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View Full Version : I want to NET 12K a month??????


Five Diamond Lawns
10-18-2004, 09:58 AM
If your goal was to net 12K an month March through November how would you set-up your LCO.
What would be your gross need to be, type of accounts you would focus on, number of employees, etc.

economiclawncare
10-18-2004, 10:04 AM
What i would like to do is have a 3 man crew with me on it cutting about 40 8k-12k lawns a day 5 days a week at about $35 a yard ( that is the going rate here) charge the customers cc after each cut then that will put me at 28k a month and then cut for 7 months and pay my other 2 guys $10 an hour working get 40 hours a week ($800 a week) then have wife run office. If i keep it down to that level i dont have to have work comp in VA. Run a v6 ranger and trailer big enough to hold 2 36" and a 21" to keep fuel low. Then have $300,000 insurance for $60 a month. Then i should be making atleast 50%. What do you think.

Precision
10-18-2004, 10:14 AM
This is silly. How can I net $12k per month. Well you could start with $2million and bet the ponies. I'm sure you can at least make $12k that way, not counting the losses.

The best way to net $12k is to buy a business that is already doing it. Otherwise do like everyone else and start with some equipment and 1 customer and work up to whatever it takes to get to 12K net. Probably $28K gross. So figure just under $300k gross for the year.

wriken
10-18-2004, 10:29 AM
This is silly. How can I net $12k per month. Well you could start with $2million and bet the ponies. I'm sure you can at least make $12k that way, not counting the losses.

The best way to net $12k is to buy a business that is already doing it. Otherwise do like everyone else and start with some equipment and 1 customer and work up to whatever it takes to get to 12K net. Probably $28K gross. So figure just under $300k gross for the year.

Then there will be more taxes to figure in if a certain pres gets in. :)

Five Diamond Lawns
10-18-2004, 06:12 PM
Precision, I don't get how this is a silly question. If your not dealing in your net what are you concerned about???????

Lawnworks
10-18-2004, 06:59 PM
I think it would take at least 2 crews. Your expenses are such a big part of it, its hard to say. I mean if you are only netting 5k a month but food, gas, entertainment are all already expenses out then your not in too bad of shape.

Fantasy Lawns
10-18-2004, 07:05 PM
Well .... let's say you make 30% profit or "net" of every dollar

$500k would put you at $150K net or $12.5K per month

Than you can kinda get n idea of the "size" you would have to be or how many crews needed to generate that kinda gross in reference to your area n local economy

DennisF
10-18-2004, 08:07 PM
Let's say your net is 50% of revenue. That means you need to gross 25k per month or $6250 per week. Based on a 5 day week you need to gross $1250 per day. Using $30 per lawn as an average, you'll need to do 42 lawns a day to gross $1250.

Now...you need to figure out how many people and how much equipment will be needed to do those 42 lawns.

You'll also need 210 customers that are willing to pay $30 a pop for lawn care.

Kelly's Landscaping
10-18-2004, 09:35 PM
It does not all need to be lawns I am seeing 20-30k a month and only around 14k of that is lawn cuts fert is around 2k and the rest is what ever we can find. Lawn installs, planting work, mulch work, and my favorite brush removal. I move a lot of top soil I did around 500 yards this season which is a lot for shovels and wheel barrels but you do what you must till you get the better toys.

Next season we are going for 10 k a week in lawn cuts which is around 300 accounts. For us we will be running 3 lawn crews 1 will work 3 days a week and do fert and pesticide work for the first 2 days of the week. The second will cut for 5 days a week. And the 3rd will do 4 days a week and fill in work the rest of the time. We are picking up our 4th truck this month and we have plans of a 5th early next year.

