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: 4
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: 4
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: 4
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: 4
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
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
Today 11:05 PM
by CaliforniaFriendly
3 184
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
Today 05:12 PM
by jymie
6 293
Brake job!
kslawn
08-30-2014 07:49 AM
Today 03:37 PM
by Steve
8 232
Trailer tires
J.A.S.LawnService
Yesterday 10:17 AM
Today 03:27 PM
by Steve
3 135
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
Today 03:11 PM
by Steve
5 184
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
Today 03:04 PM
by Steve
7 280
New to the industry-...
Lsmain
08-31-2014 10:53 AM
Today 02:58 PM
by Steve
1 136
Sod
RosalesLawnCare
08-27-2014 03:47 PM
Today 02:48 PM
by Steve
3 221
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
Today 02:44 PM
by Steve
2 165
Hello
jawnebgoode
08-28-2014 08:37 PM
Today 02:30 PM
by Steve
1 116
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
Today 02:28 PM
by Steve
1 141
snowplowing
jshak40
Yesterday 07:20 AM
Today 08:15 AM
by kslawn
6 181
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
Yesterday 11:36 PM
by SGL1
7 294
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
08-30-2014 09:49 AM
by BLC7
10 464
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 600
Softball field
kslawn
08-15-2014 09:28 AM
08-28-2014 12:01 PM
by Steve
16 679
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-27-2014 08:33 PM
by kurtwin
1,187 331,354
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
08-26-2014 04:21 PM
by ExtremeLawncareServices
110 6,757
How do I approach...
Bradcook21
08-21-2014 01:48 AM
08-26-2014 05:08 AM
by Billy Goat
12 581
Tender Process
M2Dave
08-24-2014 12:31 PM
08-25-2014 04:14 PM
by Steve
2 254
Grass hopper mower
ExtremeLawncareServices
12-05-2013 08:51 AM
08-25-2014 04:02 PM
by Steve
26 3,913
Need help pricing basic...
Bradcook21
08-22-2014 01:21 AM
08-22-2014 01:05 PM
by Steve
2 347
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
08-22-2014 01:01 PM
by Steve
6 420
yearly contract help...
jrob0691
08-21-2014 04:09 PM
08-22-2014 12:48 PM
by Steve
1 295
Pampas bushes
Bradcook21
08-22-2014 01:30 AM
08-22-2014 07:17 AM
by grassdoctore
1 262
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
08-21-2014 08:50 PM
by phlawncare
2 309
Fuel Can Spouts
Shark1611
08-16-2014 09:09 AM
08-21-2014 08:23 PM
by SGL1
11 550
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
08-21-2014 05:03 PM
by stevef1201
6 807
Hello
M2Dave
08-21-2014 12:32 AM
08-21-2014 01:38 PM
by Steve
1 270
New Landscaping Business
rekon32
08-16-2014 02:26 PM
08-21-2014 12:33 PM
by SouthallMowing
8 607
Downed Tree Chop Bid
WesleySnips
08-16-2014 03:47 PM
08-20-2014 01:44 PM
by SGL1
10 575
60 inch honda/bunton...
pblawncare
08-17-2014 11:30 AM
08-18-2014 03:19 PM
by Steve
2 320
Replacement Parts -...
nicholas-KC
08-16-2014 08:40 AM
08-18-2014 03:16 PM
by Steve
4 430
Preparing the soil
Billy Goat
08-16-2014 06:18 PM
08-18-2014 03:01 PM
by Steve
1 339
What to pay help
phlawncare
08-04-2014 08:33 PM
08-18-2014 10:33 AM
by jrs.landscaping
29 1,175
Hello
Jeff1
08-07-2014 11:18 PM
08-15-2014 11:53 PM
by Jeff1
11 637
Lie #2 RESIDENTIAL...
ExtremeLawncareServices
01-06-2014 05:02 AM
08-15-2014 01:46 PM
by mattthelawnguy
54 6,753
Need help 30 HP koler...
Shady Grady
08-01-2014 03:31 PM
08-15-2014 08:46 AM
by kslawn
18 809
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
08-14-2014 02:37 AM
by BlackRain75
12 2,008
first year update
cmdlawncare
08-12-2014 05:41 PM
08-13-2014 03:29 PM
by Steve
1 435
Hello from Jacksonville,...
JM Lawn Care
08-10-2014 07:15 AM
08-13-2014 07:04 AM
by Sprinkler Buddy
9 562
Hello everyone new to...
maddyandrays
08-11-2014 04:51 PM
08-12-2014 08:58 PM
by Shark1611
2 392
Walk behinds
hpruitcei
08-07-2014 06:28 PM
08-12-2014 02:35 PM
by mattthelawnguy
7 663
New name help
stevef1201
08-10-2014 04:27 PM
08-12-2014 12:03 PM
by Steve
6 539
my little green dilemmas
Lawn Techie
08-03-2014 11:47 AM
08-11-2014 01:20 PM
by Steve
7 638
what the best...
CleanCutsLLC
08-02-2014 01:02 AM
08-11-2014 01:16 PM
by Steve
6 688
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
08-11-2014 01:19 AM
by ExtremeLawncareServices
13 947
Covering all the bases
janslawncare
08-08-2014 10:11 AM
08-08-2014 01:41 PM
by Steve
1 477
New from Florida
ADE
08-06-2014 08:40 PM
08-08-2014 01:32 PM
by Steve
4 544
JOB - Landscape Install...
janslawncare
08-08-2014 10:06 AM
08-08-2014 10:06 AM
by janslawncare
0 437
» Popular Tags
4x4 34'' ads apartment bid apartment lawn care estimate butterfly gardens care charge christmas credit card customers exmark fall ferris financing four wheel drive franchise gopherhaul grass gravely hardscapes health hills holiday how much to charge husqvarna hydraulic invoice kansas city landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website managing a lawn care business marketing mechanic monthly mow mowing mulch price new and restored landscapes new buisness new business new mower podcast promotion push versus ride riding mower scag scag v-ride schedule search engine optimization seo small engine repair starting a business starting a lawn care business steve stihl top dresser toro tractor auger trailer mate pro tree care walker wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 11:33 PM.


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

All times are GMT -5. The time now is 11:33 PM.

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