him within the next few days
__________________
2008 F-350, 2006 rzt50 23kH, 2010 tank m48 with 25kH, 16x8 vnose car hauler, echo edgers and weedeaters.
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 07-21-2012, 05:44 PM
willshome willshome is offline
new member
 
Join Date: Jan 2012
Location: Mass
Posts: 865
Rep Power: 0
willshome is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
If your working 60 hours a week now why do you need more? ask for tax records to see what he is making
Reply With Quote
  #3  
Old 07-21-2012, 06:33 PM
LawnBoy0311 LawnBoy0311 is offline
new member
 
Join Date: Jun 2012
Location: East Coast
Posts: 1,169
Rep Power: 0
LawnBoy0311 is on a distinguished road
Default

If he's pulling 85K and selling for 35K something doesnt add up. BUT- ask him for a P&L statement or proof of his numbers. Also, what about contracts with his clients? Are you planning on adding another crew? Sounds like your maxed out as it is, but your going to be adding quite a few more after the sale. IMO its not worth buying an existing business in this field.
Reply With Quote
  #4  
Old 07-21-2012, 06:37 PM
WorkForMySelf WorkForMySelf is offline
new member
 
Join Date: Jan 2012
Posts: 210
Rep Power: 0
WorkForMySelf is on a distinguished road
Default

Selling lawn contracts seems to be a pretty popular scam


I recommend alot.. alot of research and verifying
Reply With Quote
  #5  
Old 07-21-2012, 07:38 PM
Rodriguez11 Rodriguez11 is offline
Senior Member
 
Join Date: Oct 2010
Location: Alabama
Posts: 102
Rep Power: 5
Rodriguez11 is on a distinguished road
Default

In regards to why do I need more? I think anyone that is in business should always be looking for opportunity to grow. I can expand with an entire crew for my commercial side and one for the residentials. I talk to him today and he has 58 accounts, 12 are small commercial accounts. He has tax records from up to 5 years ago. Without asking he told me he has a list of all equipment with serial numbers and all customers last names and zip codes they are in. If i sign a confidentiality sheet he will give me the list of full names and contact information for each customer. He said it takes 2 guys 4 days to complete all the properties. His partner in the company is retiring and the guy I talked to is planning to move to Colorado and willing to do monthly payments to ensure the client base is sticking around.
__________________
2008 F-350, 2006 rzt50 23kH, 2010 tank m48 with 25kH, 16x8 vnose car hauler, echo edgers and weedeaters.
Reply With Quote
  #6  
Old 07-21-2012, 07:44 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Monthly payments isnt a bad idea.

From what I seen with buying accounts, you pay for 1 month of service. So if the total properties equal $7000 a month, thats the price.

As far as him making $85k, thats gross.

He seems to be willing to give you a lot of information. He might not be a bad guy to deal with if you can figure out a price that works for both of you.

Good luck.
Reply With Quote
  #7  
Old 07-21-2012, 07:50 PM
PVMS PVMS is offline
Member
 
Join Date: Jul 2012
Location: Melbourne, Australia.
Posts: 36
Rep Power: 3
PVMS is on a distinguished road
Default

I have purchased some accounts in the past, but I will not pay more than 3 times cut value for each, and the jobs have to be priced at least at 1 dollar a minute, and in my service area. I will not pay more than a third of new equipment price for second hand stuff. Too many unknowns.
Just remember, the purchaser holds all of the aces when negotiating. Not everyone has that kind of money to go off shopping for a business every day of the week.
I would be wary of 10year + old business as far as pricing jobs goes. Many business do not increase price inline with inflation.
Reply With Quote
  #8  
Old 07-21-2012, 07:51 PM
Rodriguez11 Rodriguez11 is offline
Senior Member
 
Join Date: Oct 2010
Location: Alabama
Posts: 102
Rep Power: 5
Rodriguez11 is on a distinguished road
Default

Monthly is definitely a plus since I can make the payments instead of having that much cash up front and it would put me at ease knowing I am not getting screwed because I am doing the work and making the money. And absolutely that's gross, taking out expenses and everything else I still think it would be worth having a crew take care of it.. The pricing is where I was stumped to how he got $35000, I was figuring something like the $7-8000 range plus fair market value for the equipment if I even need it. I don't think he is a bad guy he is a friend of one of my parent's workers, he has known the guy a good 10 years too. He told me if I am actually serious he will give me everything he has to show whatever I need to know.
__________________
2008 F-350, 2006 rzt50 23kH, 2010 tank m48 with 25kH, 16x8 vnose car hauler, echo edgers and weedeaters.
Reply With Quote
  #9  
Old 07-21-2012, 07:55 PM
wat5150 wat5150 is offline
new member
 