What you need to ask yourself before you do what we do is do you want to deal with that kind of workload. Next spring you add in fert work and other jobs and we may be around 1500 jobs a month on a 4-week month thatís a lot of data entry and billing. Were talking over 100 dollars a month just in stamps. Itís taking my partner nearly 3 days a month just to do all the billing and thatís on just 600 jobs a months. So all I can say is it is achievable but be certain thatís what you want before you step into it. Obviously we want a lot more then 12 k a month net but to each their own good luck to you Diamond

poudre_lawn
10-18-2004, 09:42 PM
Run a v6 ranger and trailer big enough to hold 2 36" and a 21" to keep fuel low.

How big of a trailer would that be ?

parkwest
10-18-2004, 09:44 PM
Talk to your CPA.

Most of the lawn monkey's on here couldn't tell you the difference between a balance sheet and an income statement.

GrassBustersLawn
10-18-2004, 10:00 PM
I think if you are planning on 50% net you will be sadly mistaken/disappointed!

Mike

Kelly's Landscaping
10-18-2004, 10:06 PM
I think I lost all respect for my so-called CPA when we brought in last years numbers and he said wow those deductions look real!?!?! I don't know a whole lot about tax codes and I can assure you my accountants do not know crap about running a real business I would not recommend you get your advice on growing your company from a CPA. On to the next comment I don't know about you but the name lawn monkey is not one I take as a term of endearment.

Flex-Deck
10-18-2004, 10:15 PM
IMO - with 2 36's and a 21 - 2 crew members, a truck and a trailer, good luck at being able to mow enough square ft. per month to even gross 12K.

Now if you were able to gaggle all the yards up and down on street for say one mile so you could unload at one end - mow up one side AM and down the other PM, reload and go home, you would have a chance.

I think most on this site find that it is the windshield time that causes the problem - or management headaches as to getting as much done as the mowers are capable of doing.

Respect your wishes to make 12K per month, but I do not feel you have much of a chance with the mower trailer setup you want to put on the playing field.

Thanks Brad

Lawn-Scapes
10-19-2004, 12:57 AM
Talk to your CPA.

Most of the lawn monkey's on here couldn't tell you the difference between a balance sheet and an income statement.

Are we in a bad mood today parkwest? :)

Anyway...... I believe you would need around 4 - 5 employees (2 crews) and they would need to bring in $300,000+. You should target larger full service accounts.

rodfather
10-19-2004, 07:55 AM
Talk to your CPA.

Most of the lawn monkey's on here couldn't tell you the difference between a balance sheet and an income statement.

Actually I do enough to know I only have to look at them from time to time. My P & L is what get's my attention on a regular basis. Lawn monkey huh...

Five Diamond Lawns
10-19-2004, 10:03 AM
Idea account make up?
Percentage of:
Residential
Commercial
Associations

Five Diamond Lawns
10-20-2004, 10:03 AM
Also, I make far more money per man hour on project work like thatching, aerating,topdressing etc.
How much of the company would you allocate to project work or would you strickly do maintenance and have project work as gravey

parkwest
10-20-2004, 11:54 AM
Actually I do enough to know I only have to look at them from time to time. My P & L is what get's my attention on a regular basis. Lawn monkey huh...

For start-ups, they should be looking at their income (or P&L, lol) statement every week. Once you get going, it is a good idea to look at least monthly so you can nip any problems in the bud before it gets out of hand. You know where you compare actuals to budgets... that kind of stuff.

Question: How many (lawn monkeys, lol) on here do job costing?

Precision
10-20-2004, 04:19 PM
5 diamond,

my comment has nothing to do with net. My comment has to do with the question itself. What do I need to do to net $12K? I would venture to say start a successful business, then grow it for a few years. Have good management, retain some employees, satisfy the customers, reinvest in the company. You know the basics.

What % resi vs commercial, what equipment do I need, Should I focus on landscape installs? That is not something that any of us can help you with. Take the clients you get. See what happens, see where you are making money. Justmowit has no commercial accounts so far as I can see. And he does a bit better than $12K monthly. Others only do commercial and do great as well.

I have commercials that pay great, I have resi's that pay great. I have both that I make a couple of $$$ on and that is it. It has to do with proper bidding, and getting a name where people will accept your bid even if it is higher than the other guy.

No short cuts.