Part-time or Full-time - need advise

[lawnperfections]

Kinda long, sorry.

As always, all helpful comments are welcomed. I have been considering going full-time. I have a great full-time job (Sr. Programmer Analyst) for the largest non-profit hospital system in Jacksonville (job is very secure). I have a great boss and work with great people in a job that I got real lucky to get, considering I have no programming degree or experience (too long of a story to explain). If I left I would never be able to get this good of a setup again. I currently make $53k a year at the hospital.

Now comes the dilemma.

My business is currently contained in my neighborhood of 350 homes ($160k-260k). I have all new 2002 paid for equip and very, very little overhead. I have insurance and pay taxes.
I only do maintenance and cut after work on Thurs and Fri. and 6-8 hours on Sat for a total of 15 hours +/- a week. This year I will gross $37k (estimating $43k + next year) even after turning down allot of work.
My thinking is if I can do $37k in just 15 hours a week in my own neighborhood, with no advertising, just think what I could do if I actually tried. I live in the hottest area of town for new homes and I know there is plenty of work out for me because above all I'm reliable, professional, friendly and Oh yeah I do a pretty damm good job.

I plan to continue to be part-time until next Christmas when my house will be paid off, that would make it less scary & risky if I have no debt whatsoever and have 6 months of expenses in an emergency fund, just in case. After that I need to make a decision because doing both is going to KILL me. I haven't really taken a break or a real vacation in 3 years and my wife would like to see more of me too, however she does like being a stay at home mom and having all that extra spending money.

My questions are:
1. For the part-timers what do you do full-time?
2. Would you give it up to go full-time?
3. What would it take for you give up your full-time job?

For the full-timers:
4. What does good health ins. cost. (I’m 32, wife 30, son 10 months all in good health)
5. What other things should I consider before making the leap?
6. Any other helpful comments are welcomed.

Also, if there are any RELIABLE guys on this site that work the Kernan Rd area of Jacksonville, I have customers that are looking for someone to do landscape work.

Sorry so long,

[bruces]

I have been a CPA for 28 years. Last year I started mowing a little.

This year I decided to kick the lawn care up a notch, so after tax season, I started working mornings at the accounting office and doing lawn care in the afternoons.

Next year I am considering going to full time lawn care (probably will still work tax season).

As far as insurance goes, I don't know, I am covered under my wife's employer.

I am like you, I think that I have a lot of potential business if I had time to pursue it and do the work. I think that I can make up my part time accounting income fairly easily if I devote full time to lawn care.

[SIG]

Hey Luke,
I am almost in the same situation. I currently make $50,000 a year as a purchasing manager for a contractor. I will also be around the same gross you are making mowing, plus I have Snow Removal, sometimes. My thinking is this, if you think 50,000 a year is alot of money, great, keep your job. I personally don't think it is that much. I could not have bought my house, built my entirely too large pole building, and my new deck (ALL THIS YEAR), just by working my regular job. So, my answer is this, I am done this year. My expenses are fairly low, and I really do not enjoy what I do 40 hours a week, and I have 45 min. commute each way to work and back (PITA). THAT'S MY STORY AND I'M STICKING TO IT!

[Blessed 1]

I too am new in the business and I am a Production Shop Planner (civilian) for the USMC. When I retire I will go full time but until then I choose to keep my full time job and cut in the evenings. To come out on top you will have to make $87k (50+37) before you will see any benifit to quitting your full time job. Thats a lot of pressure. I will keep my job besides if I were full time I sure would not have time to keep up with this forum like a do. :D

[SIG]

Bottom line is this: In order to make ALOT of money, you must be willing to have employees, deal with those headaches, and training etc.etc. Solo operations are great if that is what you want to do. But if you get hurt, sick, vacation whatever who is going to run your business. I believe you need to find good people and let them make you money. Just like you are making for someone else!

[Jimbo]

I agree with the other comments thus far.

1. Can you make 87k in the first year by yourself? I know your probably thinking you can because you are only working 15 hours a week now, but you must consider the new insurance, and additional overhead (gas, vehicle, equipment-wear + tear, getting hurt or ill, etc)

If you do plan on hiring help to make your goals I would recommend that you hire help while being part time to see if you can handle it (It is the biggist gripe I read on LS). You are turning work away so you can definetly use help even when part-time.

Dont let anyone turn you away from going full-time if it is your dream. Do you really want to do this Full-time?

I am in the same situation as you. I work full-time and Gross about 30K plus matching 401K, and Family Health Insurance. As for the business I will pull in about $33K by working about 8 hours per week with winters off. Should I go full-time with my business?
I will lose health coverage and the matching 401k. I will have to work in the elements all week vs one day per week.

