Big Money
09-30-2011, 11:39 PM
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I am in the process of researching what would be needed to start a part time lawn-care business and is my approach on the right path?
Personal Info
I live very close to Hershey PA with my wife and three daughters ranging in age from 13 to 18 years old, with my oldest in her first year of college.
I've worked for my employer, (Large company) for over 25 years and have a very good job with perks (company car, expense acct, home office...) that also allows me some flexibility in my weekly schedule. I make a very good living (should gross close to a 100k this year) but lately, the stress of the job and working someone else is starting to wear on me. I know I am very lucky to have such a great job and I do appreciate it, and I'm not looking to leave it anytime soon. This would be the reason the business would be part time.
Start up Plan
I currently have start up capital of around 10k. With this I would purchase a used truck for no more than $2500 and a trailer for no more than $1500. (They are out there, I've been researching them) I would then purchase a used 48" to 52"zero turn, small push mower, good trimmer and good blower for $4000. I would use approximately $500 - $1000 for additional start up costs (phone, storage, advertisement) and bank the rest (Approximately $1000) for unforeseen expenses.
Business Goals
1) Secure 12-14 residential customers and 0-2 small commercial customers. Starting out, I do not want anymore than 14 customers per week. I would hope to cut between 4-6 on two week days/evenings and finish the rest on weekend.
2) Target specific areas of town with flyer handout. Estimating between 200-300 flyers required for a 2-3% call back (between 60-90) hopefully landing the preferred 14 customers
3) Get top dollar customers. Currently large landscaping companies are charging a minimum of $38.00 per yard, my goal would be minimum of $40.00 for that same yard. I know this can be tough with the economy the way it is, and being new with no name recognition in the business, but I truly believe that if Im only looking for that small amount of customers, I should be able to pick and choose my customers.
4)Grow 20%-40% (3-6 customers) per year and add help as needed.
5) Develop relationship and customer loyalty by providing 100% customer satisfaction.
6) Take portion of profit for new equipment and repaying initial investment. I full expect not to make much money if any the first and second year of operations.
7) Determine if this is a business that can be grown into something in 5-8 years and if this is for me.
I know this is not an easy profession and being 48 I am getting into it late in the game. However, if this is something that can grow, I would hope to be off the mower by 55 and managing the business while growing it.
If it is determine after the first year that this is not for me, I would sell my equipment for what I could and any loss chalk up to a life experience. I have no problem losing all of my investment if that should happen. I've put this money aside for the opportunity to try something different.
I apologize for the long message, but as you can tell I've put a lot of thought into this and will continue to as I don't expect to start the business until next spring. (Will be looking to purchase my equipment through the winter)
My question is, am I missing anything in my game plan. Is it just a pipe dream and I have no idea what I'm getting myself into? This is not something I just picked randomly. In my early 20's I worked for a landscaping business and enjoyed the work.
Am I on target for the equipment I am looking to purchase for the services I plan to offer. (Mowing, trimming, blowing, light clean up)
Again, trust me I do get it, I know I am extremely lucky to have such a good job as I do, and I do not see myself going anywhere for quite awhile.
However, with my oldest in college and another one on her way in two years, any additional income is welcomed.
I look forward to reading your expert advice!
I am in the process of researching what would be needed to start a part time lawn-care business and is my approach on the right path?
Personal Info
I live very close to Hershey PA with my wife and three daughters ranging in age from 13 to 18 years old, with my oldest in her first year of college.
I've worked for my employer, (Large company) for over 25 years and have a very good job with perks (company car, expense acct, home office...) that also allows me some flexibility in my weekly schedule. I make a very good living (should gross close to a 100k this year) but lately, the stress of the job and working someone else is starting to wear on me. I know I am very lucky to have such a great job and I do appreciate it, and I'm not looking to leave it anytime soon. This would be the reason the business would be part time.
Start up Plan
I currently have start up capital of around 10k. With this I would purchase a used truck for no more than $2500 and a trailer for no more than $1500. (They are out there, I've been researching them) I would then purchase a used 48" to 52"zero turn, small push mower, good trimmer and good blower for $4000. I would use approximately $500 - $1000 for additional start up costs (phone, storage, advertisement) and bank the rest (Approximately $1000) for unforeseen expenses.
Business Goals
1) Secure 12-14 residential customers and 0-2 small commercial customers. Starting out, I do not want anymore than 14 customers per week. I would hope to cut between 4-6 on two week days/evenings and finish the rest on weekend.
2) Target specific areas of town with flyer handout. Estimating between 200-300 flyers required for a 2-3% call back (between 60-90) hopefully landing the preferred 14 customers
3) Get top dollar customers. Currently large landscaping companies are charging a minimum of $38.00 per yard, my goal would be minimum of $40.00 for that same yard. I know this can be tough with the economy the way it is, and being new with no name recognition in the business, but I truly believe that if Im only looking for that small amount of customers, I should be able to pick and choose my customers.
4)Grow 20%-40% (3-6 customers) per year and add help as needed.
5) Develop relationship and customer loyalty by providing 100% customer satisfaction.
6) Take portion of profit for new equipment and repaying initial investment. I full expect not to make much money if any the first and second year of operations.
7) Determine if this is a business that can be grown into something in 5-8 years and if this is for me.
I know this is not an easy profession and being 48 I am getting into it late in the game. However, if this is something that can grow, I would hope to be off the mower by 55 and managing the business while growing it.
If it is determine after the first year that this is not for me, I would sell my equipment for what I could and any loss chalk up to a life experience. I have no problem losing all of my investment if that should happen. I've put this money aside for the opportunity to try something different.
I apologize for the long message, but as you can tell I've put a lot of thought into this and will continue to as I don't expect to start the business until next spring. (Will be looking to purchase my equipment through the winter)
My question is, am I missing anything in my game plan. Is it just a pipe dream and I have no idea what I'm getting myself into? This is not something I just picked randomly. In my early 20's I worked for a landscaping business and enjoyed the work.
Am I on target for the equipment I am looking to purchase for the services I plan to offer. (Mowing, trimming, blowing, light clean up)
Again, trust me I do get it, I know I am extremely lucky to have such a good job as I do, and I do not see myself going anywhere for quite awhile.
However, with my oldest in college and another one on her way in two years, any additional income is welcomed.
I look forward to reading your expert advice!