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View Full Version : How much profit did you make your first year?


sticklelm
12-18-2012, 10:15 PM
Im trying to get an idea of how much net profit you guys made your first season providing lawn and landscape maintenance. Before i began this business, i hadnt touched a push mower ever lol. Any of you got any numbers on what you profited?

caseysmowing
12-19-2012, 11:09 AM
Part time I grossed 23,000. Profit I'd say -17,000. I have not added up all my expenses yet. I'm guessing 40,000 counting equipment and fuel. I already had a truck. I'm guessing I'll have one more year before I have to pay any income tax unless I buy another truck. Everything is paid off except for my cheetah I have one more year on it then everything will be paid off. (2 years 0%) My goal for next year is to gross 35,000 which I think is very doable.

Darryl G
12-19-2012, 11:21 AM
I showed a loss for my first couple of years, on paper anyway, which I was actually happy about. I didn't take a dime out of my business the first year. I was building my business and didn't really need the income at the time.

There's always that choice you have to make between drawing money off of the business and reinvesting it. I think the reason a lot of start-ups fail is because they siphon too much money off rather than investing in the future of their business.

caseysmowing
12-19-2012, 11:53 AM
I showed a loss for my first couple of years, on paper anyway, which I was actually happy about. I didn't take a dime out of my business the first year. I was building my business and didn't really need the income at the time.

There's always that choice you have to make between drawing money off of the business and reinvesting it. I think the reason a lot of start-ups fail is because they siphon too much money off rather than investing in the future of their business.

That is what I'm doing right now. I don't need the money. I just want to have everything I need so when I go full time I won't need to buy anything really.

sticklelm
12-19-2012, 11:59 AM
yea netted in around 17-19k this year and i've put just about every dime back into the business as well with equipment. now that i've got the majority of my inventory covered, next year i'll put it more towards marketing the first half of the year and see if i can build on that. my biggest purchase was my 16ft enclosed i got from a factory in georgia and it was custom built inside and out very nicely for 5,300 and some change. im really hoping to triple my client base next year but i may have to accept bi weekly customers... although i'll market for weekly for the most part.

jrs.landscaping
12-19-2012, 12:06 PM
-5k the first year, -2.5k second year and year three I broke even :clapping:

ef200098
12-19-2012, 02:43 PM
-8k first year. net 10k second year, but was grossing 40- dumping alot back into the business.. 3rd year i was making a liveable salary. Steady growth every year after.

Darryl G
12-19-2012, 04:09 PM
OK, I'm at my other computer now, the one with my books on it. 2002 was Year 1 $3,500 net, year 2 $11,500 net, year 3 $23,000 net. That's just gross income minus expenses. As I recall, the first two years were a loss though as far as income tax goes...after depreciation and other adjustments. I was kind of bummed when I had to start paying taxes on my income in my third year, lol.

RSK Property Maintenance
12-20-2012, 01:40 PM
First year i profited -1,700, so it was loss, i put 17000 on the books and between buying a truck, and other expenses it was a loss, this year i had 45000 in expenses, but put alot more then that on the books so i ill have to pay in the spring time. Probably close to 30k in profit, and i invested alot back in to the business so next year there won't be much to buy.
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CNYScapes
12-21-2012, 11:38 AM
In the beginning I would spend as much as you can afford on advertising. Remember they cant call you if they dont know you exist.

To answer the original question, I didnt profit very much my first year because I was buying equipment and spending money on ads, flyers.

sticklelm
12-21-2012, 11:45 AM
in terms of making money after buying equipment and advertising... no. i didnt make anything. But i made enough money to buy 15-20k worth of equipment and marketing. all i used for advertising this year was craigslist and word of mouth! well besides the 3 or 4 who called from a flier i hadnt out. lol. next year im going to do a whole lot more in terms of marketing so hopefully i will grow 2-3x as big from where i am now client based.