Join Date: May 2012
Posts: 604
Rep Power: 0
wat5150 is on a distinguished road
Default

I wouldnt purchase his accounts. Buy his equipment then solicit his old accounts. I dont like the whole buying accounts thing. I would talk to the accounts first and explain he is selling and your buying his equipment and would they like to stay on as a client of yours. Dont pay for an account.
Reply With Quote
  #10  
Old 07-21-2012, 07:55 PM
Rodriguez11 Rodriguez11 is offline
Senior Member
 
Join Date: Oct 2010
Location: Alabama
Posts: 102
Rep Power: 5
Rodriguez11 is on a distinguished road
Default

PVMS that's a good point about how they actually priced everything. After signing a confidentiality sheet I was for sure going to check out all the properties to make sure they are priced appropriately.
__________________
2008 F-350, 2006 rzt50 23kH, 2010 tank m48 with 25kH, 16x8 vnose car hauler, echo edgers and weedeaters.
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
how to respond to potential clients mramsa82 Starting a lawn care business. 3 04-19-2012 08:20 PM
Are you using Facebook to it's full potential? The Cleaning Doctor Lawn Care Marketing & Post your marketing material for review! 5 06-30-2011 11:51 AM
Potential new customers that are cheapos jymie Starting a lawn care business. 23 06-27-2011 10:16 PM
Should I send this to potential customers? CHEESE2009 Community Assistance 9 02-02-2010 10:37 AM
Income potential jasonw Starting a lawn care business. 13 06-11-2009 02:33 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Share your stolen...
SGL1
05-27-2015 09:05 PM
Today 12:35 AM
by Steve
13 183
Hello
designr69
Yesterday 02:47 PM
Today 12:29 AM
by Steve
1 34
Hello All
HappyGrass
05-27-2015 10:10 PM
Today 12:27 AM
by Steve
4 94
big job for me....need...
holymoly
05-28-2015 06:15 AM
Today 12:26 AM
by Steve
5 117
What a JERK!
Chilehead
05-06-2015 08:13 AM
05-28-2015 03:13 PM
by HappyGrass
16 833
5 things you would...
Steve
09-11-2008 08:53 AM
05-28-2015 03:02 PM
by HappyGrass
5 2,163
how to make customers...
Bradcook21
05-27-2015 05:04 PM
05-28-2015 12:31 PM
by Steve
5 130
Equipment dealers
mattthelawnguy
05-21-2015 04:33 PM
05-28-2015 12:20 PM
by Steve
6 223
Things your lawn care...
Steve
05-27-2015 11:48 AM
05-27-2015 11:48 AM
by Steve
0 68
I can't believe people...
ExtremeLawncareServices
05-25-2015 10:29 AM
05-27-2015 11:45 AM
by jrs.landscaping
9 273
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
05-27-2015 11:35 AM
by Steve
5 198
Pissed off customers
stonegatedesigns
05-26-2015 05:29 PM
05-27-2015 11:26 AM
by Steve
3 141
Great start to the season
jcurr33
05-25-2015 08:49 PM
05-26-2015 01:50 PM
by Steve
2 103
uploading video on here?
holymoly
05-24-2015 08:13 AM
05-26-2015 01:37 PM
by Steve
2 102
new here ! need help
pgrace
05-23-2015 11:29 PM
05-26-2015 01:35 PM
by Steve
1 121
What's your next...
Steve
05-15-2015 11:54 AM
05-26-2015 01:25 PM
by Steve
14 413
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
05-26-2015 01:22 PM
by Steve
5 238
More Rain or Less?
Steve
05-20-2015 12:06 PM
05-24-2015 04:37 PM
by SGL1
12 305
Irrigation
pboy8634
02-21-2010 12:46 PM
05-22-2015 10:05 PM
by biglee
25 8,487
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
05-22-2015 09:58 PM
by biglee
37 9,243
Peace garden ideas
SGL1
05-13-2015 03:15 PM
05-21-2015 07:51 PM
by avetslawncare
16 552
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
05-20-2015 09:18 PM
by ExtremeLawncareServices
84 6,910
Total yard rehab
SGL1
04-23-2015 03:59 PM
