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weed wacker 2
09-11-2010, 09:52 AM
Im thinking about calling it quits or selling out within the next year. I don't know if im getting burnt out or what. I have worked hard at since I quit college in 06 and have built up a good business. It seems like it gets harder every year to pick up good clients. The full maintenance customers are just hard to come by. Ive been trying to push the spraying side more than anything now. Everyday I see more and more in this business and discourages me. The city I mostly work in has 200 city licensed lco with a population of 50k. I believe that there is another business to get in with less competition and more profits. I know that each area in this country differs in this industry, I just don't see myself retiring in this business with amount of money that my area will allow you to make.

cut level
09-12-2010, 09:09 AM
wow that sounds like a ton of competition in the spraying side. That sounds crazy absolutely crazy! How easy is it to get a spray license if you never sprayed under anyone before?

People think you cant get a license to spray in Tenn unless you have sprayed for 2 years under someone but that is false.

Panhead
09-12-2010, 09:19 PM
I'm in the same position. Alot of LCO's around cutting grass in my area. Last Thursday, I seen a LCO go up my street to cut my neighbors grass.... I've tried from advertising, etc and it really doesn't help out much or even a little.

ACA L&L
09-12-2010, 10:11 PM
2 years and college credits industry related here.....NM, try and come up with a plan for your business name to be out there, everywhere, all the time. newspaper, val pak, door hangers, radio ad, website, yellowbook online, search engine maximizer, whatever and however. This year we put 10 grand into advertising and we are still booked up til xmas! Haven't run anything other than a add in a local magazine that comes out monthly, after we did the 3 month campaign of direct mailers, followed by door hangers, and newspaper adds, along with website........it works, focus on one area and hit it hard, yard signs on corners works for usas well. Everytime we put em out on friday we are loaded by sat pm with estimates. every job is not huge but it keeps the steady flow of cash coming in on top of the mowing revenue.........if your gonna do it , do it big.

weed wacker 2
09-12-2010, 11:16 PM
The spraying around here is getting like the mowing. Its not that hard to get your license in arkansas. They need to make the test harder and crack down on the illegals. This business is all I know. I have never done anything else The money doesn't seem like its there unless you go big because every year you invest back into the business to make it grow.

coolluv
09-13-2010, 06:29 PM
Im thinking about calling it quits or selling out within the next year. I don't know if im getting burnt out or what. I have worked hard at since I quit college in 06 and have built up a good business. It seems like it gets harder every year to pick up good clients. The full maintenance customers are just hard to come by. Ive been trying to push the spraying side more than anything now. Everyday I see more and more in this business and discourages me. The city I mostly work in has 200 city licensed lco with a population of 50k. I believe that there is another business to get in with less competition and more profits. I know that each area in this country differs in this industry, I just don't see myself retiring in this business with amount of money that my area will allow you to make.

Same situation here in Atlanta, tons of LCO's. I was at the bank the other day talking to the manager, she asked me how business was, I said so so, she said yeah I talk to other guys in your business and they say the same thing. She said, you know I talk to a lot of people during the day and every one that is out of work says they are starting their own business, and when I ask them what that business is, they say landscaping. I just laughed,and I started to tell her a little about the reality that is this business. I too wonder if I made a mistake in getting into this business, I have no choice right now as the business I was in is far from coming back. I started this part time as a way to get my feet wet and experience what it was like to run a business.

I didn't have to worry about making money back then, it was a side gig. Now I have to pay the bills with it, thank god my wife works and I have no children. We barely get by and with winter coming and no rain in weeks, things are going to get tough. Leaf jobs down here are not that popular. I wonder if I'm just taking one step forward just to take two steps back. I know business owner's in other businesses that are doing waaaaaaaaaaay better than I am, with the same amount of time invested. I don't know, It is expensive to run a legit business and with profit margins as low as they are and the amount of people in this business ( and growing all the time) I wonder if I may be throwing good money to bad.

