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View Full Version : Thinking about buying my buddies buisness advice needed


tinkz71
06-16-2008, 06:50 PM
I have been offered a fairly resonable deal from a good friend of mine. He has around 45 accounts that pay him $5500 a month and several year round contracts he is asking 35,000. My only problem is that I work a full time job that pays extreamly well that I would be crazy to let go. I currently have around 13 yards of my own. Im at the point I have had to pay a high school student to help on the weeks Im behind. In the price includes a 16ft lawn trialer with a Lesco ztr with low hours and a toro walk behind. He also has a dandy dump trailer in prettty fair shape. I currently have a Leso ztr with just 130hrs on it and its paid for. There are weedeater,s blowers etc. I feel this is a fair price for the amount of income he has coming in plus the amount of equipment. Even though it isnt brand new or extreamy fancy I would think the accounts alone are worth that. I know the accounts because he is the one who helped get me my small buisness start. Plus he is trust worthy because he was my best man at my wedding. I think the only thing that would cost me would a good quality worker and Fuel cost being the biggest overhead. I have a truck and could trade the two older mowers for a new one that would be more productive. I know I have left out alot of little details and questions but overall how does it sound. Any advice from the big LLC guys would be great because you know the overhead for a buisness this size. I will be doing my usual 5 to 6 hrs a day helping the other worker so there is some money saved. Thanks for your help

Charles
06-16-2008, 07:00 PM
Yea that would be many a dream on here. Work a full time job and run a $5500 month lco biz on the side. Too bad its just a dream. The chances of you finding a quality independent worker who would produce that much volume without supervision is not likely. Taking into consideration you helping part-time.

KGR landscapeing
06-16-2008, 07:02 PM
with 60 accounts its a full 5 days of work pending no weather issues just food for thought.

Scagguy
06-16-2008, 08:09 PM
If you're not prepared to quit your other job, then don't do the deal. 35K is a lot of money to invest and then not be there daily to protect and increase your investment.

derbydon
06-16-2008, 08:34 PM
Have you internalized a customer loss percentage on this deal?

There will always be some customers that leave as soon as he sells - always - the question is how many?

k911lowe
06-16-2008, 09:21 PM
sound kind of greedy.gonna work your self too much and burnt out from worrying.

hef37087
06-17-2008, 06:48 AM
The only way I would consider it would be to talk to the customers with him and get their input to the deal. Make sure that you would get the jobs, otherwise the price just dropped, because the equipment alone would not be worth the price.

supercuts
06-17-2008, 07:27 AM
if you think all that is worth $35k, come out here and ill give you a deal! what are you nuts?? your going to do a full summer worth of work and give it to him?? maybe one week or possibly a month at the most ($5500) worth of work to be paid over is still a lot, plus equip, which isnt even worth all that much. what is a used trailer, ztr and wb worth??maybe $8k??

i wish i had customers as dumb as this!

AI Inc
06-17-2008, 07:35 AM
if you think all that is worth $35k, come out here and ill give you a deal! what are you nuts?? your going to do a full summer worth of work and give it to him?? maybe one week or possibly a month at the most ($5500) worth of work to be paid over is still a lot, plus equip, which isnt even worth all that much. what is a used trailer, ztr and wb worth??maybe $8k??

i wish i had customers as dumb as this!

Im with this guy, those accounts are not worth a penny over $6k. One months gross is the norm. Flame away.

thomaslawn
06-17-2008, 07:36 AM
First off ask yourself if this is really what you want. If you're currently working a full time job and having trouble keeping up with your 15 accounts, just imagine adding 45 more to your schedule.
The biggest challenge you are facing is hiring the right person to service these accounts without supervision while you are working your regular job. Trust me, this will be a challenge. It is extremely difficult to find good employees that can be trusted to take on that much responsibilty.
You will most likely be working 7 days a week, become so stressed out that you lose sleep and STILL never be fully on schedule.
If you are looking to grow the business do it slowly, it sounds as though your regular job pays well and is tolerable.
Picking up 45 accounts is not that difficult, certainly not worth the 35k. Why don't you double your clientele number and see how that works out. Trust me the numbers sound great, but after all expenses are taken out your $5500 per month revenue is going to equate to roughly $2000 per month. Ask yourself if it is worth the headache for this amount.

Donald A
06-17-2008, 08:23 AM
I'm not a professional like the majority of posters on this site, so I can't say wheather this is a good deal or not, my gut says no.
The area I do have some experience with is doing business with FRIENDS. I have found your friends will burn you more often than someone you don't know. I'm just saying....

larryinalabama
06-17-2008, 08:24 AM
if you think all that is worth $35k, come out here and ill give you a deal! what are you nuts?? your going to do a full summer worth of work and give it to him?? maybe one week or possibly a month at the most ($5500) worth of work to be paid over is still a lot, plus equip, which isnt even worth all that much. what is a used trailer, ztr and wb worth??maybe $8k??



I have to agree, If you already have 15 accounts thats good parttime work. If you want to invest money buy a good dump truck and backhoe, you can make 100$ per hour and work at your scedule. Your investment will be secure. Loose those 45 accounts you lost 35000$, THATS A HARD HIT

AdamChrap
06-17-2008, 09:12 AM
i don't understand why anyone with a "Great paying job" does this on the side

tinkz71
06-17-2008, 03:01 PM
Thanks for the advice. I think I will stay where Im at now with my 15 yards. It pays an extra $2000 gross enoungh to own a nice ztr and help my family out when they need it. If I get burnt out I can always continue to volunteer for more over time at my full time job and make 48$ an hour and not work near as hard. I guess I was getting greedy but forgot all the hard work involved to make that extra money. I dont think thats the quality of life Im looking for. Thanks for your input.

supercuts
06-17-2008, 08:58 PM
you can also pick a few more lawns on your own and grow slowly without paying for it, but rather making $$$ for those new lawns

DuallyVette
06-17-2008, 11:41 PM
Im with this guy, those accounts are not worth a penny over $6k. One months gross is the norm. Flame away.

My thoughts exactly.

milkie62
06-18-2008, 01:07 AM
I have a very good paying "SECURE" job but there is something extra that I always want.Can't really take it out of the household money so I do work on the side.

AdamChrap
06-18-2008, 08:16 AM
I have a very good paying "SECURE" job but there is something extra that I always want.Can't really take it out of the household money so I do work on the side.

Ok well this is were I get reamed to no end so please read all of this before going off. I understand the guys who are mowing part time because they are starting out and you can't start out with 100 customers. But the guys that are mowing part time for extra money and have zero intentions of this being a full time job are usually the guys that are not insured or paying taxes and that really pisses me off, If you are doing these things more power to you thanks for doing it the right way.

I'm thinking of starting a part time surgery center out of my back office. You know you need your appendix taken out? Come on in! I'll do it real cheap just don't tell anybody because I know it's silly but I really should have insurance, license and all that good stuff!

Sorry just needed to rant a little..wheeeeoooo I feel better..........