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 > Just starting your lawn care or landscaping business? > Starting a lawn care business.

Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

Buying Existing Accounts


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 06-07-2010, 01:14 PM
mxr163 mxr163 is offline
Junior Member
 
Join Date: Feb 2010
Posts: 11
Rep Power: 5
mxr163 is on a distinguished road
Default Buying Existing Accounts

I ran into a guy who is looking to get out cutting grass. His wife started a busines and she needs his help now. He has been in business for 11 years.He has 45 accounts all located in the same city. He said he sorta shaped it into the best/non hassle customers. He brings in approx. $1,800 a week but he does not have any contracts with them.

Only thing is that he is asking $30,000.

From reading other posts, that seems extremly high.

I feel that this would be a huge jump for me and is worth a shot but don't want to pay that much. Obvioulsy a price of 15,000 or so would be reasonable but don't want to insult him or get turned away.

Any Advice would be Appreciated.
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 06-07-2010, 02:01 PM
mburse1977's Avatar
mburse1977 mburse1977 is offline
Member
 
Join Date: May 2010
Posts: 67
Rep Power: 5
mburse1977 is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
This depends on how old the accounts are. And how they would take to a new owner. If you lose none of the accounts they would be worth that amount but that is a really big change you would be taken. Over all its over 30,000 in accounts for the year so if you lose none you would break even and leave no cost to fix equipment so i would counter his offer with maybe the 15,000 and see if he takes it. This would give you breezing room Assuming this is just for customers no equipment in that price putting equipment in there changes the game all together.
Reply With Quote
  #3  
Old 06-07-2010, 08:28 PM
Byron3243 Byron3243 is offline
Member
 
Join Date: Mar 2010
Posts: 33
Rep Power: 5
Byron3243 is on a distinguished road
Default

My opinion is their worth almost nothing if their not contracts. Reason being you could buy them and then eveyone stop using you and then the money was just wasted, but this is just my opinion.
Reply With Quote
  #4  
Old 06-07-2010, 10:13 PM
JP Landscaping JP Landscaping is offline
Senior Member
 
Join Date: Feb 2010
Location: Nebraska
Posts: 213
Rep Power: 5
JP Landscaping is on a distinguished road
Default Try this

I would not pay more than $15,000 for the accounts. In fact i wouldn't pay more than about $5000. I think that with $5000 worth of investment in marketing/advertising you could get more than the 45 accounts.

But if you are set on buying them, then $15000 seems to be the top. I've heard people say they pay about 2 months worth of income for the accounts if they are contracts. They pay very little or nothing for non contract accounts.

If equipment is involved, add the fair market value of the equipment to the $15000 and you have a total price. Also, I would place a clause in the purchase contract that if some clients leave then you would be refunded for that client. Or something like you pay 1/2 up front and the rest at the end of 1 year if all clients or a percentage, like 90%, stay with you.

It's a big investment. take your time to think about it.
Reply With Quote
  #5  
Old 06-08-2010, 05:03 AM
mxr163 mxr163 is offline
Junior Member
 
Join Date: Feb 2010
Posts: 11
Rep Power: 5
mxr163 is on a distinguished road
Default

He agreed to cut with me for 2 weeks just to show the ropes n everything. I would try to meet everone and establish what was going on. I thought about making a contract giving a free cut at the end of this year and around the middle of the season next year that way it would sorta be in their best interest to stay with me.

How does that sound?
Reply With Quote
  #6  
Old 06-08-2010, 07:05 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,850
Rep Power: 10
Steve has disabled reputation
Default

Let me ask you this.

If he reworded this offer and said, I will give you 45 lawn care customers for $666 ($30,000 / 45) a piece and you won't make any money off them until next year some time, would you still be interested?

There is a lot to think about beyond that.

How many customers do you have now? How are you going to scale up to take on another 45 customers.

How much will you have to spend to be able to service those customers that you won't be making any money from until next year?

In the past we have talked about a maximum growth of 20% a year or things seem to spiral out of control.

How much growth would this be for you?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #7  
Old 06-08-2010, 04:28 PM
mxr163 mxr163 is offline
Junior Member
 
Join Date: Feb 2010
Posts: 11
Rep Power: 5
mxr163 is on a distinguished road
Default

I currently have 14 that i do and it takes me a little over a day to do those, if i did get those i would be at 59. That is a big jump but i believe i can handle it. I do the work by myself but if i was to get those i would hire a buddy to help me out.

I know i can handle the work.

