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View Full Version : What is the difference of buying a business or building one through advertising?


premierlawncare
02-08-2006, 03:45 PM
What is the difference of buying a business or building one through advertising?

Most posters here think that lawn biz's are not saleable assets. My question is if you can buy 100 accounts for example for $40,000, what is the difference in spending $40,000 in advertising/marketing to get the 100 accounts?

1st, I like this guy DFW Area Landscaper, he has alot of energy and I think he will be a millionaire one day. My point is this guy is spending money to "START UP" his business. I have seen alot of these examples and others have stated that they dont think they will make alot of profit the first year.

2nd, marketing to start a business can be more risky than buying an existing business. The reason is you might not get a good return on investment. For example the market might be tight, you might not be good at advertising etc.


PTP,

I've been following your threads in the elements of business forum and it seems you and I are on very similar paths this spring. I have no idea how you are able to make things work on a $10K initial bankroll, but if it's working out, that is great. I started this year with $80K, although the checking account has never fallen below $17K this year. There was a lot of CapEx this spring.

Anyway, I've got 205 customers right now. I do not count one timers. These are all customers who are on the schedule for either mowing or chemical apps or both. We've distributed just under 51,000 door hangers so far this year. The growth has slowed dramatically but that is because spring fever is over and we are only distributing about 150 door hangers on Mondays and Tuesdays. I've got one of the new crews (still one man crew) almost filled to capacity with mowing M-F. The other new crew (also one man) is at capacity T-F. The three man crew is at capacity Th-F for mowing and so far they've only had two Saturdays off this spring. They do chemical apps and clean-ups/shrubs M-W and on Saturdays.

The crew leaders all making good money. My shrub crew leader made $1,200 this week after quality bonuses and commissions. I know you have already experienced churn with your crew leader and I know that must be torture having to train a new guy with no experience. So far, I've been lucky, because no one has quit on me and no one has screwed up so bad that I've had to let anyone go.

Things are going VERY well for me right now. We grossed $26K last month and we've fross $19K so far this month, with 11 days still to go in the month.

Long story short, I will be very disappointed if I don't clear $100K in 2006 from this business because I know there is no excuse if I don't. Profits will be a lot lower this year because of all the start up costs this spring. I intend to add one more crew next spring. I think four crews is all I want. It really isn't a problem in May, but it was torture in March & April with the phone ringing non-stop.

Later,
DFW Area Landscaper

You guys need to start thinking like business owners. Accounts and a business name have value. You can sell it when you want to get out. Talk to a business broker and learn about the value.