View Full Version : I have two options.
04-01-2002, 10:04 PM
I am currently running my bosses route.About 106 lawns, 20 of them are full contracts.I have the option to buy this winter or let me brother buy and continue as same.Brother is currently running his own route.
What should i consider in my choice?I know by buying ill make that extra money, but will have the headaches and after work , work.Currently by using my own truck i take 50% of what i do.
Any tips on this matter?
04-01-2002, 10:24 PM
not really enough information to help with you decision much. you say you use your truck. do you use your equipment or the boss's. if it is boss's will that be part of the sale?
as far as buying someone out is concerned, the first factor involved would be a no compete clause in the agreement. this is so that the current owner can't go back to the customers and take them back.
it also depends on how much they want for you to buy them out.
also, what if a customer decides not to stay?
you should have it made up so that if someone decides not to retain you at the beginning of next season, that you dont have to pay for that particular account.
is there fertilizing involved, and are you licensed if so?
04-01-2002, 11:10 PM
also, are you an educated person? do you know how to play the numbers game in the biz? Are you organized enough to run a business? 50% sounds decent if you arent.. But 50% of what? More info please.
04-01-2002, 11:17 PM
Well i get 50% of each lawn i do.As far as Fertilizing goes , its customer buy then we apply.We recommend spray guys becasue the granel just sint working here.
And the current owner will be out completely.I take his trailer and equipment(which is what i use now anyways).And the customers will stick with me.I know all of them, i try to take a few mins and get to know them see how they are doing etc etc.Have been with him for 5 years now.Hes only out a day aweek , while i do the rest.
04-02-2002, 12:56 AM
In my opinion, if you are not just totally stoked about being your own boss (regardless of the headaches) then you should stay where you are.
The headaches and work that come with being an owner are only tolerable if you have a burning desire to run a big business and be the boss. Then, it is fun. But if you don't have that burning desire, it will be a drain on you and you'll resent it.
I also agree with Roscioli. You're gonna have to be good with running this business, the numbers, marketing, etc. as well. Do you have strengths in these areas?
04-02-2002, 07:46 AM
O i have the desire for it.Everyday im out im thinking of the changes i want to make.(puttinng all 70 by the cuts on mowing contracts, switching crap hole with nicer lawns as they come etc etc) I want to be the boss.Just want o make suretheres no second guessing with somthing i didnt think about.thks for the help.
04-02-2002, 08:39 AM
Is it good quality commercial equipment? Are you going to have to be replacing any of it soon? This can all affect the cost that you pay to him for the business. Is he legit? Pay taxes, insurance?
04-02-2002, 08:40 AM
one thing to remember, if you buy him out, you take over his liabilities as well as his business. so make sure there is no leins on his property or business. i almost screwed up. so i know what to check out, see his financials before making aqusition
04-02-2002, 09:51 AM
Originally posted by jimlewis
The headaches and work that come with being an owner are only tolerable if you have a burning desire to run a big business and be the boss. Then, drain on it is fun. But if you don't have that burning desire, it will be a you and you'll resent it.
this is one of the bigger differences between myself and a lot of members here. seems like many guys here love the smell of the grass, love working fo themsleves. but they don't really want the probs associated with running an organization. the thought of being behind the desk, even when your the owner, is not for them.
but that is what i want. i just want to run the business, not do the work. i do enjoy the work, esp. plowing, but prefer being the man behind the desk.
first decide which of the two you want to be. do you want to have yourself as the business, maybe with a helper, or do you want to run an organization?
remember as well that running a crew is not even in the same league as running a solo biz, or running an organization. After working 11 hours in 90 degree heat you've got Phone calls, bookeeping, cash flow, accountants, lawyers, insurance, workers comp, finances and leases, marketing. do a search on these topics, should take a few days to read thru:D
and thats the tip of the proverbial iceberg. but if you do make a go of it, the payoff is that it can be the most satisfying and lucrative decision you ever make.
good luck and happy reading!!:cool:
04-02-2002, 11:43 AM
I am with bubble boy to a degree. It is not the work that I like so much, but running the business. I like marketing, estimating, decision making, managing and interacting with people (although I dont do that now in my business because I am solo, but in my 55hr factory job I do). I could not sit at a desk for 8 hours a day, but a few don't bother me.
As far as the orginal post goes, to second guess your decision I think is only natural and called the process of thought. I suggest you weigh your options and always remember....
nothing ventured, nothing gained
04-02-2002, 01:32 PM
You have all summer, fall and winter to do a business plan. I am in the process of doing it myself and you will be amazed how good it looks on the back of a bar nap but how tough it can be to make the bar nap reality.
Do the due diligence.. make sure you know the full side of the business before you leap..
vBulletin® v3.8.6, Copyright ©2000-2014, Jelsoft Enterprises Ltd.