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View Full Version : Trimming the fat


casey
12-05-2001, 08:14 PM
Was wondering how many will be trying to cut overhead & employees next year vs. expanding their operation.

bruces
12-05-2001, 08:56 PM
I just started part time this year.

I will be looking to expand next year and go full time the following year.

ronslawncare
12-05-2001, 09:17 PM
simple math

more employees =more money

also more employees equal more headaches
though

but first you need the work to justify a employee. if your doing it partime solo is good. full throttle you would want more employees

LoneStarLawn
12-05-2001, 09:56 PM
Originally posted by ronslawncare
simple math

more employees =more money



Absolutely not. The law of Diminishing Returns comes to mind. You need to have profit in mind with everything you do.

Randy Scott
12-05-2001, 10:13 PM
It will definately seperate the men from the boys when it comes down to survival in the industry. Maybe this is a good thing. Those that can actually run a business and know their expenses will rise above those that think they can.

LAWNGODFATHER
12-05-2001, 10:15 PM
Since I have already done a cut back and clients just keep coming to me. I would say growing.

ronslawncare
12-05-2001, 10:28 PM
thats why i wrote you need to have the work before hiring. if you pay your help 100.00 a day or 500.00 a week whatever and you are cutting about 25 lawns a day .at 30.00 per cut 750.00 minus 100 .00 650 left thats enough to pay your work mans comp and still have a large profit .the more work you have the more money.but if you have your guys standing around looking at you or washing your truck than you should be a solo operator.theres a company close to me that services over a thousand residentials weekly multi million corp. im convinced employees is a must.it takes money to make money.show me a solo operation that does 3 mill in sales a year.

casey
12-05-2001, 11:19 PM
Would likely be able to line up enough customers in the spring for another crew but not sure it would be worth the headaches.
More equip, customers, employees, overhead vs. the added income of another crew.

LoneStarLawn
12-05-2001, 11:21 PM
Originally posted by ronslawncare
thats why i wrote you need to have the work before hiring. if you pay your help 100.00 a day or 500.00 a week whatever and you are cutting about 25 lawns a day .at 30.00 per cut 750.00 minus 100 .00 650 left thats enough to pay your work mans comp and still have a large profit .the more work you have the more money.but if you have your guys standing around looking at you or washing your truck than you should be a solo operator.theres a company close to me that services over a thousand residentials weekly multi million corp. im convinced employees is a must.it takes money to make money.show me a solo operation that does 3 mill in sales a year.

Trust me it is not that simple. More employees does not mean more money. For a solo going to add one employee yes the equation will work if there is work, but the transition from 20 to 24 employees will not necessarily fit the equation.

strickdad
12-06-2001, 04:09 AM
trust me lone star is right on this one. more is not always more. more most of the times is less. a company with 50 employees will never be as efficent as a company with 5 employees

ronslawncare
12-06-2001, 10:36 PM
why is that.i seriously want to know because as i see it everything this company touches it turns to gold .of course your not going to add 24 new employees at once .when work justifys more employees .

LoneStarLawn
12-06-2001, 10:42 PM
Originally posted by ronslawncare
why is that.i seriously want to know because as i see it everything this company touches it turns to gold .of course your not going to add 24 new employees at once .when work justifys more employees .

Unproductive hours...transition time...employee expenses...turnover..etc..

My reference was the transition from <b>20</b> to <b> 24</b>.

Sometimes you have to take a step back to take two steps forward.

ronslawncare
12-06-2001, 10:56 PM
my mistake i read the post to quick .

65hoss
12-07-2001, 12:39 PM
3 Mil in sales doesn't guarentee ANYTHING!

I am in the process of scaling back to be able to work entirely alone. Looking at profitability instead of revenue. Going to try to get the aerating in high gear for 2002.

SprinklerGuy
12-07-2001, 03:21 PM
Absolutely there is a fine line between growth and more money.

You should figure out your cost of being in business down to the hour, if not the minute and then figure out how much more money each employee can generate. This will let you know if it is feasible or not. Sometimes I think money is the last thing to be considered.

I am about to hire another guy and I don't think I even have enough work for him BUT, that being said........him being on board should provide me with some relief and headaches. And when spring comes I can stop saying no and start saying yes to phone calls soliciting work from us.

this is my third expansion, for me 1 guy is usually a crew, so everytime is a worry. But, they have all worked well, expecting this one to work out well also.

walker-talker
12-07-2001, 04:06 PM
65hoss,

How many employees do you have now? I know of a local here that did the same. Scaled down to just himslef. Said he had higher profit and much less headaches.

Matt

ronslawncare
12-07-2001, 05:07 PM
yea but how much can a solo operation handle not much serioulsly .pretty soon the wear and tear gona kick in .spreading yourself out to thin going to make you loose more work than gain.
i know that its possible to about a 100 or so accounts weakly solo but why would want to.even that much i would have at least one guy working maybe even two guys every 50 accounts add a helper every 100 add a truck .i know that its much more to this but being solo puts a limit on your work always.

LoneStarLawn
12-07-2001, 05:31 PM
I dont think you can say being solo is better or worse. It is just what the owner prefers. I know I couldn't work solo. Never did, never will.