There are a lot of people on here that Bull$hit and flat out lie about their situations, and the new guys come on here and believe it. I did too for a while, but you get educated real quick if you pay attention. My advice for you new guys, don't believe everything you read on here, its a hard business that demands hard work,deep pockets, with little return. And as long as these boards are full of Bull, there are going to be more guys running out to buy mowers and make the big money like everyone on here. Most on here are young guys with no real financial responsibilities, and have nothing to lose. If you have a house and a wife and kids and all the usual stuff that goes with being an adult, you might want to rethink this line of work.

Right now I'm doing what I have to do, but we will see if I stay in this or not. I'm thinking not.

Dave...

Springmeadows
09-13-2010, 10:02 PM
cooluv said it well. I started in 1991, and all what he said is my story too. Lots of bulls**t on here. This industry is going down further everyday.

weed wacker 2
09-13-2010, 10:20 PM
I think there are alot of people on here that do not know the real numbers of their business.

coolluv
09-14-2010, 11:48 AM
I think there are alot of people on here that do not know the real numbers of their business.

What numbers? I'm cashing checks every week so I must be making money.

Dave...

BrunoT
09-14-2010, 12:59 PM
You can't try to work with a population of 50K and expect big city profits, especially with a lot of competition. Consider expanding or moving your area of operations. I hear stories here of guys who think it's horrible if they have to drive 45 min to reach an area that might be a rich vein of work. Meanwhile, they fight over customers 10 min from home.

You can't expect people to continue to use what is a luxury service in the same numbers as before the recession. "Full service" is certainly that. What there is a market for is the basics. Yes, the new startups flock there. But they turn off the solid middle class customer with poor reliability, no know-how, and bad image. I have not seen much price resistance mowing and trimming shrubs (the stuff that can't be ignored by anyone) on a per-mow basis. I know others will do it for less, but a solid citizen understands that she'd rather have a professional, knowledgeable, reliable lawn guy for $40/cut than a succession of losers offering to do it for $25 and butchering it.

Grass type and lot layout matters. If you live where someone can hop on a lawn tractor and get it to look decent, you'll have a harder time than where the grass is hard to cut and get to look right. Hilly lots scare off do-it-yourselfers. So do lots with tons of edging to do. Here, Bermuda is what makes many toss in the towell and hire a pro. Consider honing your niche'.

Be sure you are not erecting your own barriers to success. Hitting prospects with a massive MANDATORY plan of fert/squirt, weeding, mowing, mulch, shrub work, leaf cleanup, etc and a 12 mo contract on top of that may not result in as much total income as offering what they WANT on a casual "fire me if I don't do a good job" basis. People are afraid to commit in this economy. They may not mind your price, but the commitment. Or they may not want the works, just the basics.

Be sure you are as efficient as you think you are. Depending on equipment mix and labor quality some accounts are much better than others for a particular business. All that detail work the full-service boys love to sell requires cheap labor (you can't charge $90/hour for hand weeding).

I get an avg well over $70/hour on-site just mowing, and I don't even try to raise prices much. Some accounts this week were so easy to mow with dry weather that I was running $100/hour and nobody says a peep about price to me, ever. Because I do what they want, reliably, and don't insist on them having a perfect lawn for me to service it. If they have weeds and don't mind them, I don't either. If they don't need the shrubs pruned every month, I don't insist on doing them. If the lawn is full of weeds I'm happy to have something to mow during the droughts. This "low end" many scoff at returns the most, and is relatively management time free. I get a call in sprign and never speak to them again all year. A pristine high end home you'll be getting requests and questions constantly.

I would be very scared today if I relied on selling full-service, contract service. Consider a niche' modification if you want to continue.

