Realistic profit for first year?

[Birddog Lawncare]

This will be my first year in the business. I will be a one man operation. I have a 36" walk behind, a stihl blower and trimmer. I have a FT job right now that pays well, I just want some extra income on the side. I'm only looking to have 5-10 accounts this year. (All residentail ranging from $25-$50.) What are realistic profits for a first timer? Any advice would be appreciated.

[WeatherMan]

We need more Info of what kind of work your doing IE: mulch, trimming, landscaping so on and so on. but first thing you need to do is get a buss. lic. and Ins.

[Birddog Lawncare]

How much does basic insurance run? Where the best place to get it at? WHat's involved in applying for a business license?

[CNE]

You will probably not make any profit the first year due to equipment purchases. Especially part time. I spent $13,000 last year and didn't start my business until June as a part time business while my wife is in school. I work 40 hours a week at another job. I mow every chance I get. I can tell you from experience, it is hard to juggle lawn care around another job because you have to plan your yards for a specific day and if it rains, well you're screwed tying to catch up. I have enough business to pay all expenses and put a little back but not much more. I guess that's about all I can ask for for now is for it to pay for itself. As soon as my wife graduates, I go full time. Good Luck.

[alpine692003]

How do you guys spend that much on equipment?

I bought what I could use... So far it's 4k including advertising and what not.

[twins_lawn_care]

last year was my first year, and I was very happy to say I broke even.
Unfortunately, in the last few weeks of the year, also totaled our van, but that's another post.
anyways, my plan was to try and break even the first year, with all the purchases, and then in the second year, turn a profit.
So far, a couple setbacks, but still fighting to be on target.
staying pretty small for now, but plan to go full time in 4-5 years.

[bibs in pa]

guys like you we call scam scapers. You guys always try to low ball us real lawn and landscapers.

[twins_lawn_care]

riiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiight.

[promower]

bibs in pa

Whos talking about lowballing?

[montaguejh]

When you guys talk about breaking even are you referring to paying for your equipment or paying for equipment plus living expenses (i.e. house, food, etc.)?

[CNE]

I'm not lowballing anyone. If the other guys can charge what they charge, I figure I can charge just as much for a quality job. I'm not undercutting anyone around here, just offering similar services at similar prices. Breaking even in my eyes is paying for my equipment, gasoil, etc. I don't rely on my business for my main bills.

[TGG]

I have been cutting grass for the past 3 years and its pretty easy to turn profit when its just yourself. This will be my first year with an employee so we will see how that goes. But with a bit of simple math you should be able to calculate what your expenses will be and what your revenue will be. Just minus your expenses from revenue and if the number is positve you have profit. By the way this site is great. I just found it a couple days ago and have been very impressed.

[tiedeman]

Realistic profit for my first year was negative $3,000+

Your first to second year you will not make very much if any at all. But it all comes down to management. If you can manage production, expenses, income, and time you will make money. Don't be afraid of being very hard and crack down on things.

[juststarting023]

broke dead even 1st year . was up 3000 this past year Including my salary $25,000 expect to make 35,000 this year watch your your spending very close and only buy what you need not what you want!!!!!!

[Soupy]

It's hard to say. I would recomend you buy what little equipment you can get by on. And spend a couple grand on advertising. this should pull a profit in for you.

with 4 grand invested, you will need about 480 $25 cuts to just come ina hair over even. This is of cource a guess that you will need to pull12 grand by the end of the year to break even. I didn't put much thought into this, just took 4 grand times 3.

I'm not sue if I did that right. I'm basing my #'s on a 75% operating cost. I have been drinking tonight (i'm getting married tomorrow and my nerves are shot). So I might be a little off.

[GarPA]

Depends on how you define profit. Profit is NOT what goes into your pocket after you pay the expenses. Profit is what is left after expenses including taxes, AND after you pay yourself AND pay the BUSINESS...call it depreciation, or call it the money you put aside because everytime you turn on a machine, it is wearing out and will need replaced someday...granted, if part itme, it will last a long time ...but...I think you need to get a book on small business accounting as that will explain better than I can what proift is, and isn't . You might as well do your accounting the right way before you get into the business for real. Part time is playing in the business....fulltime is serious business