Originally Posted by Steve
First off, what do you feel went wrong this year that you are going to try and fix next year?
Where is your profit? What do you need to profit in order that you can build up enough cash to go full time with your lawn care business and then hopefully be able to drop your hourly operating costs.
Im probably over thinking this if I am let me know. Hell for all I know im Under thinking this...lol
First...I started late (May). Most good residential lawn jobs are dependent on the summer residents. Which means I need to get out to them this time of the year for next year. Doing that now with buisness cards, flyers, pull offs, Signs on my trailer and doors of my vehicle, word of mouth hopefully from the couple summer res jobs im doing now.
Insurance: If I increase my coverage I can compete for some of the smaller comercial jobs with with equipment I have now.
Increased Knowledge: I am still planning on taking the gardner course put on through the state coop ext. As long as no more financial mishaps occure before then. lol. I am limited to what I have learned here and other places on the net. Right now I can mow. I could aerate if needed and can tell I think if its needed using a screw driver. I can over seed, remove leaves or mulch them back into the lawn, I know why these things are good (basically) but need to know much more!
Steve your second question:
I relooked at my numbers and If I understand your question right what I need to charge per hour to be able to go full time is what your aqsking? Im no accountant and this is my first buisness so please bare with me. And thanks for the help by the way.
To replace my TOTAL current income, cost of my "WANT" list above, I added a Misc expense and a profit of about $10400/yr my TOTAL NEED would be $107,393 / 2080hrs pr year = +- $52 pre hr.
Now I had to add plowing to cover jan/feb/mar. Plowing around here for residental would be about $125/hr ($25-$40/intown drive) and this is how things broke down.
jan...Plowing 160hrs @$125/hr=$20,000
feb...Plowing 160hrs @$125/hr=$20,000
mar..Plowing 200hrs @$125/hr=$25,000
apr...Mow/spring cleanup 160hrs @$50/hr=$8000
may..mow 200hrs @$50=$10,000
jun...mow 160hrs @$50=$8,000
jul....mow 160hrs @$50=$8,000
aug..mow 200hrs @$50=$10,000
sep..mow 160hrs @$50=$8,000
oct...mow/fall cleanup 160hrs @$50=$8,000
TOTAL INCOME: $125,000
These are obviously Ideal goals but im trying to understand how this works. This is my understanding of what I need to be looking at. Am I correct????
Once this initial investment is made as far as equipment ($18,000) I would need to figure on replacing it say every 3 years and being able to lower my cost/hr or adding to it and growing and keeping my cost/hr the same. Is my thinking correct on this also????
Thanks again for any help guys!!!