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, 01:11 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, 01:45 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:05 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:07 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:09 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:17 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:18 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:19 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:20 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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, 12:21 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,603
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
How much do you up sell...
Essex Groundskeeping
Yesterday 07:13 PM
Yesterday 07:55 PM
by jrs.landscaping
1 37
leaf removal
Double J LLC
10-03-2014 05:24 PM
Yesterday 07:46 PM
by ExtremeLawncareServices
21 2,350
New website
Chilehead
11-20-2014 04:39 PM
Yesterday 07:40 PM
by Just for Cuts
12 238
This sucks...
Matther777
09-18-2014 05:56 PM
Yesterday 11:56 AM
by achri12
15 3,118
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
11-22-2014 10:49 PM
by Just for Cuts
16 496
Pics for website
tbtigers03
11-21-2014 05:40 PM
11-22-2014 10:01 PM
by Just for Cuts
3 123
Peco Bagger
AGPS
11-18-2014 02:20 PM
11-22-2014 05:56 PM
by AGPS
9 292
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
11-22-2014 02:42 PM
by stevef1201
22 6,121
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
11-21-2014 09:48 PM
by ExtremeLawncareServices
174 13,978
Hello from Kentucky
TRV
09-30-2014 06:42 PM
11-21-2014 09:38 PM
by TRV
6 1,267
Contract or no contract?
TRV
11-20-2014 09:18 PM
11-21-2014 09:33 PM
by TRV
3 153
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
11-21-2014 08:02 PM
by stevef1201
4 316
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
11-21-2014 07:05 PM
by acrajchel
13 372
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 108
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
11-21-2014 06:32 PM
by Steve
7 212
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
11-21-2014 06:07 PM
by acrajchel
15 474
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 937
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 481
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,841
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,442
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,186
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 759
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 526
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 464
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 317
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,359
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 249
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 510
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,593
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,706
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,822
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,677
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 418
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 618
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 324
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 378
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,325
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 602
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 504
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
11-10-2014 01:25 PM
by Steve
2 341
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 306
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 317
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 561
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 365
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 421
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 455
hello, new to this site
tonyorwig
10-31-2014 10:49 PM
11-04-2014 02:24 PM
by tonyorwig
3 647
Aloha from Hawaii.
Gary R
11-02-2014 12:44 AM
11-03-2014 03:02 PM
by Steve
1 555
Pavers
crieg122
10-28-2014 03:49 PM
10-31-2014 01:49 PM
by Steve
6 860
Hi Steve From West...
Mr. Mow
10-21-2014 02:59 PM
10-31-2014 12:56 PM
by Steve
5 1,185
» Popular Tags
2wd apartment complex bark billy goat brushcutter charge christmas collections edging employee problems equipment rental exmark ferris first truck foreman georgia gopherhaul grass gravely hills holiday how much to charge husqvarna hydraulic jobs labor cost landscape services lawn lawn care lawn care business podcast 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 lighting lighting brass outdoor lights managing a lawn care business marketing monthly mowing mr dave mulch mulch price new business past due per hour service podcast push versus ride redmax savannah scag v-ride seo shreaded small engine repair starting a business starting a lawn care business start up lawn care business sulky theft toro tractor auger trailer trimmer rack up sell employee walk behind walker wood wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:00 AM.


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

All times are GMT -5. The time now is 03:00 AM.

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