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View Full Version : avg. yearly income....rookie


S.B.N.
03-30-2003, 07:36 PM
ive been in the home building business for 7.5 years..we sub alot of the work out except the site work and final rake.we hire a local landscaper to plant new shrub and mulch plus hydroseed. I want to start my own property maint./landscape comp.looking for advice from A-Z P.S. I have alot of good contacts and have a good reputation w/all the subs

LawnLad
03-31-2003, 05:14 PM
Industry wide % would be along these lines:

100% administrator (over head) - no more than 10% of sales.

Working foreman/laborer - $10 to $20 an hour - based on what you can sell your jobs for and how efficient you are in producing them.

So - if you're working 2,000 hrs a year billable (all additional paperwork and non-billable work is sweat equity starting out), and you pay yourself $15.00 an hour that would be $30,000 a year gross. But - how much revenue can you generate? I would think at this rate you'd better be over $80 K a year or $40.00 per hour if you want to grow your business. Keep your direct labor (what you pay your foreman/laborer, yourself and/or others) under 35% of sales, preferably 30% and you'll be off to the right start.

Avoid this scenario: If you generate $60 K in sales on 2,000 hrs of work you'll be at 50% direct labor and struggling to buy new equipment and generate the working capital to hire employees and take on larger jobs requiring larger cash flow.

S.B.N.
03-31-2003, 07:21 PM
Thank you for your response.It sound like you know what your doing. If you think of anything else feel free to educate me.

KevlarLawnCare
04-09-2003, 11:07 PM
Thx...

LawnLad