sehitchman
09-14-2010, 03:48 PM
We cut way back this year. My son had an opportunity to get a real job in a warehouse and I said take it. It works with his college schedule and he's happy. Started the year like a house a fire and then 1/2 of our accounts wanted a lower price because of the $25 lawn mowing signs. I just said, if you think they will do it like you want, hire them. Feel free to call us if it does not work out. Several came back after 60 days or so, right when it was 100 degrees out in July. A few more came back when it got to hot for the new guys. Overall, we kept our core customers and did not hesitate to let go of the slow paying or pain in the xxx ones. I still keep way busy with home improvements and handyman work, the mowing seems like it comes and goes. I don't see how anyone can make it as a single or family operation and stay legit. The cost for insurance and health care would be difficult to keep up with. You almost need to be in this PT and fly under the radar with the IRS or far larger. I've run the numbers, for me to quit my full time job and make a go of this, it would take myself, a helper, and two crews of two just to cover expenses. I've had lots of employees in the past, don't want that headache again. This is strictly a needs based economy, people have given up the luxury of perfect landscape and the yard guy for $50 when the guy on the bike pulling a mower does it for $15. I've got family in Dunwoody, way up scale part of ATL. I go over there last week, comment "Uncle, I'd fire your lawn guy". He said he did, does it him self, stopped watering, and no fertilizer. Said with the market down, they don't have the income to afford all of that any longer. That type of customer seems to be the norm around here.

weed wacker 2
09-14-2010, 09:32 PM
I have a variety of customers, from the weedy mow and goes to the just do watever it takes to make my property look good customers. All of them have there own perks. I can tell you this, The commercial market in this region is for the birds. You can have an account one year and another lco come in at 100 dollars cheaper and they will give it to them the next. I learned a long time ago that residential has a better retention rate for sure.

kilgoja
09-14-2010, 09:42 PM
from what i've seen being single or doing a one man operation is the only thing that will work....the more workers you have the more customers you are gonna need to make enough money for their pay and extra mowers etc...being one man you only have to have one ztr,trimmer,and blower basically....then if one breaks down you can borrow a replacement from a family member until it's out of the shop or until you buy a new one...which you should have money set back for this kindof thing anyways so when it happens you are prepared...anyways with less equipment and no workers to pay your expenses are way lower than the people out there with 3 crews of 3 people each having 3 trucks, 6 mowers, 6 blowers, and 9 trimmers...i mean to pay for all that you have to have a ton of accounts going.....where as a one man show you would need a lot less to get your bills paid...if you are trying to support a family off of lawn care that's gonna be hard to do....most wives work nowdays so if they have a job with health insurance that takes care of that big expense...even if they don't make alot of money...having the insurance is a big bonus...but yeah things have been tight lately...hopefully next year the economy will snap out of this funk it's in...i think everyone is tired of it and we all want things to get back to normal so to speak

soloscaperman
09-14-2010, 11:15 PM
from what i've seen being single or doing a one man operation is the only thing that will work....the more workers you have the more customers you are gonna need to make enough money for their pay and extra mowers etc...being one man you only have to have one ztr,trimmer,and blower basically....then if one breaks down you can borrow a replacement from a family member until it's out of the shop or until you buy a new one...which you should have money set back for this kindof thing anyways so when it happens you are prepared...anyways with less equipment and no workers to pay your expenses are way lower than the people out there with 3 crews of 3 people each having 3 trucks, 6 mowers, 6 blowers, and 9 trimmers...i mean to pay for all that you have to have a ton of accounts going.....where as a one man show you would need a lot less to get your bills paid...if you are trying to support a family off of lawn care that's gonna be hard to do....most wives work nowdays so if they have a job with health insurance that takes care of that big expense...even if they don't make alot of money...having the insurance is a big bonus...but yeah things have been tight lately...hopefully next year the economy will snap out of this funk it's in...i think everyone is tired of it and we all want things to get back to normal so to speak

Your right but there is a limit with just one person working. What happens if he is injured? It seems most of the industry to make it big it has to be volume or the kid with the little mower charging cheap since he has no bills. Those little kids at max can pump 1-15 lawns a week. Chances are they blow it on candy and toys but once there little timmy mower breaks there screwed. This industry feels like a hamster in a wheel. Hate to say this but the guys in my area that are making it big are the ones that hire 3 illegal mexicans and also not reporting half or even all of there taxes. I call those the Fat cats like the CEO's that overseas jobs to save a buck.

CutterCutter
09-19-2010, 01:41 AM
Forget about finding a business with less competition. I don't care what business you go into, competition will be a constant. Plumbers, remodelers, builders, pizza joints, realtors, insurance agents, doctors, lawyers, etc etc. Everybody faces competition.

