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General Business Discussions

A place to talk about general business discussions.
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  #11  
Old 04-08-2005, 08:37 PM
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This is from our Business Consultant Joel. I don't think this part was answered yet.

Quote
Also estimate how much revenue to expect to make each month. Use the numbers that the Gopher Team asked you to come up with (new customer goals) and try to put a dollar amount to each customer. The net result for your plan is a list of each month of the year and the expected revenue for that month.


with the cheapest mow @ $145month

customers monthly income
15 $2175
25 $3625
40 $5800
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  #12  
Old 04-09-2005, 02:47 PM
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Hi Frontier Lawn,

OK, thanks for clarifying those numbers. Here is a quick snapshot of your income statement based on your estimates:

* I have used your lowest revenue numbers. Of course, if you succeed in getting more customers then this number will go up.

Also I have assumed that your $145 lawn cut charge includes waste removal (which you said is currently $25 based on 3 customers) so I adjusted the waste disposal charge to account for more customers.

Revenue 2175

Expenses
Advertising 50
Equipment Fuel 25
Equipment Repair/Maint 25
Insurance 50
Truck - Gas & Oil 75
Truck - R & M 10
Internet Access/Hosting 5
Office Supplies 15
Telephone and Fax 90
Waste Disposal 125

Total Expenses 470

Net Income 1705

As well, attached is a pie chart of your monthly expenses.

My book provides more details on how to put together a more thorough business plan including how to complete all the reports and charts you need ...and I would recommend you do this (The book will be available at www.mowboy.com in about 2 weeks). However, this will suffice to get you off and running right now. *

Do you have any specific questions about the business that I can help you with?
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  #13  
Old 04-09-2005, 03:31 PM
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latter on whats good to expand in to on other green industry products
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  #14  
Old 04-09-2005, 03:57 PM
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Quote:
Originally Posted by [b
Quote[/b] (Frontier-Lawn @ April 09 2005,1:31)]latter on whats good to expand in to on other green industry products
If I understand your question, you are asking what areas can you expand into. I would suggest providing your existing customers with more services. You mentioned about fertilizing being a bunch of red tape but this can be a high profit service that is probably worth the hassle in the long run. Try to offer your customers full service or you may find them switch to a company that does.

So other than cutting you can offer beds maintenance, trimming and pruning, planting, fertilizing, lawn weed control, lawn specialties such as aeration, lawn renovations/rejuvinations and top dressing.

Keep learning more about horticulture and try to help (and profit) from anything your customer needs for her lawn and garden.
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  #15  
Old 04-10-2005, 10:34 PM
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also would ether for you know how hard it is to get a SBA Loan for $10,000 for some new Equipment?
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  #16  
Old 04-12-2005, 07:55 AM
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Hi Frontier-Lawn,

I don't know about that. Maybe mowboy can help.
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  #17  
Old 04-12-2005, 09:01 AM
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So whats next on the agenda?
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  #18  
Old 04-12-2005, 04:39 PM
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Hi Frontier Lawn,

Re the SBA Loan I had to check into it a little as it differs a lot in Canada and in the US.

How hard it is depends on your own situation. Overall, you have to jump through quite a few hoops and you are examined quite thoroughly when you apply for an SBA loam.

Here are the very basic qualifications to get a business loan:

- You must have a reasonable amount already invested in your business.

- Your business plan and other business document must be very detailed. What we have done here (with Gopher) is only touching the surface compared to what they will want to see. You really need to explain everything about your business, why you need the funds and your plan to pay it back. You'll need income statements, balance sheets and long-term forecasts. Lots of paperwork! Also, expect to have your personal credit scrutinized (not just the business).

- You will need collateral to secure the loan.

So you will have to answer the question as to whether it is worth it or not.

I hope this helps :-)
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Old 04-12-2005, 05:36 PM
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Hi mowboy,

Have you known others who have done this? Would you suggest going this route? If you would suggest against it what would you suggest in place of doing this?
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  #20  
Old 04-12-2005, 06:14 PM
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Hi Team Gopher,

Good question. I have not actually known anyone who has got an SBA loan. Most find it too much work to satisfy the eligibility requirements... so I would not recommend this route.

If you are need of capital the easiest type of loan to get is a basic personal loan. You'll still need the collateral but they will not ask for financial statements, forecasts and the like. This is the route that I have used in the past and it is the route I would recommend for Frontier Lawn and other small/medium sized LCOs if they are in need of capital.
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