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 > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Buying Lawn Care business


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 09-29-2004, 12:11 PM
sprinklerguy
Guest
 
Posts: n/a
Default

I did a search....nothing to find.

I know this gets asked a lot...so I will try and keep this brief. Never had a lawn care business before...been around lots of maintenance companies in 12 years...never owned one. Am considering it....here is what I have found:

company #1
solo operated...55k per year in season....8 months or so....no snow work....basic mow and trim....bush trimming when needed is extra.....aerifiying and dethatching..extra as well.

52 clients....aerifier and dethacher included....basically buying goodwill and phone#.

Price : $5500.00

Yay or nay? Never wanted to be a solo op..but I see it as a challenge....the extra income would be quite helpful...my business in Arizona is able to run without me for the most part...I can schedule and route from the field. no problem...do that now anyway. Perhaps the lawn care business is ready to be expanded w/ employees?


Business #2

102 clients....2 employees...owner is absentee for the most part...wife answers phone...does about 80k for the season....most of that eaten up by employees i would imagine....but still profitable.

All equipment needed to operate is included...truck/trailer...3 walkbehind xmarks 32"...1 21" toro pushmower....2 string trimmers...2 blowers....2 aerifiers...1 power rake....etc....probably not new equipment but usable....

Price $25,000.00 CASH ONLY.

Or would it be better to buy some equipment and do advertising?

My opinion:
I would think that the solo operated business is perfect for me...small enough to get my feet wet and work it myself for awhile...see if I really want to do this...downside is that I would need to buy equipment. Upside is I could probably keep 75% of these clients...he is really talking me up to them and they seem ok with it. Maybe grow this business enough to hire some guys.

Any thoughts?
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 09-29-2004, 12:45 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Hi sprinklerguy,

Let us ask around for you and get some responses to your question.
__________________
- 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
  #3  
Old 10-01-2004, 11:05 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Hi sprinklerguy,

Here is a response from "aquamtic" of P&G Systems-Underground Lawn Sprinklers
Serving Rhode Island and Southeast Mass
License# MI000193

In my opinion- I would say that the solo business is a more reputable seeing that it is operated and managed by the owner. With the other- who really know how many of those 100+ customers are happy customer.

Go with the solo and you'll build that 100+ customer base before you know it for 20 grand less
__________________
- 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
  #4  
Old 10-01-2004, 11:07 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from "parkwest" Boise, Idaho, USA

"second one sounds like a business. first one sounds like buying a job. Would need to see last 3 to 5 years of tax returns and financials to see how the numbers work out (ROI)before making an offer and starting my due diligence."
__________________
- 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
  #5  
Old 10-01-2004, 11:09 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from "tonygreek"

I would lean towards buying the 5.5k business or investing in starting his own. The range set is 5.5k - 25k and if starting your own, this range is a pretty nice budget to learn from the ground-up and invest in new equip and marketing.

With the 5.5k business, if you toss out 2k of it to cover the equip, that leaves 3.5k for what's essentially a customer list (no mention of contracts). 67 dollars for what amounts to a lead and not a sure thing. The term "Goodwill" can be ironically disappointing. If you spent that 67 dollars on prospecting your own customer, you'll be able to add another feather to your "I Understand What Makes a Business Tick" Hat.

To further expand upon the 5.5k business, the numbers provided, over an 8 month period, equates to approx 33 dollars a cut, or a shade over 2 cuts where you make zero dollars right off the bat. I'd offer him the equivalent of one cut and work from there.

Makes me wonder if there's a thread on here on "What are the true costs of gaining one customer"?

Tony,
Dayton, Ohio
__________________
- 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
  #6  
Old 10-01-2004, 11:17 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from "Bill Parrish of Fine Lines Lawn"

I get a better gut feeling about the offer of Business # 2. You would be getting some hardware in the deal and could become more profitable by sending one of the employees to one of your friends in the business who really needed him. Then shock the employee that you keep by working with him and improving customer relations by being a working owner.
__________________
- 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 10-01-2004, 11:18 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from "DanK"

I say haggle with the price more on #2.

Find out the best you can if the employees are top notch and dedicated. How long have they worked with THAT business? I figure if they have basically been running it by themselves they might be able to handle being team leaders. If so, maybe....maybe hire another employee to make a total of 4 with two crews with you being in one of them. Just throwing some ideas out there.
__________________
- 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
  #8  
Old 10-01-2004, 11:19 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from "Mike J"

The first one sounds a little better to me, but I would use the money on advertising if you already had equipment.
__________________
- 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
  #9  
Old 10-01-2004, 11:20 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from " Stephen M."