The key to this business or any business for that matter is developing good customers. For every five or six people that you start mowing for only one is going to be that good customer you're looking for. Heck, the odds might not even be that good. So you have to wade through a bunch of people to finally get to a solid group that will help you make the money you want with the amount of effort you want to put out.

Only a few will have the attributes that make them good customers. To make it work you have to hold up your end too. Do your best to show up on the same day each week and maybe even at about the same time. The good customer will get accustomed to you being there. It helps them get accustomed to paying on the same day over and over. And be sure you do a decent job. It's also important to be friendly and engaging, assuming the customer has the time for that. Some don't. If I see the customer while I'm there I always ask how they're doing and will engage them in conversation if I can.

Sales people call it "high touch" selling. Show real interest in what's going on in their life if they want to talk. If you spend ten or fifteen minutes talking to a customer you didn't waste that time. It will lock you in on that job and will result in referrals. You won't have to worry about someone undercutting your price. I've had customers tell me someone offered to do it for less but they aren't interested because I've just about become family. People really appreciate being treated well because it's so rare.

Finally, you've got the hardest part behind you. The first few years. If you stick with it for another four years you'll be amazed at how much easier it gets. I work alone and don't want more business but if I wanted more business I'd wear some kind of screen printed tee shirt with my business name and number printed on the back. I'd have the same thing on my truck/trailer in easily read letters. I'd put a bunch of business cards on bulletin boards in grocery stores. I'd put out a bunch of little roadside signs.

There's a heck of a difference between a good customer and the average or worse than average customer.

MR-G
09-19-2010, 06:56 PM
we make a higher net on the basic by the cut accts. than the avg. full service...people just cant afford the higher level of service anymore...we push what we call the (quickie-cut-service) mow, edge trim, blowdown....thats it !! 2 man crew can do 500.00 every day with no trouble...its not the highest numbers but it is busy....our goal at this point is focused on volume....10-15 trucks would be nice....we are at three now doing these numbers....having said that we do hava full service routes...2 trucks 3 man crew on each....numbers are good on these but the other accts. just wont pay for the full service.....we all have the ability to customize our services to meet the needs of the clients....you create an image to a wider market....you will have a larger base.....my 2 cents.

weed wacker 2
09-19-2010, 07:42 PM
WE usually do anywhere from $600-$800 with a two man crew. When I was solo I was doing $400-$500 a day mow and go. On our spraying accounts, there is more profit but competition is rising and prices are dropping.

rollinrock
09-25-2010, 01:47 PM
I noticed a few killer ideas here that would really turn your business around.

#1. Niche out your business. If you are in the spraying sector - come up with a special area where you are the expert. People want to work with the best. And they pay for it.

#2. High Touch Selling. This is a people business and your customers have to like.Maybe find a low cost gift for your top customer. This will set you apart. Even from the $25 lawn mow guys.

#3. Offer more services. Can you clean windows? Re-paint house numbers on the curb? Pressure wash the drive way? Remove stains from a driveway?

Remember the word day is 8 hrs. if your not cuttting grass you should be talking to new potential business.

mngrassguy
09-25-2010, 05:13 PM
Forget about finding a business with less competition. I don't care what business you go into, competition will be a constant. Plumbers, remodelers, builders, pizza joints, realtors, insurance agents, doctors, lawyers, etc etc. Everybody faces competition.

The key to this business or any business for that matter is developing good customers. For every five or six people that you start mowing for only one is going to be that good customer you're looking for. Heck, the odds might not even be that good. So you have to wade through a bunch of people to finally get to a solid group that will help you make the money you want with the amount of effort you want to put out.

Only a few will have the attributes that make them good customers. To make it work you have to hold up your end too. Do your best to show up on the same day each week and maybe even at about the same time. The good customer will get accustomed to you being there. It helps them get accustomed to paying on the same day over and over. And be sure you do a decent job. It's also important to be friendly and engaging, assuming the customer has the time for that. Some don't. If I see the customer while I'm there I always ask how they're doing and will engage them in conversation if I can.