There is alot to think about, and it depends on how much money you need to live. Personally i can live on my 30k full-time job, and the 30+K from the business is disposable income.

My advice is to try and run the business part-time, and hire an employee to see how much money you can generate that way. If your wife is already staying at home she could take phone calls during the day in order to help out. After a year if your making enough money and things are going well you can go Full-time yourself.
You have eased into it thus far and I think if you do things right you can ease the rest of the way into it. There is no need to jump right in and possibly make a decision which you cannot undo.

Tough decision. Let us know what you decide.
Jim

[scott's turf]

Money isn't everything but it sure is nice. Remember that 53k from your job is net income. Netting 53k from lawn care is going to mean grossing a significant larger amount. Being a solo operator that may be very difficult. Also from what I have heard FL has lower wages than around here so that 53k you are making is damn good. I am in a similar situation. I make 61k at my ft engineering job and do the lawn care on the side. For the last 2 months I reduced my hours of my FT job to 27 hrs/week and mow two long days. I will gross around 30k from the mowing but will only net around 15k. It is nice addition to my other income and is what greatly helped me in buying a 300k house at 24 years old. The tax right offs are nice and the security is nice but there are also benefits of working for someone else. Health insurance (a big one), retirement plan, paid time off, sick days, and when you leave work you are done. Once your business grows you will find that your hours spent doing things that aren't directly making you money will increase drastically such as maintaining equipment, billing, taxes, answering calls, returning calss, estimates. Just something else to think about. Talk to those guys that are netting over 60k and ask them how much they gross to get there. I think you may be surprised.

[lawnperfections]

I agree the extra money is great. My 210k house will be paid off next Chistmas. I haven't had a $$ worry in 3 years.

[jsr2741]

As for me I've been a cop for 10 years now and for the last 4 or 5 it's been all I can do to get myself up to go to work. Thats why I started my own biz(good therapy). My situation is if I dont get off the road in the next year, I'm going full time LCO. I've already started having stomach problems and its just not worth it to me.

However if you enjoy your job, work with good people and your boss is good to you and the others I couldn't imagine leaving. I'd keep the lawn biz part time, maybe add a few accounts if time permits and use that money for personal spending or if you've got kids, sock it away for their education.

Just my opinion though.

[lawnperfections]

I have a 9 month old that already has an Educational IRA that is on auto-deduct from my account. I also have about $1000 a month going into a 403b and ROTH's for my wife an I.

My schedule for my cutting days is pretty maxed out. My estimate jumps for next year because the entrance to my subdivision is expanding next year and so will the contract.

[SIG]

Hey Scott's turf,
I agree with alot of what your saying, but let me add something. Although you will no doubt have more time devoted to your business, it is just that YOUR BUSINESS. I always tell people I will have more freedom. Hum, freedom you say? What I mean is although you will be busting your rump 12-14 hours a day, you are also the one making all the decisions. Who you work with, how much you charge, how much you make etc. As far as insurrance and the other perks of a real job go, that is part of doing business. You have to plan for those expenses. That is why I always tell people not to compare "regular income" with business income, they are 2 totally different animals.

[scott's turf]

I totally agree with you SIG but realize that many lawn care business's don't worry about health insurance or retirement and that brings there cost down. To make it good and cover all those expenses you have to be a production machine. I love the independence of being my own boss but I love having my house even more. And I have both in the situation that I am in right now. My FT job pays for all the insurance and retirement and I still get to be my own boss with my business. I think most start ups see the $60/hr and they think that we are getting rich doing this. I don't think too many are.

[lasher66]

Man,
$37K a year for 15 hours a week. Thats pretty good. I live in Ohio so I dont have the benefit of working year round unless I start plowing snow. But I have 50 residential accounts and I only gross about 30K a year. But this summer was terrible drought so that dampered it a little. But I put in about 8 to 9 hours a day through the spring and also in the fall. So you must have some good paying accounts.
Anyways, I am in the same boat also. I have been working at UPS for 8 years part time in the morning and then I mow during the day. Within the next year I will have the opportunity to take a full time job at UPS which makes anywhere from 55k to 65K a year. I am starting to wonder if I should quit UPS and go full time lawn business. UPS is getting frustrating, the management sucks and it is to stressful. But UPS has a great pension, 401K, benefits(even thought my wifes benefits would cover me). Thats my story

Lasher

[The Lawn Choupique]

You could not put a gun to my head and make me do this full time. I don't have a job but I do have two additional business. I cut grass for the college fund for the kid and vacation monies and all the little extras.