Biggest obstacle for me now is coming up with the money. It is getting very frustrating trying to get a personal/business loan.
Reply With Quote
  #8  
Old 06-08-2010, 08:35 PM
MAKLawnCutter MAKLawnCutter is offline
Senior Member
 
Join Date: Apr 2010
Location: Central FL
Age: 30
Posts: 249
Rep Power: 5
MAKLawnCutter is on a distinguished road
Default i got burned once

I purchased 15 CONTRACT accounts from a "friend"... i cut differently than he did, i use different eater line than he did... personally i think i had the better cut. He cut with me for 3 weeks, at week 7, i was down to 6 of the 15... not because i did a crap job but because, people dont like change, they would rather CHOOSE whom they have on their property... i wish i would of put that 500$ into advertising...


Matt
Reply With Quote
  #9  
Old 06-08-2010, 11:17 PM
procaliper procaliper is offline
Junior Member
 
Join Date: Mar 2010
Posts: 2
Rep Power: 5
procaliper is on a distinguished road
Default split

Id just do it man!
Reply With Quote
  #10  
Old 06-09-2010, 04:59 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,850
Rep Power: 10
Steve has disabled reputation
Default

Quote:
at week 7, i was down to 6 of the 15... not because i did a crap job but because, people dont like change, they would rather CHOOSE whom they have on their property... i wish i would of put that 500$ into advertising...
How did they go about canceling the service? Did they tell you why they were canceling? Were you able to meet with the customers during the switch? Could you get any further information from them at all to be able to learn from this situation?

Quote:
Biggest obstacle for me now is coming up with the money. It is getting very frustrating trying to get a personal/business loan.
It sounds like you still want to do this.

