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View Full Version : How to make my accounts worth money, to prepare for sale?


mrusk
01-31-2006, 11:36 AM
Alright guys. End of the year i am moving out of NJ so i am going to sell all my lawn accounts and equipment. How do i make my accounts more valuable?
Right now i have no contracts or service agreements. I plan on getting every customer to sign one this year. But what should i have in it to make the accounts easier to sell?

I know we all say on here accounts are only worth 6 weeks gross tops. However i see people selling accounts for alot more then that. Ofcourse i want to sell the accounts for as much $ as i can.

What advice can you give me?

YGWBill
01-31-2006, 02:36 PM
i know i guy that just sold his accounts for 25.00 each

jpmako
01-31-2006, 02:57 PM
Alright guys. End of the year i am moving out of NJ so i am going to sell all my lawn accounts and equipment. How do i make my accounts more valuable?
Right now i have no contracts or service agreements. I plan on getting every customer to sign one this year. But what should i have in it to make the accounts easier to sell?

I know we all say on here accounts are only worth 6 weeks gross tops. However i see people selling accounts for alot more then that. Ofcourse i want to sell the accounts for as much $ as i can.

What advice can you give me?

Where In NJ?
I might be interested.
PM me the details.

Thanks,
Jason

Birdjr
01-31-2006, 03:39 PM
i might be interested also depends on the location send me an email jdiesel187@optonline.net thanks jim

milo
01-31-2006, 03:54 PM
i am going to be selling like 15 accounts that will not have time to do this season.. i think i will sell just the accounts for $4000.00 that is like paying for 1 big comm. job for a season and then throwing in 14 others with it. jobs only all take like 8 hours to do all with driving.. they are in allentown bethlehem PA anyone like to buy them. also could add some equipment to this to if needed

premierlawncare
01-31-2006, 05:52 PM
Around here Lawn businesses sell for about 2 months gross to 6 months gross. It also depends if you are selling the whole business or just some stray accounts. Also add for equipment, trailer, truck etc.

I see alot of guys on here saying lawn accounts aren't worth anything, but this is not true.

Most guys who say that don't have money to buy out other businesses and never have.

You have to remember 2 things:

1. When someone buys accounts or a business in general, they are buying an INCOME (which everyone needs) or a head start into the business.

2. Lawn businesses who sell their businesses too low are LOW BALLING just the same as LOW BALLERS who service accounts for a too low of price. Basically they are KEEPING THE MARKET PRICE DOWN for when you sell your company/business. (let that sink in)


I have learned that there is a retail price and a wholesale price for accounts. You want to try to sell your accounts for retail. and buy accounts wholesale.

I think 6 months gross is around retail price and 2 months gross or less is wholesale.

OH BY THE WAY, down here, people buy lawn , pool, and other businesses all they time. I see some listed for very high prices up near a MILLION DOLLARS.

One quick story, I just talked to a guy who just bought a lawn biz for more than $200,000. Thats right $200,000 +++. . He just got out of the corporate world and needs a........ high income!!!. Remember everyone needs income.

Oh, selling accounts for $25, I will take some of those, LOL. As long as the monthly rate is right I'll buy those all day long.



Another way to look at is what is the replacement cost of the account and business. How much time (which is $$$) and money (more$$$) would it take to advertise, go bid, and get 1 account.

YGWBill
01-31-2006, 06:50 PM
with no contracts the accounts are not worth a lot.

nobagger
01-31-2006, 09:02 PM
I don't think there is anything you can do to "increase" their worth, they are worth what their worth. I just bought a company and I paid 1 months revenue for them.

daveintoledo
01-31-2006, 09:07 PM
no sale.... and even with contracts, thats no guarantee they will stay with the new LCO...besides, when you are gone someone can just aggressivly market in that area anyway.... and they still get the accounts without paying for them...

premierlawncare
01-31-2006, 09:25 PM
Dont listen to negative. List your business with a business broker.

