Originally Posted by Envy Lawn Service
And another thing.... (and I swear I'm not picking on you)
But take this statement for example:
Now, just for example, if you have figured out you can't make money at $35 per man hour solo.... what on God's green earth makes people think they can all the sudden make money if the hire employees to duplicate themselves in the field at the same man hour rate?
Really.... what makes people think they can take the product of a failing formula, multiply it and come out better somehow?
Because if you're solo and use that rate you'll only probably only generate 50k a year. Profit from that will only be about 35k a year, not very good.
However, if you add another guy in the truck and keep them scheduled the revenue generated for that truck should jump to 100k. With the wages you'll have to pay of about 47k for the two employees that leaves 53k for profit, expenses and other outlays. If you had one truck with employees you'd probably only make about 15-18k. If you add more trucks, say 4 more for a total of 5, and each truck adds to the contribution margin of advertising, insurance, office space etc the profit per truck will go up slightly.
Should be 20k per truck x 5 trucks is about 100k. That's if you can keep them scheduled. But here is the problem and this is why many just go solo: I guarantee you will work more hours for this 100k being a manager than profiting 100k being solo with a helper. If you can't keep them scheduled for almost all of the year then profit will go down to probably 70k mark, which is more reasonable. Well, 70k profit being solo is very doable with proper advertising, equipment and a decent growing season and you'll work less hours than being a manager making the same money.
But the problem is when you sell the company the guy who has 5 trucks will get far more from his business than a solo guy will. So there's tradeoffs.