If you are unable to get a loan to do this, do you have a plan B? What will be your alternative?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
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
Buying old vs. buying newer. rclandscaping Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 5 08-27-2009 05:13 PM
Buying existing lawn business dawnacb1 Starting a lawn care business. 9 02-16-2009 11:07 PM
Buying Lawn Care Accounts LOUROCK Community Assistance 2 10-19-2008 10:31 PM
Buying accounts ProCut TM Community Assistance 10 04-20-2008 11:49 PM
Buying an existing business Clean Lawn General Talk 6 08-29-2007 01:22 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
French gardener owner's...
didgreen
Yesterday 09:10 AM
Today 02:25 AM
by didgreen
3 82
Thanks for all the posts
WheatGrass
Yesterday 06:38 AM
Today 01:29 AM
by WheatGrass
2 76
Landscapers from hell!!
Chilehead
01-29-2015 03:55 PM
Yesterday 11:21 PM
by ExtremeLawncareServices
3 107
hows it going.
uppercut
Yesterday 05:01 AM
Yesterday 11:16 PM
by uppercut
3 81
viking cyclon.
uppercut
01-29-2015 09:12 PM
Yesterday 11:11 PM
by uppercut
2 69
Just Quit?
ringahding1
Yesterday 06:23 AM
Yesterday 10:36 PM
by ExtremeLawncareServices
8 153
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
Yesterday 10:26 PM
by ExtremeLawncareServices
15 841
adding something new...
veteranslawncaresystems
01-28-2015 12:13 AM
Yesterday 09:15 PM
by veteranslawncaresystems
6 194
Crunch time 2015!
Chilehead
01-29-2015 08:57 PM
Yesterday 07:51 PM
by Chilehead
2 79
Government contracts
avetslawncare
11-15-2014 08:50 AM
Yesterday 07:46 PM
by Chilehead
11 894
Lost my @#$ blower
stevef1201
01-11-2015 08:31 AM
Yesterday 04:47 PM
by Just for Cuts
3 472
whats this briggs?
uppercut
Yesterday 12:40 AM
Yesterday 02:49 PM
by Steve
1 59
Say Hello !!!
Steve
03-19-2007 12:18 PM
Yesterday 02:36 PM
by Hard-Body lawn & garden
1,202 363,939
Lawn Mowing -...
ringahding1
Yesterday 07:05 AM
Yesterday 07:05 AM
by ringahding1
0 38
TaskEasy & Plowz & Mowz...
jrwalker333
01-25-2015 01:02 PM
01-29-2015 08:14 PM
by lxarth
8 277
Contact last years...
googus
01-28-2015 09:13 AM
01-29-2015 02:29 PM
by Steve
6 242
Looking for advice on...
berryjam
01-21-2015 07:37 PM
01-29-2015 02:21 PM
by Steve
15 492
New to the forum
LCRobert
01-26-2015 10:21 PM
01-29-2015 09:11 AM
by ringahding1
7 225
What happened to Better...
Steve
01-27-2014 04:07 PM
01-28-2015 12:26 PM
by Steve
21 3,211
Lawn care truck
Steve
10-10-2009 03:40 AM
01-28-2015 12:23 PM
by Steve
44 16,101
Bidding to get other work
Rodriguez11
07-21-2011 11:52 PM
01-28-2015 12:08 PM
by Steve
29 9,480
How many contracts...
5StarLawnscaping
01-12-2015 03:51 PM
01-28-2015 11:04 AM
by ExtremeLawncareServices
10 621
"Part Timers", "Low...
doug1980
06-10-2009 12:55 PM
01-27-2015 09:01 PM
by jrs.landscaping
43 10,383
Is anyone doing mosquito...
BWild
01-27-2015 12:30 PM
01-27-2015 07:24 PM
by avetslawncare
4 162
New to group
ron@alpine
01-27-2015 08:45 AM
01-27-2015 01:29 PM
by Steve
1 134
please Help with none...
Lawnboyman1170
01-09-2015 09:46 AM
01-27-2015 01:27 PM
by Steve
13 802
does this sound good or...
Bradcook21
01-22-2015 09:24 AM
01-27-2015 07:42 AM
by ringahding1
9 358
second year advise
cmdlawncare
01-23-2015 06:22 PM
01-27-2015 07:31 AM
by ringahding1
6 306
need advise
rawssrob
02-23-2010 02:45 PM
01-23-2015 06:40 PM
by cmdlawncare
7 2,643
New to forum
ROB N
01-23-2015 08:35 AM
01-23-2015 01:53 PM
by Steve
1 190
Extending the life of...
rmccutchan
01-17-2015 12:37 AM
01-23-2015 01:43 PM
by Steve
8 439
osceola lawn service
jasa@wildblue.net
01-22-2015 03:23 PM
01-23-2015 01:38 PM
by Steve
1 196
Tax Question
Wolf4dk
01-20-2015 01:11 AM
01-22-2015 02:28 PM
by Steve
4 339
Billy Goat Vac
Mr. Mow
01-19-2015 07:42 AM
01-22-2015 02:18 PM
by Steve
6 325
Property Pricing
GVL
01-19-2015 02:46 PM
01-21-2015 02:18 PM
by Steve
5 387
Landscapers Source For...
breadcrumb
01-16-2015 02:44 PM
01-21-2015 05:55 AM
by breadcrumb
14 552
Hoa advice
Bradcook21
01-16-2015 09:36 PM
01-20-2015 04:30 PM
by Steve
4 374
My Invention
biglee
01-11-2015 07:51 PM
01-20-2015 10:16 AM
by biglee
16 706
How to beat the pre pay...
stansg1fresh
01-13-2015 04:33 PM
01-19-2015 03:38 PM
by ringahding1
3 443
Hello from Md
homey
12-17-2014 06:55 PM
01-19-2015 01:37 PM
by Steve
12 1,255
Hi from Illinois
burtle
01-02-2015 09:46 PM
01-19-2015 01:22 PM
by Steve
3 605
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
01-19-2015 01:20 PM
by Steve
14 1,553
Another Illinoisan.....
barhopper
01-11-2015 05:38 PM
01-16-2015 04:29 PM
by Steve
10 527
marketing with pizza...
apmAkron
01-15-2015 09:57 AM
01-15-2015 06:29 PM
by Steve
4 338
CRM and Quickbooks?
5StarLawnscaping
01-15-2015 08:06 AM
01-15-2015 08:06 AM
by 5StarLawnscaping
0 270
New Member, Indiana Iraq...
Timbo
07-14-2011 09:44 AM
01-14-2015 06:14 PM
by Steve
10 3,858
check this box truck out!
BLAZIER-1991
01-07-2015 07:40 PM
01-13-2015 03:06 PM
by biglee
8 735
My community only ad...
googus
01-12-2015 09:55 AM
01-13-2015 02:44 PM
by Steve
5 428
12 Years in Business!
Chilehead
10-23-2014 09:07 AM
01-13-2015 09:37 AM
by Chilehead
18 1,932
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
01-12-2015 06:32 PM
by BLAZIER-1991
30 1,684
» Popular Tags
4wd 4x4 aerocore apartment bid apartment complex applying auger bark billy goat brushcutter blades bush collections deliquentaccounts ditches employee problems equipment rental estimate ferris first truck flyers foreman four wheel drive google gopherhaul grass growing a lawn care business hiring husqvarna introduction jobs john deere quik trac 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 seo lawn care website lawn care website seo lawn mowing marketing mr dave mulch per hour charge per hour service podcast pricing pto push versus ride reo running a business seo shell small engine repair snow plowing square foot starting a lawn care business steep lawns steve sulky theft toro grand stand trailer tree trimmer rack up sell employee walk behind
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:13 AM.


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

All times are GMT -5. The time now is 06:13 AM.

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