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NelsonLandworks
03-11-2005, 05:07 PM
My sister (partner) and I had a meeting about what our second year goals are.

This comming year will be the second full year that we have been working. Last year was an experimental year basicly. while we took it serious we spend a lot of time getting things right, taking the time to learn it and get things down so that this year we can go out in full force with an idea of whats going on.

Of course we'll still be figuring things out, thats all part of it. But we will have a good idea of what to do, and we'll have a year to compair too.

When we talked about our total sales for this year she was sure we would make $5,000 more then last year, but no more then that. I was thinking 10-12,000 more. Do you think I'm being too unrealistic?

I came up with this number because we will know how long things will and won't take us, we won't be "winging" much and will be more focused.

Do you guys think I'm setting too high of a goal? Thanks
Wes

twins_lawn_care
03-11-2005, 05:17 PM
it might be easier to think in terms of percentage increase.
or, let us know how much you guys made last year.

$5,000 is not much of an increase for a company grossing say $500,000

but is a huge difference to a company that made $3,000 last year

pjslawncare/landscap
03-11-2005, 05:18 PM
Cant tell u from your post, need more info here. How many accounts did you have last year? what equipment did u have last year? How much and what kind this year. What type of accounts have u been doing and what type will u likely do this season? Adding any new services? Your region plays a major role in success (compitition).
Tell us more about u

bobbygedd
03-11-2005, 05:41 PM
2nd year goal w/sister as partner= 1)remain on speaking terms. 2) don't starve

CuttingCrew
03-11-2005, 05:43 PM
Now thats good advice Bobby!!!

NelsonLandworks
03-11-2005, 05:44 PM
last year we made just shy of 30,000 in sales. We did all residential work. Mostly maintenance (mowing, weeding, pruning, mulching ect). We baught a new snapper 44" ztr, a few weed wackers, and a bunch of hand tools. EDIT, just thought of more stuff, we baught 2 back pacl blowers our first few months as a busniess in 03', and this fall we baught a leaf vac. for the truck

this comming year we plan on taking on two commercial accounts, we have a few more residential accounts lined up, and who knows how many more will call in the spring.

My sister wants to go in the direction of garden restoration and small landscape contruction, while I want to go in the lawn maintenace direction, so we'll end up having our own crews down the line.

For competition we have one other lawn maintenance company in town. He's been here for just shy of 15 years, has lots of accounts but is loosing them to us because of his drinking.

there are two landscape contruction companies in town, but I don't know how much work they actuall do in town.

NelsonLandworks
03-11-2005, 05:46 PM
2nd year goal w/sister as partner= 1)remain on speaking terms. 2) don't starve

lol, things aren't like that with my sister and I, oddly enough. We get along fine, and disagree on things like any partners, but we work it out and move on.

PTP
03-11-2005, 05:47 PM
Since I don't know what you grossed last year, this is kind of a shot in the dark.

I would think that with two people you could easily gross 20k part time. Using that as a base, I think that it is very reasonable to be able to double that. Of course, there are a whole bunch of factors that I don't know about

pjslawncare/landscap
03-11-2005, 05:51 PM
last year we made just shy of 30,000 in sales. We did all residential work. Mostly maintenance (mowing, weeding, pruning, mulching ect). We baught a new snapper 44" ztr, a few weed wackers, and a bunch of hand tools.

this comming year we plan on taking on two commercial accounts, we have a few more residential accounts lined up, and who knows how many more will call in the spring.

My sister wants to go in the direction of garden restoration and small landscape contruction, while I want to go in the lawn maintenace direction, so we'll end up having our own crews down the line.

For competition we have one other lawn maintenance company in town. He's been here for just shy of 15 years, has lots of accounts but is loosing them to us because of his drinking.

there are two landscape contruction companies in town, but I don't know how much work they actuall do in town.

Well you should easily make much higher than 5k more than last year if you got it down. Many co double their first year revenues

promower
03-11-2005, 05:55 PM
I agree with pjslawncare. I think 100-150% increase would be a good goal for this.

walker-talker
03-11-2005, 05:55 PM
Grossing 10K-12K more should not be that hard...unless you live at the north pole. As a quick reference, I figure each weekly client will being in $1K for the season.....so that's 10-12 new mowing clients. Not sure what you have planned to gain that.

Give us an idea what you have planned so that we might be more of help to you.

Matt

NelsonLandworks
03-11-2005, 09:48 PM
Grossing 10K-12K more should not be that hard...unless you live at the north pole. As a quick reference, I figure each weekly client will being in $1K for the season.....so that's 10-12 new mowing clients. Not sure what you have planned to gain that.

Give us an idea what you have planned so that we might be more of help to you.

Matt

I see how you came up with that figure, but we don't do just mowing. In fact, we have a few clients where we go to thier house for an entire day and work for 40-50 an hour with a truck and some hand tools, it's mostly all profit.

But then there's wash out days where it's raining too hard to do anything that'll make money.

We had plans to pick up a used 3500 4x4 dump, but we figure we'd rather go for our 2nd year in busniess being more organised and not pushing so hard to make payments that we lose our heads.

I honestly think we'll be able to pull 10-12 grand more with ease, if not more. We are planning on taking on a lot more mowing jobs, and schedualing a few landscape/garden restoration jobs a month.

However, we may be picking up an employee in the spring if we get too crazy with cleanups. We were boarder line last year because we got to many calls every week-it was great! I can only hope for another great spring.

Thanks for the info guys, keep it comming I really appreciate reading what you have to say.

Wes

Darryl G
03-11-2005, 10:53 PM
Increasing your numbers substantially from your first year should be fairly easy. We're entering our fourth year and things are still going up pretty steeply.

Here's what we managed to do last year (year 3) over year 2....I'm not going to give dollar figures, just some key percentages, rounded to the nearest 1/2.

Gross Sales up 46%
Advertising down 38%
Gas for vehicles up 11%
Office supplies down 45%
Postage up 75%
Telephone up 81.5%

Total expense up 6.5%
Net profit up 95.5%

If you're not working at full capacity now due to lack of accounts, your overhead is high relative to your income. As your work load goes up and you get closer to your capacity, some expenses will go up, but the overall affect can be to drastically increase your profit.

Hope this helps.

Mr.Fabulous
03-12-2005, 12:08 AM
[QUOTE=There Is never to much money nothing is to unrealistic you could make a 10 times more than that a year if you want to.
I made 50,000 my first year and my second year i"m on now i will make 120,000 gross

Mr.Fabulous
03-12-2005, 12:11 AM
[QUOTE=Mr.Fabulous][QUOTE=There Is never to much money nothing is to unrealistic you could make a 10 times more than that a year if you want to.
I made 50,000 my first year and my second year i"m on now i will make 120,000 gross