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, 05:55 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, 06:44 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, 07:33 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, 07:37 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, 08:38 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, 08:44 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, 08:50 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, 08:51 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, 08:55 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, 08:55 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 09:20 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 12:51 PM
Potential new customers that are cheapos jymie Starting a lawn care business. 23 06-27-2011 11:16 PM
Should I send this to potential customers? CHEESE2009 Community Assistance 9 02-02-2010 11:37 AM
Income potential jasonw Starting a lawn care business. 13 06-11-2009 03:33 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Hello from Kentucky
TRV
09-30-2014 06:42 PM
Today 12:22 PM
by Steve
9 1,364
Pics for website
tbtigers03
11-21-2014 05:40 PM
Today 12:12 PM
by Just for Cuts
5 213
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Today 11:34 AM
by Steve
177 14,203
Hi from IL
steveinil
Yesterday 02:07 PM
Today 11:21 AM
by Steve
1 52
WNY saying Hi.
Sargewesser
Yesterday 07:27 AM
Today 11:20 AM
by Steve
1 56
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
Today 11:19 AM
by Steve
18 627
Peco Bagger
AGPS
11-18-2014 02:20 PM
Today 10:58 AM
by Steve
10 380
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
Today 10:57 AM
by Steve
22 6,255
Contract or no contract?
TRV
11-20-2014 09:18 PM
Today 10:43 AM
by Steve
4 236
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
Today 10:42 AM
by Steve
5 382
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
Today 10:40 AM
by Steve
14 448
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
Today 09:28 AM
by Hanks Lawn Care Services
8 299
leaf removal
Double J LLC
10-03-2014 05:24 PM
Today 01:08 AM
by ExtremeLawncareServices
25 2,561
How much do you up sell...
Essex Groundskeeping
11-23-2014 07:13 PM
11-24-2014 06:29 PM
by stevef1201
8 208
This sucks...
Matther777
09-18-2014 05:56 PM
11-24-2014 05:49 PM
by biglee
16 3,239
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
11-24-2014 04:32 PM
by acrajchel
4 689
New website
Chilehead
11-20-2014 04:39 PM
11-23-2014 07:40 PM
by Just for Cuts
12 338
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
11-22-2014 10:49 PM
by Just for Cuts
16 563
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 175
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 1,020
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 572
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,937
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,516
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,248
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 834
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 615
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 538
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 381
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,451
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 312
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 580
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,664
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,780
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,941
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,757
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 497
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 699
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 384
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 444
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,397
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 664
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 566
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
11-10-2014 01:25 PM
by Steve
2 407
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 365
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 386
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 641
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 425
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 477
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 519
hello, new to this site
tonyorwig
10-31-2014 10:49 PM
11-04-2014 02:24 PM
by tonyorwig
3 692
» Popular Tags
2wd 4wd aerocore apartment complex bark billy goat brushcutter bush charge christmas collections employee problems equipment rental estimate exmark ferris first truck foreman georgia gopherhaul gravely holiday how much to charge how to bid husqvarna hydraulic jobs labor cost landscape services lawn lawn care lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lighting lighting brass outdoor lights managing a lawn care business marketing mechanic mowing mr dave mulch mulch price new business ordinance podcast profit on employee push versus ride savannah scag v-ride search engine optimization seo shreaded small engine repair starting a business start up lawn care business steep lawns stihl toro tractor auger trailer trimmer rack truck new used landscape walk behind walker won't return wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:42 PM.


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

All times are GMT -5. The time now is 05:42 PM.

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