05-19-2015 08:22 PM
by SGL1
15 849
Say Hello !!!
Steve
03-19-2007 11:18 AM
05-19-2015 04:12 PM
by NinaMarie86
1,223 390,500
New Lawn Service
carmelitaslawnservice
05-19-2015 10:02 AM
05-19-2015 02:51 PM
by Steve
1 148
Landscaper Jailed After...
SGL1
05-18-2015 08:15 AM
05-19-2015 02:37 PM
by Steve
5 251
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
05-19-2015 02:29 PM
by Steve
38 2,061
feeling like im being...
Bradcook21
05-17-2015 07:33 AM
05-19-2015 02:11 PM
by Steve
6 258
good news yesterday
Bradcook21
05-17-2015 07:08 AM
05-19-2015 06:16 AM
by Bradcook21
3 186
ignition coil
jasonw
05-12-2015 05:31 PM
05-18-2015 12:07 PM
by Steve
3 300
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
05-18-2015 12:06 PM
by Steve
13 741
Big (to me) mulch job
tl757
04-23-2015 05:32 PM
05-15-2015 08:46 PM
by biglee
22 1,552
big dog mowers?
Bradcook21
05-13-2015 04:03 PM
05-14-2015 10:55 AM
by Steve
4 329
Small HOA Bid
lxarth
05-06-2015 10:37 PM
05-13-2015 11:55 AM
by Steve
9 560
New company in Michigan
SEM
04-24-2015 09:27 PM
05-13-2015 11:51 AM
by Steve
11 681
Fired for refusing to...
Mr. Mow
05-09-2015 06:15 AM
05-12-2015 01:36 PM
by Steve
6 550
I have ZERO confidence...
Just for Cuts
05-01-2015 04:24 PM
05-12-2015 03:53 AM
by jrs.landscaping
31 1,155
landscape insurance
clarkslawn
03-30-2015 10:14 PM
05-11-2015 01:15 PM
by Steve
6 1,073
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
05-10-2015 07:50 PM
by ExtremeLawncareServices
9 1,101
Bought my first STIHL...
Mr. Mow
05-09-2015 06:29 AM
05-10-2015 08:36 AM
by Mr. Mow
9 457
advice wanted please and...
CHenricks
05-07-2015 08:40 PM
05-08-2015 04:20 PM
by CHenricks
7 475
Hello
SallyBorowicz
05-06-2015 11:14 AM
05-08-2015 02:21 PM
by Steve
3 379
Mower Advice
tl757
05-06-2015 02:31 PM
05-08-2015 01:45 PM
by Steve
6 511
Home today...Still...
biglee
05-06-2015 11:59 AM
05-07-2015 12:06 PM
by biglee
2 380
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
05-07-2015 11:17 AM
by Steve
79 4,076
color fliers?
holymoly
04-18-2015 02:32 PM
05-07-2015 10:57 AM
by Steve
16 1,081
Looking good
mrsmichigan
05-06-2015 09:47 AM
05-07-2015 10:53 AM
by Steve
1 318
What are your biggest...
Steve
05-05-2015 01:24 PM
05-07-2015 10:52 AM
by Steve
2 374
is craiglist good to...
JBENI
04-16-2015 11:11 AM
05-06-2015 07:15 PM
by TheYardGuy
12 1,164
Go daddy web site and...
jcurr33
05-04-2015 06:00 PM
05-05-2015 11:57 AM
by Steve
2 403
» Popular Tags
aerocore apartment bid apartment lawn care estimate applying auger billy goat brushcutter blades blowout bush commercial curb appeal services deliquentaccounts demonstration ditches door hangers employee problems equipment rental estimate facebook foreman free advertising google growing a lawn care business how to husqvarna jobs john deere quik trac landscape landscape services landscaping training lawn lawn care lawn care busines plan managing a lawn care business marketing more customers business mr dave mulch new business patio install per hour service pricing pto scag secrets to landscaping sell the vision shell shreaded small engine repair snow plowing sq ft square foot starting a lawn care business steep lawns swzt theft toro toro grand stand tractor auger trailer trailer mate pro tree trimmer rack up sell employee web design website website design winterization wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:06 AM.


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

All times are GMT -5. The time now is 01:06 AM.

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