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, 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
  #5  
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
  #6  
Old 07-21-2012, 07:50 PM
PVMS PVMS is offline
Member
 
Join Date: Jul 2012
Location: Melbourne, Australia.
Posts: 36
Rep Power: 2
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
  #7  
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
  #8  
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
  #9  
Old 07-21-2012, 07:58 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

Well I don't know that he would sell me the equipment and give me the list of his clients. That's why he wanted me to sign a confidentiality clause so that I cant just solicit all his customers.
__________________
2008 F-350, 2006 rzt50 23kH, 2010 tank m48 with 25kH, 16x8 vnose car hauler, echo edgers and weedeaters.
Reply With Quote
  #10  
Old 07-21-2012, 08:12 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

Well my thoughts in that was I was going to figure in that some will just not be happy with the works so I figured 5-6 of the customers leaving. That is a big worry that maybe they don't want my service but I would not pay the $35k and that's why I liked the fact that he was okay with monthly payments. And if he got a list to me of the customers we could let them know what's going on and see if they plan to stick around for another season. If not maybe I can negotiate into the final price some kind of deduction for each customer that is not a return for next season. I think there is great opportunity in this since he has established routes and been cutting majority of the yards for 5 years now. But it is a big risk to take at the same time. If he grosses what he is saying the work can easily pay the investment back quickly
__________________
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
In a bit situation need...
googus
04-22-2014 08:01 AM
Yesterday 10:03 PM
by googus
9 168
Mangwi Landscaping
bondservojc13
Yesterday 09:56 PM
Yesterday 09:56 PM
by bondservojc13
0 28
Pushy customers
christopherhicks82
04-22-2014 08:22 PM
Yesterday 09:07 PM
by christopherhicks82
5 142
Acerage Rake
acrajchel
Yesterday 07:23 PM
Yesterday 07:23 PM
by acrajchel
0 29
2.5 acre mowing
xandrew245x
04-18-2014 06:55 AM
Yesterday 07:11 PM
by acrajchel
15 341
New Trailer
bobwill2009
Yesterday 12:46 PM
Yesterday 06:46 PM
by BelleCityLawn1
2 68
Advertising On...
JacobsLawnMowing
03-17-2014 03:21 PM
Yesterday 06:02 PM
by bobwill2009
13 864
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
Yesterday 12:37 PM
by Steve
7 219
Pond...
xandrew245x
04-22-2014 03:29 PM
Yesterday 12:30 PM
by Steve
3 86
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
Yesterday 12:17 PM
by bobwill2009
79 25,320
The $20 Mow Job
Dan Tanner
04-21-2014 07:24 PM
Yesterday 12:06 PM
by Steve
5 195
quickbooks users
CDLAWNCARE
04-20-2014 09:03 AM
Yesterday 06:48 AM
by CDLAWNCARE
4 175
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
04-22-2014 07:55 PM
by Just for Cuts
23 581
About D@## Time!
TamMik
04-02-2014 08:10 AM
04-22-2014 05:14 PM
by BelleCityLawn1
19 870
Back for this year
xandrew245x
02-21-2014 04:30 PM
04-22-2014 03:36 PM
by xandrew245x
19 1,010
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-22-2014 12:29 AM
by Tony317
22 1,715
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-22-2014 12:07 AM
by Tony317
9 446
danny 2
danny2
04-19-2014 10:19 PM
04-21-2014 12:25 PM
by Steve
3 138
this mower is driving me...
boog
04-17-2014 12:07 PM
04-21-2014 12:10 PM
by kslawn
13 355
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
04-21-2014 12:02 PM
by kslawn
20 597
I Got Taken...,
Dan Tanner
04-19-2014 06:26 AM
04-21-2014 11:49 AM
by Steve
4 230
new to this forum!
mower13126
04-18-2014 07:37 PM
04-21-2014 11:39 AM
by Steve
4 149
REO calling
Dan Tanner
04-16-2014 05:03 PM
04-21-2014 11:33 AM
by Steve
12 349
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
04-20-2014 04:40 PM
by Dan Tanner
20 6,885
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
04-20-2014 11:13 AM
by ExtremeLawncareServices
32 1,216
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-20-2014 11:11 AM
by kslawn
10 368
Customers droping like...
goodtimez
04-18-2014 09:53 AM
04-19-2014 08:09 AM
by CDLAWNCARE
7 230
Best Bulk Mulch delivery...
Steven Virgadamo
04-18-2014 09:52 AM
04-18-2014 05:34 PM
by Steve
2 103
Steve Virgadamo,...
Steven Virgadamo
04-18-2014 09:49 AM
04-18-2014 05:08 PM
by Steve
2 85
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
04-18-2014 04:51 PM
by Steve
3 180
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
04-18-2014 04:47 PM
by Steve
5 244
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
04-18-2014 04:39 PM
by Steve
9 263
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
04-18-2014 04:04 PM
by stevef1201
10 284
leaf removal
tlf59263
04-15-2014 10:00 PM
04-18-2014 03:59 PM
by stevef1201
6 238
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 637
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 806
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 149
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 348
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 131
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 787
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 294
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 234
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 371
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 275
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 156
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 286,817
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 530
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 537
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 240
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 501
» Popular Tags
2wd 34'' advertisement birdscaping buy charge christmas christmas lighting client collections subcontractor color jet credit card processing customers ecosymbiosis escrow exmark ferris flower bed for sale fundraiser georgia gopherhaul gravely holiday holiday decorating honda how much to charge how to bid installation kawasaki lawn care lawn care business podcast lawn care business show lawn service lawn service clarksville tn leaf cleanup leaf removal lighting brass outdoor lights marketing mowing mulch mulch estimate native plants new buisness new business oil online classifieds organize outdoor environments payday podcast redmax rotating savannah scag season seo social media sprayer starting a business stihl taxes theft of services tips truck unreasonable walk behind walker winter winter services
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:49 AM.


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

All times are GMT -5. The time now is 02:49 AM.

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