[Nelson]

Lawnperfections,

Nice Logo...lol Plus you R from J-ville.......:D

I have a couple of accounts on Kernan Road +
on Monument & Merrill Road.......

Yes If possible send me some work.......

I can honestly say I am RELIABLE...

If anything...It's just nice 2 have someone in the same Biz
That lives in the same city...... That is on this Site.....

Let me know......

Thanks......

:cool:

[KenH]

Lawnperfections.... Right now you have the best of both worlds.

I am supplying insurance for Me, my wife, my 2 kids, and 1 employee and I pay 1300 per month. (I am 31) This is just health, not dental. It does not matter if you are in good health, your rates will be based on your age, and unfortunately you are over 30.

Dont forget about your retirement also. Being solo means you are on your own...no pension.

Also think what if competition suddenly shows up in a few years?? You may not see any around now, but that might change. With all the layoffs and bad economy, many people are finding different sources of income.

Dont forget, the grass is always greener....

[hlgmoney]

I am a full time firefighter (Captain) which brings me in around $40k yearly with excellent benefits. I am on course to do about $40k a year mowing and another $10k on installs. I'd really like to quit the fire dept and go full time but the benefits are what keeps me there - and I also love the job. Even if I were to quit, I'd still volunteer here where I live. Doing lawn care full time would be a lot of money though because there is so much work here. It's just a big step but those who take it are the ones that end up rich............or broke.

[Buzz_2004]

I myself do not own a Lawn Care Buisness but am VERY close friends with my Boss that owns LONE TREE LAWN CARE in LINTON IN, Lawn Mowing is a very successful buisness and can make lots of $. But there are many things you must look at. You may be able to make say $60,000 or more each year doing this. But if you are like us you like to put alot of that money back into your buisness and are constantly buying new equipment and so on and so on. This is all fine and gives you a very nice set up. But when it comes time for Winter unless you are very good at saving through the summer there is no income. Yes there is snow removal but you can't always depend on the snow. So if you think you can save enough money back in the summer and have plenty to live on through the winter then i would say Hell Yeah go for it. But if not i would want to have another part time job to carry me through the winter. And on the question about Insurance YES its very expensive to have to go out and just buy from an insurance agency if not with a buisness corporation.

Hope you can pull it off its a very fun and INTERESTING buisness to be in. lol You always have wonderful little surprises.

Good Luck! :blob1:

[Powerstride]

I am struggling with the same problem. I work in MI as a tax assessor right now, and due to the cyclical nature of my work load, I am cosidering dropping my salary from 70 to 45 ( with no bennies) to work 1 day a week from April to November. Then when the weather gets bad ( and my work load triples) I'll be full time at the city, essentially a contrcatual employee.

I will get health benifits through my wife and hopefully be able to pull this off next year. I just purchased a ton of equipment to replace my old used junky stuff and was able to pay cash for everything, even my new gravely ztr.

My point is this ...... I hate my full time job, but due to the $$$ it is darn near impossible not to go in every day. I started cutting part time to get out from behind this stinking desk, and love it.

Hating my job essentially caused me to be a big jerk, not get along with the wife as much and be a miserable person. Now that I'll enjoy my work, I'd take a 50% pay cut to do something I like. happiness to me is more valuable than $$$ :dizzy:

[SIG]

Powerstride,
AMEN BROTHER!!!!!!

[regnort]

Check into getting on with one of the Fire depts around, you'll get the benefits, alot of time off and have two cool jobs.

[lawnworker]

Lawn perfections, It sounds like you have the best of both worlds.I wish I was in your shoes. You show very good numbers per/hour to doller ratios. Much better then I can make where I live,and you have a good job. Since, markets over the years can change I would keep my job with the hospital, and if need be cut back on mowing or hire part time workers to take up the slack. In this area there was a time when few people were in this business and work was plentiful; now it is just insane everyone has a trailer and z riders. Of this, I am being truthful. Alot of people are doing just as you are, except, their not pulling in that much for their time. This is somthing to ponder.

congradulations on you sucess in both ventures.


Also, I think I read you have a family. I would want the most stress free way to go, which only you know what that is. Others have already posted about the added stress of expanding with shrinking returns on time invested. Sometime time becomes more important then money.


Alot can go wrong in business, like losing a big contract to a low baller, injury or whatever.

In my life I have not done as well as you ,It has been rough at time. I wish I had found a good job years ago. I think my mistake was working construction type jobs as opposed to proffesional work. Well thats enuff complaing. Good luck no matter what you do.

[lawnperfections]

Thanks for you comments. As always you have given me alot to think about