Sales people call it "high touch" selling. Show real interest in what's going on in their life if they want to talk. If you spend ten or fifteen minutes talking to a customer you didn't waste that time. It will lock you in on that job and will result in referrals. You won't have to worry about someone undercutting your price. I've had customers tell me someone offered to do it for less but they aren't interested because I've just about become family. People really appreciate being treated well because it's so rare.

Finally, you've got the hardest part behind you. The first few years. If you stick with it for another four years you'll be amazed at how much easier it gets. I work alone and don't want more business but if I wanted more business I'd wear some kind of screen printed tee shirt with my business name and number printed on the back. I'd have the same thing on my truck/trailer in easily read letters. I'd put a bunch of business cards on bulletin boards in grocery stores. I'd put out a bunch of little roadside signs.

There's a heck of a difference between a good customer and the average or worse than average customer.

Good post. Sounds like you've been around the block a few times....like me.

A lot of things have changed it 20 years and I'm sure the next 20 will see a lot more changes. The key is to change yourself at the same time. Work smarter not harder.

Know your costs. Most on here don't.

PlantscapeSolutions
09-25-2010, 06:45 PM
This business is never a cake walk. Here in central Texas Mother Nature almost killed us last year. We were hit with a once a week watering restriction that was going to jump to a 14 day watering restriction. In San Antonio they did get hit with a 14 day watering cycle. We were extremely lucky and the rains finally came, washed away the trailer parks, filled up the lakes, and saved my butt in a big way.

In this business you have to do what's neccesary to survive. Back in 08' I spent $4K to do the work visa thing. I was legally stealing the workers from a large local company that had unhappy workers. Well, in 08' the wheels came off the work visa program and thousands of small companies across the country got screwed. I hired a few good workers with lets just say "good looking" papers to hold me over until my work visa guys arrived.

2008 came and went and all I had to show for my effort to obey the law was $4K missing from my pocket. Was I going to shut down my business and wait for the government to pop their head out of their azz? Of course not, I did what I had to do survive and make a living. I still have the same loyal guys working for me. Everyone pays taxes like their supposed to and I pay the matching fed 941 taxes which can cost me $1500 - $2000 a month (this matches the $1500 - $2000 the employee's pay).

I don't know how it is up north but here you can't find any decent "born here" help. Usually the crew members born here are flaky, on probation, on parole, or just not worth a crap. I had over 200 born here folks come and go with no success. It kills quality control and stress's you out when every day you don't know if your workers will show up.

My niche is mostly high end residential. I'm very fortunate to have some landscaper friends who don't do maintenance. They gave me some leads in the past that now generate about 40% of my business. Being connected is huge. Join the BBB, and any business oriented organizations you can. Offering contract or pay as you go works well also.

You've got to be diverse to make good money. Mow, blow, & go doesn't cut it. We do fertilization, landscape lighting, Bright Lights holiday lighting, Top Choice for fire ants, arborist work, AutoCad landscape design and installation, and mostly full service maintenance. Just my fert & insect applications on about 50 properties put $20K in my pocket.

I'm able to make a living off myself and my four man maintenance crew. It's dangerous to be a one man show. If you get hurt your out of business really quickly. Plus you can't make much money being solo. I would put the value of my pay and benefits at about $80K. I would say it's hard to make more than $45K solo. Making money off the sweat of your workers and less of your own sweat is where it's at.

Spend your time billing, estimating, fixing what you can, doing the important customer PR stuff, and never stop thinking about your business and what you can do to improve it. There is zero room for complacency in this bizz.

There are a bunch of guys that can cut grass but very few that can set irrigation controllers, and diagnose most any horticultural issue. We keep Finale, Conserve SC, Sedgehammer, Sethoxydim, and Isotox on our truck at all times to remedy a multitude of problems. Your goal in this business needs to always be to make yourself irreplaceable.

Here is our pricing parameters:
Labor- $37.50 per man hour (5% senior and Veteran discount)
Mowing- $40 - $60 per man hour is the goal.

