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View Full Version : Own your own or a job


Mustang
01-09-2004, 11:19 PM
This thread is an off shoot of the thread concerning company value. In that thread the notion was put forth that our companies' value may not be worth more than asset value. If our companies are not worth much more than asset value when it comes time to exit, why operate the company in the first place?

In my opinion the only reason is to operate a company of one's own is to enjoy superior financial rewards as compared to what one could earn in the job market. Why else go through all the headaches we go through? (And we go through some headaches, huh guys?!!!!) Why invest our money in an entity that will only return what we could earn in the job market? If that is the case, aren't we simply buying ourself a job? Jobs are free! Now, I can understand some may reply the satisfaction of being their own boss, surviving on one's own, etc. But if you think about it why go through the additional burden of owning a business if you are only going to make what you could at another job? And probably enjoy benefits like health insurance, retirement plan, etc. Factor in the monetary value of such perks and you need to make quite a bit of cash to justify owning your business financially.

I'll answer my own question here. For me it is the challenge. To see if I can do better. It is a pretty big risk, though. Hate to think I'll be eating cat food in my "Golden Years"!!!! :( :( :dizzy: :dizzy:

Kelly's Landscaping
01-10-2004, 12:13 AM
B]Why invest our money in an entity that will only return what we could earn in the job market?[/B]

Put like that there is no point but that said I object to the entire assumption thatís all we can make. This trade or any other for that matter is not limited to one set income or dream. Why do I own? Money jobs can only pay so much thatís why itís not the same as working for someone. If you want to make 40 k a year great make that if 60 k is your idea of success then thatís what you will make. Any more and you would give up in your heart, as you would question your motives. If thatís your thinking then work for someone else. I donít want 40-100 k a year I was 10-20 million a year. Am I making that nope but that wont stop me from going for it. From personal experience every 500 accounts is roughly 1 mill a year gross and so itís just a matter of numbers how much work do you need to do to get what you want.

You want another reason health. As we get older we will reach a point when our abilities diminish. I have 2 weak ankles and a shoulder that pops out if I do more then 7 hours of back packing in a day. Thatís at age 33 what happens at age 40 how bout 45. My last job paid 20 dollars an hour. So why leave simple when you are used up and cannot do the work you once could they will throw you away. Rather then accept that fate I said screw that I wont put my self in a position where getting fired at age 40 or older would cost me everything.

Avery
01-10-2004, 12:26 AM
I have several things in place for when I "exit" the industry. I am not one to put all my eggs in one basket. While I am here thought I plan on continual growth, being the biggest and best at what I do. I will do whatever it takes to accomplish that goal. Must be doing something right, I have doubled my gross for three years running now. Something that all the industry mags. say will ruin a business. :D

1stclasslawns
01-10-2004, 01:38 AM
My theory is this. You have 3 choices about what you will do with your life,
1) You can be a public servent... fire, police, EMS,
2) You can work for someone else, making and saving them money,
3) You can work for yourself making and saving yourself money.

It is your choice.


Jim

GarPA
01-10-2004, 06:01 AM
all very good points made above....I also do not agree that we can do as well with working for someone else. For example, if I were to hire you, assuming you have some commercial landscape experience, I might pay you $10-$12 an hour. But I bill you out at many times that. And guess who, after expenses, rakes in the money on YOUR WORK.....ME

Sure owning a biz is hard work and many many long hours... and has its hassles...but...as I;ve said many times here on other threads...this is YOUR business...nobody can take it from you, you can't be downsized, laid off etc. And, you can make as much or as little as you choose.

I spent many years in the corporate world....and the stress and uncertainty out there is far greater than any stress I have running this business. Even when it rains for 40 days and nites.

While we don't have allot of perks in this business, but we do have the most important one of all....a means to make a nice living for as long as we choose to do it. WE are in total control of our future...and for me, that's priceless

GrassBustersLawn
01-10-2004, 10:20 AM
AVERY - I must be a "slacker". Only increased gross by 40% per year for last 3 years. Thanks for the new sales goal for next year!

Mike

Avery
01-10-2004, 11:10 AM
Originally posted by GrassBustersLawn
AVERY - I must be a "slacker". Only increased gross by 40% per year for last 3 years. Thanks for the new sales goal for next year!

Mike

I would be more comfortable with 40%, believe me. I just got lucky....keep picking up large commercial accounts and install accounts for large builders every year. Build a good reputation and you don't have to sell anything....they will come to you. :D

Mustang
01-10-2004, 11:40 AM
Hey guys, I don't mean everyone in this industry will make less than what they could make in a job. Certainly, there will be a number of guys who make more; that is the whole idea in my opinion. I certainly expect to make more. That is the reason I got into this business. But I see tons of guys I know would be better off financially if they gave up the business and got a job. And every time I see or talk to them I wonder, why? And for that matter it isn't only the green industry in which such individuals choose to operate.

Also, remember I said this thread is an off-shoot of the thread about a company's value. Well, here we are saying a business in this industry can offer an opportunity for financial rewards above and beyond what one could make in a job. Well, isn't such an opportunity worth something then?

Don't mean to confuse anyone. This thread can go two ways; either along the lines of the first paragraph above or the second.

Thanks for the responses; keep them coming!:cool:

GarPA
01-10-2004, 01:02 PM
Paragraph 1...you'reright...I also meet people in this biz who have no business being in it...for many reasons...not the least of which is that they know have not a clue what running ANY business is about...let alone one that is as competative as this one. I'd bet some of these people dont really know their real numbers...and if they did, they might not stay in it. But we've all seen some of the trolls in this business...I know I for sure would not hire them the way they look and act....for any job....and so maybe thats why they tote that Craftsman around in the back of their Ranger.
Its the only means they have to buy that next case of Old Mil.
These guys would be far better off working at a warehouse where they would at least have some benefits that they could not afford to purchase thru their business

Kelly's Landscaping
01-10-2004, 01:25 PM
Well competition is something we all face and out of boredom I counted my competition in the new yellow book this past week. Kind of was surprised to count 240 other landscaping companies I figure let them worry about their incomes I'm gona be to busy expanding and pushing them around. I treat my business as a game and right now Iím hooked and as long as its fun for me or I have unachievable goals. Nothing is gona make me ease up. I have my sites locked on our 2 national giants that operate in my back yard.

proenterprises
01-10-2004, 06:45 PM
on your own is my vote. i would rather be my own boss any day of the week rather than having somone else breating down my neck. seems liek you have more potential, motivation and room to grow that way...plus your not going from paycheck to paycheck.