Give him fair market value for the equipment and get started. What alot of people fail to realize is the cost of advertising. You can grow the business from here. With an employee and that small of # of accounts that net of 400-500 per week is probably about right or even a little high, that is about 30% of 1600.00 (40 small accounts? x 40.00 = 1600.00). If they are small accounts also consider not even hiring an employee until you get this rolling and add more customers. That will certainly increase your bottom line.
A Exmark,New Holland and Red Max equipment user!!