I just picked up a yard that was being mowed by a large company that uses small trucks with utility beds and push mowers. They were mowing the yard for just $25 but doing a crap job on the string trimming. Now we're being paid $54 to do the same yard. We were able to upsell the person on mulch, Top Choice for ants, and our whole application program.

You win some and lose some in this biz. But you have to offer as many services as possible to your customers to maximize your returns. More work on your existing properties and less drive time is a good thing.

Texas Lawn
09-27-2010, 05:52 PM
This isnt meant to offend anyone but the problem is a lot of you just dont know how to run a business. Now, Im not saying Im a genius or have all the answers, heck Ive made a lot of mistakes and failed at things too. Im also not claiming everyone is an idiot and hasnt had some bad luck. But with that out of the way, a lot of people are laborers trying to be business people and it doesnt work.

I talk with a lot of landscapers and they tell me they are doing well. I ask how do you know and the response is always, "Im busy." Well how much money are you making? "I dont know." Well are you in business to make money or be busy? A lot of people dont know their numbers, dont know what they need to break even, dont know what they need to survive.

I hear people complain about competition. Yeah its there and its not going anywhere. Are you upset because of all the competition? Or because you dont have anything that isnt already being offered? If you dont have anything thats different from the rest of the market, why would I hire you? The industry is flooded with people that can cut your yard. If your not doing anything to seperate yourselves or prove why your better, you probably deserve to fail.

A lot of times it isnt that people dont want to switch companies, its that nobody has given them a reason to. Give them a reason to switch. If you can do this, the sky is the limit. If not, it will be hard to survive.

With that said, I hope you take my words with a grain of salt. I wish you all nothing but the best of luck, but I know how tough it is out there. We have an industry with low barriers to entry and that makes for a competitive environment. If you ask yourself at the end of everyday, "what did I do today to help grow my business," then you will put yourself in a mindset that will bring you success. Good luck everyone and hang in there.

kilgoja
09-27-2010, 09:17 PM
competition is not an issue...there is enough work out there for everyone...you just gotta find it

lawnjockey1026
09-30-2010, 10:13 AM
My husband and I acquired our lawn care business from his father about 5 years ago. We have been desperately trying to turn it into a profitable business but his father had been cutting these lawns at cost for over 20 years and living on his SSI and disability. We lost more than half the customer list when we raised prices so that we would be making about 50k yearly, total net income! We have two kids and my husband wants nothing more to see this succeed but cutting is so sporatic and we aren't making enough this year to get by.

Now we have been discussing with a much larger landscaping company plans for a buyout of our 38 remaining lawns and our equipment. Equipment includes 48 zturn gravely rider with bagger and spreader attachment, 2 backpack blowers, 2 weedwackers, 16' open landscape trailer, and one industrial snowblower.

Does anybody know anything about the buyout process or what fair market value for a business of this size might be?

I love the work but times are hard and I need to think about our small children.

punt66
09-30-2010, 10:34 AM
My husband and I acquired our lawn care business from his father about 5 years ago. We have been desperately trying to turn it into a profitable business but his father had been cutting these lawns at cost for over 20 years and living on his SSI and disability. We lost more than half the customer list when we raised prices so that we would be making about 50k yearly, total net income! We have two kids and my husband wants nothing more to see this succeed but cutting is so sporatic and we aren't making enough this year to get by.

Now we have been discussing with a much larger landscaping company plans for a buyout of our 38 remaining lawns and our equipment. Equipment includes 48 zturn gravely rider with bagger and spreader attachment, 2 backpack blowers, 2 weedwackers, 16' open landscape trailer, and one industrial snowblower.

Does anybody know anything about the buyout process or what fair market value for a business of this size might be?

I love the work but times are hard and I need to think about our small children.

not worth much more then the market rate of your equipment. Sorry.

lawnjockey1026
09-30-2010, 10:48 AM
well gee! that just spells it all out for me thanks a million

punt66
09-30-2010, 10:58 AM
well gee! that just spells it all out for me thanks a million

cant expect a no profit company to be worth much. You would be lucky to get 1 month worth of revenue.

lawnjockey1026
09-30-2010, 11:12 AM
Im not expecting it to be worth much, captain obvious. I need to know more about the process.

punt66
09-30-2010, 11:13 AM
Im not expecting it to be worth much, captain obvious. I need to know more about the process.

no wonder why it failed. Can you say attitude. Good luck.

lawnjockey1026
09-30-2010, 12:04 PM
I only develope attitude when Im being treated like an idiot. Thanks, but I've been around and I know it's not worth much but I've never been involved in a buyout. I was looking for a little standard advice, not blanket statements and a belittling of my business endevors. No wonder you're a solo operation. Most people can't stand to be talked down to all the time.