1month biz doesnt even make sense. You could train a worker and make more than 1 month running it in the ground , unsupervising it. If your worker lasts more than 2 or 3 months than you are at a break even if you sold it for 1 month gross.

Evergreenpros
01-31-2006, 10:47 PM
Get them under contract is the best way, drop the low profit ones if you can, replace them with a higher profit job.

zero_turn_mowers
02-01-2006, 12:30 AM
In 2002 I bought a contract that earned $33000 a year for $25000, it came with some equipment I sold off for $12000 left me paying $13000, each year additional services have been added now we are at $40000. So from 2002-2005 that one contract has made nearly $150,000 in revenue and cost me only $13,000 out of pocket. Not only did I get this contract over the years I picked up on other contracts for "Free" for being refered (Its one of those deals where I got my foot in the door, Guess you would call it the buddy system) Now I have income from those contract as well with only a small investment in 2002.


Tim

stevo22
02-01-2006, 01:12 AM
with no contracts the accounts are not worth a lot.
ummm, ok whatever...maybe where you live the contract thing happens...around here i do not know of anyone that has contracts on residentials...i might be completely off base...don't know...personally i have never had anyone sign a contract for me to cut their grass for the year...this will be my fifth yr and to date i think i am short $180-225 from one person not paying...and i think it is because he was prob arrested...always prepaid me 5-7 cuts at a time with $5's and $10's...found his door smashed in...looked like one of those big steele bars they use on cops...
i can understand if it is a big commercial gig of somesort...

talked to a buddy of mine that within 1.5 yrs went from working solo to 8 trucks and workers and someone bought him out for $150k...if anyone here is from the memphis/tipton county area i'll share it...

nobagger
02-01-2006, 06:14 AM
ummm, ok whatever...maybe where you live the contract thing happens...around here i do not know of anyone that has contracts on residentials...i might be completely off base...don't know...personally i have never had anyone sign a contract for me to cut their grass for the year...this will be my fifth yr and to date i think i am short $180-225 from one person not paying...and i think it is because he was prob arrested...always prepaid me 5-7 cuts at a time with $5's and $10's...found his door smashed in...looked like one of those big steele bars they use on cops...
i can understand if it is a big commercial gig of somesort...

talked to a buddy of mine that within 1.5 yrs went from working solo to 8 trucks and workers and someone bought him out for $150k...if anyone here is from the memphis/tipton county area i'll share it...
I don't know how you guys that don't use contracts can even run a business like that. I personaly wouldn't think its a legit business if I were a customer (IMO).

Roger
02-01-2006, 07:07 AM
No contracts here either -- plenty of work to do without spending time enforcing some clause in a contract.

I have taken over some customers from other LCOs for various reasons and never paid anything for them. They were just happy to have somebody take the work because they had too much work to do with other properties, or the properties were too far off their primary route. In nearly all cases, the customers were not "bummers" that somebody was trying to get rid of because of problems.

To me, the law of supply and demand has to be at work on this matter. If an area is very sparse for new customers, then the value will be higher. If there are plenty of customers so an LCO can find their own customers to fill the schedule without paying, then the value will be low, or nothing (like my previous paragraph). What ideas apply in one area doesn't necessarily apply in another area.

stevo22
02-10-2006, 02:11 AM
I don't know how you guys that don't use contracts can even run a business like that. I personaly wouldn't think its a legit business if I were a customer (IMO).
never had a customer question it...the only customers that i have lost during a season were a couple here and there that just move...and still did not lose every one...just the ones that moved out of town...the ones that move around town have taken me with them...i have gotten pretty good at being able to tell right off the bat whether or not they are going to be a problem to work for...not sure if you were trying to imply that i am not a legitamate business or not...i won't even touch that...i was simply stating that around here i don't know many if any that use contracts for residential's...

Collin
02-10-2006, 10:22 AM
I would buy pretty much any account for $25 each. You would be crazy not to.