H & M Yard Improvements
02-04-2013, 11:38 AM
First year? Profit? I didn't know that those 2 were mutually exclusive! Lol
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Davids Lawncare
02-04-2013, 05:23 PM
First year you probably will not profit any thing unless you have all your equipment already. 17k first year in profited around half. But thats because all my equipment was very used. This past year 78k profited around 40k. But Im still upgrading equipment:(

EquityGreen
02-04-2013, 06:52 PM
If you build your company right don't plan on making to much your first 5 years. Reinvest everything you can on nice equipment, marketing, and other promotions.
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sticklelm
02-04-2013, 06:55 PM
That's what I've been doing ever since 2 years before I started business.
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205mx
02-04-2013, 07:09 PM
After my mialage deduction, 13,000

if you don't know What youre ACTUALLY making, you're making a mistake.

Second year 41.

2013 projection goal is 75. Projection is 68k
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LandFakers
02-04-2013, 07:50 PM
First year $11,375
Second year $43,510
Third year hope to hit 65

205mx
02-04-2013, 07:53 PM
First year $11,375
Second year $43,510
Third year hope to hit 65

we are in very similar situations!

sticklelm
02-04-2013, 07:57 PM
My goal for 2013 is 100k in sales. Most of that being maintenance work.
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205mx
02-04-2013, 08:12 PM
My goal for 2013 is 100k in sales. Most of that being maintenance work.
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I believe the question was FIRST year
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newz7151
02-05-2013, 12:33 AM
Here's a question, because I know there is a CPA on the board somewhere.. but if you've got a company credit card that carries an ongoing balance of say $25K+ that you can never fully pay off without exhausting all capital (money in the bank) available to cover daily and monthly expenses such as utilities, rent, supplies, payroll, do you ever really have PROFIT to pay income taxes on or are you just continuing every month to month hoping that one day something will happen and you'll be able to put that first penny on the wall in the frame?

205mx
02-05-2013, 09:56 AM
I'm pretty sure those expenses are not deductible until you pay the bill for them.
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nylesedwards
02-05-2013, 01:07 PM
My first year I grossed $12,000 and made a net profit of $8,000. In my first year I just did grass cutting and did around 8 mulching jobs. I layed around 50 cubic yards. Plan on netting $20,000 this year
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LandFakers
02-05-2013, 02:48 PM
we are in very similar situations!
Not sure if we are doing good or bad, but we at least are making enough to live

britsteroni
02-06-2013, 10:33 AM
Here's a question, because I know there is a CPA on the board somewhere.. but if you've got a company credit card that carries an ongoing balance of say $25K+ that you can never fully pay off without exhausting all capital (money in the bank) available to cover daily and monthly expenses such as utilities, rent, supplies, payroll, do you ever really have PROFIT to pay income taxes on or are you just continuing every month to month hoping that one day something will happen and you'll be able to put that first penny on the wall in the frame?

Because you are a cash basis tax payer, I'm guessing you have deducted the the original $25,000 of expenses in the year they were purchased. You would only be able to deduct the interest paid on the credit card payments going forward if that is the case.

Example: Had $30,000 in gross receipts and $10,000 in regular expenses (paid in cash) in year 1. Also charged $25,000 in equipment, tools, handhelds, etc. ASSUMING you took bonus depreciation and 179 expense on the full $25,000, your first your loss would be ($5,000).

In Year 2 and going forward, all payments made on the credit card would not be deductible because you took the entire expense upfront in Year 1. Only the interest portion of the payments (assuming it wasn't 0%) would be deductible in Year 2 and beyond.

You should really strive to pay that balance down. It will be hard to keep much for yourself in a low margin business if you have large amounts of your cash flow going to interest payments.

Hope this helps...

PerfectEarth
02-06-2013, 10:48 AM
I'm really wondering how many of these answers are confusing a lot of things like net income (profit), owner salary, revenues, expenses, etc.... Like, "OH, I did 20k this year and I have 6 in the bank! I profited 6k!"

205mx
02-06-2013, 11:11 AM
I'm really wondering how many of these answers are confusing a lot of things like net income (profit), owner salary, revenues, expenses, etc.... Like, "OH, I did 20k this year and I have 6 in the bank! I profited 6k!"

In what capacity
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KG26
02-08-2013, 09:22 PM
Took a loss the first year bought new equipment cash so my expenses were high I don't mind I'd rather not have some bank in my pockets every month.

THORNTON SERVICES LLC
02-08-2013, 09:32 PM
First year was a loss , i would look for every write off posible , and invest back into your business as much as possible , will pay off in the future.