Have fun with your sausage fest boys!

punt66
09-30-2010, 12:51 PM
My husband and I acquired our lawn care business from his father about 5 years ago. We have been desperately trying to turn it into a profitable business but his father had been cutting these lawns at cost for over 20 years and living on his SSI and disability. We lost more than half the customer list when we raised prices so that we would be making about 50k yearly, total net income! We have two kids and my husband wants nothing more to see this succeed but cutting is so sporatic and we aren't making enough this year to get by.

Now we have been discussing with a much larger landscaping company plans for a buyout of our 38 remaining lawns and our equipment. Equipment includes 48 zturn gravely rider with bagger and spreader attachment, 2 backpack blowers, 2 weedwackers, 16' open landscape trailer, and one industrial snowblower.

Does anybody know anything about the buyout process or what fair market value for a business of this size might be?

I love the work but times are hard and I need to think about our small children.

you asked what it is worth, i told you. Sorry you dont like what it is. Put an add on craigslist. List it with a broker if you like but they get a cut. What answer would you like to hear?

zturncutter
09-30-2010, 01:44 PM
LAWNJOCKEY1026, please Google "Shooting the messenger". His answer was accurate and to the point. :dizzy:

BCLawns
09-30-2010, 02:48 PM
lawnjockey1026, I'll give you a general idea.

equipment = $5-7K

accounts are worth 2-3 times the monthly rate.

hope this helps.

cutterschoice24
09-30-2010, 05:33 PM
i have never bought out a business either but figure out what your equipment is worth and for the accounts standard is 2months of what you make so if you make $100.00 per month then that one acct would sell for $200 there is no guarantee that when you sell your business your customers will keep the new person some make sure to spend some time talking to your customers and the person that is going to buy you out so that he can get to know your clients.

Green Side Up!
09-30-2010, 05:52 PM
Your business should be able to sell for approx. 1/3 of the annual income (if you have 100k in valid annual sales your market value would be approx. $33K) and your EQUIPMENT IS WORTH WHAT ANY ONE IS WILLING TO PAY FOR IT. Unfortunatly, in todays market that wont be much.

punt66
09-30-2010, 07:04 PM
you guys are dreaming. 28 accounts with no contracts. pfft.

zturncutter
09-30-2010, 07:12 PM
In 20 years I have never paid more than one months revenue per account with contracts and the used equipment was never purchased because they always thought it was worth much more than it really was.

Roger
09-30-2010, 08:07 PM
you guys are dreaming. 28 accounts with no contracts. pfft.

Tell us again the value of the contract? Pffft, ... contract, or no contract.

Edit: Sorry, one to many "f" in the pfft. I don't spell it often.

punt66
09-30-2010, 08:14 PM
Tell us again the value of the contract? Pffft, ... contract, or no contract.

Edit: Sorry, one to many "f" in the pfft. I don't spell it often.

with contract 1 month of revenue. without? for 28? nada.

Roger
09-30-2010, 08:21 PM
with contract 1 month of revenue. without? for 28? nada.

nah, if somebody chooses somebody else to cut their grass (and the line wanting the work is 10 deep), you drive by and go to your next job. Contract isn't going to stop a residential customer from making a change. Remember, you are only the grass cutter, and have no leverage.

punt66
09-30-2010, 09:01 PM
nah, if somebody chooses somebody else to cut their grass (and the line wanting the work is 10 deep), you drive by and go to your next job. Contract isn't going to stop a residential customer from making a change. Remember, you are only the grass cutter, and have no leverage.

i am with you, thats why i said she would be lucky to get 1 month.