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
"Part Timers", "Low...
doug1980
06-10-2009 12:55 PM
Today 09:01 PM
by jrs.landscaping
43 10,193
Lawn care truck
Steve
10-10-2009 03:40 AM
Today 07:35 PM
by avetslawncare
42 15,908
Looking for advice on...
berryjam
01-21-2015 07:37 PM
Today 07:30 PM
by avetslawncare
11 309
Is anyone doing mosquito...
BWild
Today 12:30 PM
Today 07:24 PM
by avetslawncare
4 63
Government contracts
avetslawncare
11-15-2014 08:50 AM
Today 07:06 PM
by avetslawncare
5 719
Bidding to get other work
Rodriguez11
07-21-2011 11:52 PM
Today 05:38 PM
by avetslawncare
28 9,328
What happened to Better...
Steve
01-27-2014 04:07 PM
Today 02:17 PM
by Steve
19 3,060
TaskEasy & Plowz & Mowz...
jrwalker333
01-25-2015 01:02 PM
Today 02:14 PM
by Steve
5 129
New to the forum
LCRobert
Yesterday 10:21 PM
Today 01:31 PM
by Steve
3 59
New to group
ron@alpine
Today 08:45 AM
Today 01:29 PM
by Steve
1 38
please Help with none...
Lawnboyman1170
01-09-2015 09:46 AM
Today 01:27 PM
by Steve
13 547
How many contracts...
5StarLawnscaping
01-12-2015 03:51 PM
Today 07:55 AM
by ringahding1
9 484
does this sound good or...
Bradcook21
01-22-2015 09:24 AM
Today 07:42 AM
by ringahding1
9 275
second year advise
cmdlawncare
01-23-2015 06:22 PM
Today 07:31 AM
by ringahding1
6 214
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
01-25-2015 09:34 AM
by ExtremeLawncareServices
9 512
need advise
rawssrob
02-23-2010 02:45 PM
01-23-2015 06:40 PM
by cmdlawncare
7 2,545
New to forum
ROB N
01-23-2015 08:35 AM
01-23-2015 01:53 PM
by Steve
1 114
Extending the life of...
rmccutchan
01-17-2015 12:37 AM
01-23-2015 01:43 PM
by Steve
8 338
osceola lawn service
jasa@wildblue.net
01-22-2015 03:23 PM
01-23-2015 01:38 PM
by Steve
1 134
Tax Question
Wolf4dk
01-20-2015 01:11 AM
01-22-2015 02:28 PM
by Steve
4 249
Billy Goat Vac
Mr. Mow
01-19-2015 07:42 AM
01-22-2015 02:18 PM
by Steve
6 243
Property Pricing
GVL
01-19-2015 02:46 PM
01-21-2015 02:18 PM
by Steve
5 295
Landscapers Source For...
breadcrumb
01-16-2015 02:44 PM
01-21-2015 05:55 AM
by breadcrumb
14 451
Hoa advice
Bradcook21
01-16-2015 09:36 PM
01-20-2015 04:30 PM
by Steve
4 279
My Invention
biglee
01-11-2015 07:51 PM
01-20-2015 10:16 AM
by biglee
16 629
How to beat the pre pay...
stansg1fresh
01-13-2015 04:33 PM
01-19-2015 03:38 PM
by ringahding1
3 351
Hello from Md
homey
12-17-2014 06:55 PM
01-19-2015 01:37 PM
by Steve
12 1,131
Hi from Illinois
burtle
01-02-2015 09:46 PM
01-19-2015 01:22 PM
by Steve
3 521
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
01-19-2015 01:20 PM
by Steve
14 1,448
Lost my @#$ blower
stevef1201
01-11-2015 08:31 AM
01-17-2015 02:21 PM
by lxarth
2 379
Another Illinoisan.....
barhopper
01-11-2015 05:38 PM
01-16-2015 04:29 PM
by Steve
10 437
marketing with pizza...
apmAkron
01-15-2015 09:57 AM
01-15-2015 06:29 PM
by Steve
4 266
CRM and Quickbooks?
5StarLawnscaping
01-15-2015 08:06 AM
01-15-2015 08:06 AM
by 5StarLawnscaping
0 192
New Member, Indiana Iraq...
Timbo
07-14-2011 09:44 AM
01-14-2015 06:14 PM
by Steve
10 3,798
check this box truck out!
BLAZIER-1991
01-07-2015 07:40 PM
01-13-2015 03:06 PM
by biglee
8 638
My community only ad...
googus
01-12-2015 09:55 AM
01-13-2015 02:44 PM
by Steve
5 327
12 Years in Business!
Chilehead
10-23-2014 09:07 AM
01-13-2015 09:37 AM
by Chilehead
18 1,806
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
01-12-2015 06:32 PM
by BLAZIER-1991
30 1,570
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
01-12-2015 06:19 PM
by BLAZIER-1991
4 467
During Your Down Time
achri12
12-24-2014 03:03 PM
01-12-2015 03:54 PM
by Steve
10 1,098
Leaf cleanup
Bradcook21
01-09-2015 02:21 PM
01-12-2015 12:22 PM
by Jamesw86
4 439
Has Anyone Used Plowz ?
dpld
01-08-2014 12:14 PM
01-11-2015 02:17 PM
by burtle
20 3,390
What to pay help
Bradcook21
01-07-2015 01:32 PM
01-08-2015 07:01 PM
by Steve
1 472
Need a trailer
googus
01-07-2015 09:40 AM
01-08-2015 10:24 AM
by Upscale2
7 587
Do you guys charge buy...
burtle
01-02-2015 09:58 PM
01-07-2015 08:37 PM
by Shark1611
14 943
Organic Lawn Care...
NHray
10-17-2014 07:05 PM
01-07-2015 07:05 PM
by greyhound
18 2,177
Need advice please
CHenricks
01-06-2015 01:17 AM
01-07-2015 03:34 PM
by Steve
4 549
Mowing 2 acres
Bradcook21
01-05-2015 03:13 PM
01-07-2015 03:32 PM
by Steve
9 692
Ideas on a large bid
Knaubone
12-21-2014 11:57 AM
01-06-2015 03:55 PM
by Steve
5 999
Trailer with 4ft sides...
mayala030292
01-02-2015 09:01 PM
01-06-2015 03:33 PM
by Steve
5 639
» Popular Tags
2wd 4x4 apartment complex auger bark billy goat brushcutter blades bob villa care collections commercial edging employee problems equipment rental estimate flyers foreman four wheel drive gopherhaul gravely growing a lawn care business hardscapes hills hiring husqvarna hydraulic john deere quik trac landscape services lawn lawn aeration lawn care lawn care business lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn care website seo lighting brass outdoor lights marketing mr dave new mower ordinance past due patio install per hour charge podcast pricing profit on employee pto push versus ride running a business savannah scag v-ride scripts search engine optimization seo shell small engine repair square foot steve toro grand stand trailer tree trimmer rack truck new used landscape up sell employee web design won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:55 PM.


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

All times are GMT -5. The time now is 10:55 PM.

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