The purchase price per client in company #1 is $105.77 and the overall gross is $1057.69 per client.

In company #2, the purchase price per client is $245.10 and the overall gross is $784.31 per client.

This should be a no brainer after looking at the numbers. However, after you look at the equipment for longevity, and factor it into the purchase price, #2 might be more attractive.
__________________
- 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
  #10  
Old 10-01-2004, 11:21 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Here is a response from "Phil Nilsson of Nilsson Associates - Profit Building Ideas for Lawn & Landscape Professionals"

IMHO ... don't purchase either ... sales dollars per customer account is too low to make it worthwhile given other options "out there". That's a lot of "chasing around" for low gross sales.
__________________
- 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

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
New Trailer
bobwill2009
Today 12:46 PM
Today 12:46 PM
by bobwill2009
0 17
Advertising On...
JacobsLawnMowing
03-17-2014 03:21 PM
Today 12:40 PM
by Steve
12 827
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
Today 12:37 PM
by Steve
7 207
Pushy customers
christopherhicks82
Yesterday 08:22 PM
Today 12:34 PM
by Steve
4 107
Pond...
xandrew245x
Yesterday 03:29 PM
Today 12:30 PM
by Steve
3 78
2.5 acre mowing
xandrew245x
04-18-2014 06:55 AM
Today 12:26 PM
by Steve
14 311
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
Today 12:17 PM
by bobwill2009
79 25,279
The $20 Mow Job
Dan Tanner
04-21-2014 07:24 PM
Today 12:06 PM
by Steve
5 176
In a bit situation need...
googus
Yesterday 08:01 AM
Today 12:03 PM
by Steve
6 130
quickbooks users
CDLAWNCARE
04-20-2014 09:03 AM
Today 06:48 AM
by CDLAWNCARE
4 163
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
Yesterday 07:55 PM
by Just for Cuts
23 574
About D@## Time!
TamMik
04-02-2014 08:10 AM
Yesterday 05:14 PM
by BelleCityLawn1
19 856
Back for this year
xandrew245x
02-21-2014 04:30 PM
Yesterday 03:36 PM
by xandrew245x
19 998
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
Yesterday 12:29 AM
by Tony317
22 1,699
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
Yesterday 12:07 AM
by Tony317
9 435
danny 2
danny2
04-19-2014 10:19 PM
04-21-2014 12:25 PM
by Steve
3 135
this mower is driving me...
boog
04-17-2014 12:07 PM
04-21-2014 12:10 PM
by kslawn
13 341
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
04-21-2014 12:02 PM
by kslawn
20 576
I Got Taken...,
Dan Tanner
04-19-2014 06:26 AM
04-21-2014 11:49 AM
by Steve
4 220
new to this forum!
mower13126
04-18-2014 07:37 PM
04-21-2014 11:39 AM
by Steve
4 146
REO calling
Dan Tanner
04-16-2014 05:03 PM
04-21-2014 11:33 AM
by Steve
12 343
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
04-20-2014 04:40 PM
by Dan Tanner
20 6,870
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
04-20-2014 11:13 AM
by ExtremeLawncareServices
32 1,202
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-20-2014 11:11 AM
by kslawn
10 361
Customers droping like...
goodtimez
04-18-2014 09:53 AM
04-19-2014 08:09 AM
by CDLAWNCARE
7 224
Best Bulk Mulch delivery...
Steven Virgadamo
04-18-2014 09:52 AM
04-18-2014 05:34 PM
by Steve
2 99
Steve Virgadamo,...
Steven Virgadamo
04-18-2014 09:49 AM
04-18-2014 05:08 PM
by Steve
2 81
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
04-18-2014 04:51 PM
by Steve
3 175
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
04-18-2014 04:47 PM
by Steve
5 238
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
04-18-2014 04:39 PM
by Steve
9 253
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
04-18-2014 04:04 PM
by stevef1201
10 278
leaf removal
tlf59263
04-15-2014 10:00 PM
04-18-2014 03:59 PM
by stevef1201
6 235
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 633
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 797
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 146
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 341
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 129
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 773
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 286
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 229
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 366
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 272
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 152
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 286,640
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 523
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 525
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 232
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 494
Hello all
Griff20114
04-12-2014 05:08 PM
04-14-2014 09:46 AM
by Steve
1 147
Step by Step Spring Lawn...
WarriorLawnscaping
04-10-2014 07:01 AM
04-14-2014 09:43 AM
by Steve
5 310
» 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 04:26 PM.


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

All times are GMT -5. The time now is 04:26 PM.

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