Net 100k

[dmk395]

I know in this business that our overhead is large, but was just wondering if anyone was able to net 100k (or close you dont have to give exact details) If so how many guys are working with you, how many hours average per week, how many months a year does it include?

[TylerAssociatesLLC]

to net 100k profit you have to gross atleast 400-500k
so figure it out that way. it also depends what line of work your in and the amount of overhead.

[turfman99]

If you got 100K net the first time you hit 400 or 500K you would be lucky. Get to 600, then you should be netting a 100K without a lot of trouble. 500K gross net 100K is realastic.

Dale Wiley
Landscape Business Systems

[bob]

We had a simular discussion on ,how much do you make. Most people are reluctant to disclose their income- including me!

[LoneStarLawn]

This topic is about profit not about your income. Your pay should be considered an expense therefore the net would be the amount after you have been payed (plus overhead and such). Alot of people are reluctant to give out such information. Whether it gross sales or net profit many people will not disclose that information. Some trade magazines have bio's of large companies that actually include gross sales. Many of those are over 1 million, but I have seen a couple with $250,000 to $300,000 in gross sales.

[Vibe Ray]

How many men do you guys think it would take to net 100K? I am curious about how many y'all think it would take.....Please answer.

[Bryan McMullen]

I looked into buying a lawn service last year that was for sale in my area.I never met the gu that owned it because he had it up through a broker.He gave me a book that had everey detail of this guys businesse in it.He had no debt and grossed 207,000 and netted 80,000.

[parkwest]

39% profit margin?? That guy should be writing books on his secret formula. My CPA says most contractors are in the 5% to 8% range net profit.

[VLM]

It's my belief that one guy alone could gross 100k. Now it all depends on how you calculate the net. If you have a truck and equipment paid in full, your only expenses are fuel and maintenance. 12 jobs a day @ $40 each $480 = $2,880 /week (6 day) = $11,520 /mos for 9 mos = $103,680! Throw in 4k for sidework and off season projects and you have 108k.

I set this goal for myself 2 years ago and hope to reach it 3 yrs from now. I believe it can be done, although I'm not sure if anyone would want to do it twice. Kinda like climbing Mt. Everest.

[LoneStarLawn]

Though truck and equipment is paid in full it should still be taken in account for the fact that you paid for them (Number #1) and the fact they will depreciate over time (Number #2). Other factors labor, advertising, bank charges, payroll, TAXES..I guess some may not pay that (self -employed is 15% alone) and many others. Make sure you have everything accounted for.

[VLM]

Lonestar, I am all too painfully familiar with my self employment tax as witnessed by that thick manila folder sitting on my bureau collecting dust as I pretend I don't see it every day and March 15th approaches.

[LoneStarLawn]

its april 16th

[VLM]

Sorry, that's my own deadline for doing the dirty deed!

[rdh]

i had a scag dealer tell me he has guys that he sells to make a 100,000.,and then go to FLA,TO CUT IN THE WINTER i dont think he was joking.may have just been a sells pitch .

[hortusa]

VLA, I don't know how it is in VA, but I can't see it. 12 jobs a day (by your self) I guess just mowing and blowing, and I presume the lots got to be bigger than 60/100 which I mostly deal with around me to get $40 for ea. And for 6 days a week, which you must be working through all the rain and bad weather? With also leaving one day for side jobs and no days for rest or to catch up with paper work. I think if that is all true you will be dead within 2 years of wear and tear on your body.

[MLI]

I read in one of the Pro mags that for every worker a company has, you should roughly be grossing 60 g's. Ive played the senerio out in my business, and feel its very close. You have to take into account rain days, days in the heat and humidity(slow you down), holidays etc not including drought! This year we'll have 6 people, so lets hope the numbers play out, i'll let ya know..lol.
One thing you might want to consider, if your a sole operator, and your trying to gross $100g's, is that youll end up working 6-7 days a week. Youll have to make up for raindays. Youll be away from your familes and kids, you wont have a social life, and worst of all you can go through burnout. I will say this, if people want to make sacrifices, anything is possible, but it all comes down to quality of life, friends, family, and what ya need to pay the bils and save some too.

[TJLC]

Wow, I would only have to cut about 25 10,000 sq. ft. yards a day!!! by myself, no problem, what am I waiting for. Bring it on.LOL

[parkwest]

Originally posted by VLM
If you have a truck and equipment paid in full, your only expenses are fuel and maintenance.

If you do not include expenses like your office(even if it's in your home) cell phones, time spent managing your business (as opposed to working for wages mowing lawns) in estimating your overhead, you are screwing up. Think of it as letting the public use you, part of your house and your equipment for free. Don't forget the money you have tied up in your business, could have been invested in a mutual or even a CD earning you a return. And also your taxes are an expense to get to a net profit.

[Edited by parkwest on 02-11-2001 at 09:44 AM]

[goose]

If you are self-employed profit and net are really the same thing.If what you pay yourself is up to you then you can show your net to 1%. If you gross $300,000 and pay yourself
$100,000 , but at the end of the year you have $30,000 left over then you netted 10%. Or you can pay yourself$120,000 and net only 3%. I net o%but I profit everything.
We do about $61,000 per man.(full time)

[thelawnguy]

Originally posted by VLM
If you have a truck and equipment paid in full, your only expenses are fuel and maintenance

Your depreciation is still a big expense, unless you expect the new truck and equipment fairy to leave stuff under your pillow some day...

[Runner]

Whoa! Back to reality!