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bcmower
07-08-2006, 12:40 AM
im in the process of buying out my boss for the maintence side of the business. This year we will do $149,000 in grass cutting. We use 5 guys to get everthing done all working around 50 hours a week. i will also be buying the mowers and the trucks.
we have a : 2000 F-350
2001 F-250
2006 scag wild cat with bagger
2002 exmark turf tracer
2005 scag w/b
3 lawn boys
3 still trimmers
1 back pack blower

Fvstringpicker
07-08-2006, 01:13 AM
Here's a good place to start. You've got 5 guys working 50 hours per week or 250 man-hours per week. If your average wage is $10/hour that's $2,500 per week not including payroll taxes, workers comp, etc. You better take a sharp pencil to this one.

PLM-1
07-08-2006, 01:17 AM
Here's a good place to start. You've got 5 guys working 50 hours per week or 250 man-hours per week. If your average wage is $10/hour that's $2,500 per week not including payroll taxes, workers comp, etc. You better take a sharp pencil to this one.

I was thinking the same thing. I do that SOLO!

o-so-n-so
07-08-2006, 01:46 AM
I would say your making almost as much as your boss is right now without all the headaches.

bcmower
07-08-2006, 01:49 AM
yeah i figured that all out my boss makes $7,000 a month profit that he puts in his pocket after taxs, gas, and workers comp and if you think you can cut what i do by your self please come show me what your secret is. I am not some fly by night company i have been doing this for 11 years started with 8 yards and now have 103 and growing every week

Tight Angles
07-08-2006, 02:17 AM
yeah i figured that all out my boss makes $7,000 a month profit that he puts in his pocket after taxs, gas, and workers comp and if you think you can cut what i do by your self please come show me what your secret is. I am not some fly by night company i have been doing this for 11 years started with 8 yards and now have 103 and growing every week

It takes 5 guys to do 103 accounts a week? Is each account a few acres or are you doing apt. complex's or something?

rodfather
07-08-2006, 08:09 AM
Either your pricing is low or the employees don't move very fast for $149,000 annual revenue.

Mowerboy88
07-08-2006, 10:49 AM
just a sugesstion....... i have a crew of 16 guys for every 25 accounts i add a new guy this works out to be good. one day I went out by my self and did 25 in one day with a 32" lesco to see what one man could do. You have to sit down and think to your self if i make X amount can i still be making X? when you start to get big it really is a 3's game but hey, 5 guys will do and best of luck to you buying your company.

GrassBustersLawn
07-08-2006, 01:43 PM
Did boss SHOW YOU A "P & L" for this year to date & last year...proving the $7k in his pocket a month?????? If not, GET ONE! It will tell you what his EXPENSES are and if he is SKIPPING any...like TAXES, insurance, etc.


On info YOU PROVIDED:

$149,000 GROSS
30 week season (est.)
= $5,000 Gross per week.

5 employees working 50 hrs/wk (assume $10 per hour)

$10 x 40 = 400 x 5 = 2000
$15 x 10 = 150 x 5 = 750
TOTAL PAYROLL per week = $2750

Payroll taxes = $275 / wk

GASOLINE? = $300 / wk

INSURANCE ?
Warehouse rent?
REpairs
vehicle maintenance

$5000 - 2750 - 275 - 300 = 1675 - OTHER EXPENSES???

$1675 x 4 = 6700 / month without NUMEROUS OTHER LEGITIMATE BUSINESS EXPENSES.

GET P & L and find out what he is REALLY MAKING (for this year & last year). If he doesn't have a P&L to give you (quickbooks can do it in 5 seconds) then RUN AWAY!!!

Mike

dKoester
07-08-2006, 07:47 PM
:) Fly by night

K.Carothers
07-09-2006, 02:57 AM
yeah i figured that all out my boss makes $7,000 a month profit that he puts in his pocket after taxs, gas, and workers comp and if you think you can cut what i do by your self please come show me what your secret is. I am not some fly by night company i have been doing this for 11 years started with 8 yards and now have 103 and growing every week


Hi!

I am a bit confused here.

You thread is about buying your Bose out, right? At the same time you consider "you" as the company???

What am I missing???

I am also from the burg!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You can't bs a bs'er!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

kc

Evergreenpros
07-09-2006, 02:43 PM
im in the process of buying out my boss for the maintence side of the business. This year we will do $149,000 in grass cutting. We use 5 guys to get everthing done all working around 50 hours a week. i will also be buying the mowers and the trucks.
we have a : 2000 F-350
2001 F-250
2006 scag wild cat with bagger
2002 exmark turf tracer
2005 scag w/b
3 lawn boys
3 still trimmers
1 back pack blower


I wouldn't touch that with a ten foot pole. I guarantee you can make more profit on your own with a 21 inch mower and some good customer relation skills.

specialtylc
07-09-2006, 04:34 PM
im in the process of buying out my boss for the maintence side of the business. This year we will do $149,000 in grass cutting. We use 5 guys to get everthing done all working around 50 hours a week. i will also be buying the mowers and the trucks.
we have a : 2000 F-350
2001 F-250
2006 scag wild cat with bagger
2002 exmark turf tracer
2005 scag w/b
3 lawn boys
3 still trimmers
1 back pack blower
I would go talk to a firm that specializes in selling business's . They can help you come to a real worth of the business and its assets. Its better to spend a little money upfront for their service and negotiating skills, that way you can come to a fair price for you and your boss.

rodfather
07-09-2006, 05:16 PM
I would go talk to a firm that specializes in selling business's . They can help you come to a real worth of the business and its assets. Its better to spend a little money upfront for their service and negotiating skills, that way you can come to a fair price for you and your boss.

Exactly. They're called A&D (acquisition & divestiture) firms.

Quail Creek LC
07-09-2006, 07:04 PM
$149,000 in mowing with 5 guys, 50 hrs a week. I can hardly see where you would even break even with that amount. No wonder why he wants to sell it.

rodfather
07-09-2006, 07:13 PM
Even at everyone being paid just $10 an hour (nothing more for overtime), he's got 70 grand in just labor alone. Now add in 11% matching employer taxes and WC (at that state's going %), labor is gonna eat up well over 50% of total revenue.

Like I posted earlier, either pricing is too low or employees are doggin it IMO.

Surf'n'Turf
07-09-2006, 07:18 PM
according to industry data, most landscaping firms average 50-70k in revenue per employee...going low with 5 guys you should be at 250k or so.

meets1
07-09-2006, 08:23 PM
Good post for me to read. I need to change a few things cuz I run with that many guys and bit more gross Rev. but my quickbooks is saying positive things but I'll be checking more into depth on the Per Profit area! Thanks for the post though!