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Old 02-18-2009, 10:11 PM
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qualitylandscaping qualitylandscaping is offline
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Join Date: Jan 2003
Location: Honeoye, New York
Posts: 1,595
Exactly!

Everybody needs to put all expenses into a spreadsheet, essentially creating a Schedule C. You can even you last years Schedule C, and make projects based on percentages you expect to grow for this season.

We put everything into a spreadsheet. Each piece of equipment is itemized by category and cost, then expensed out for the season. I divide total yearly costs for each piece of equipment by 1400hrs (average billable hours in our mowing season for 1 person). Add in costs for advertising, fuel, payroll, insurance, etc. Get a total per hour cost, then divide by total of employees. We add in for 10% unbudgeted expenses, and 20% profit. This is a short example of a very long spreadsheet, but I need to bring in $53.91460046 per laborer, per hour in billable work to clear a 20% profit. Accounting for the non-billable time puts that rate, up closer to $55-57 per hour.


1400hrs
Per Hour
0.223214286
0.357142857
0.157142857
7.142857143
2.857142857
6.071428571
3.571428571
13.57142857
10.71428571
0.714285714
0.5
25
1.428571429
6
1.071428571
2
81.38035714


Charge
Per Hour
$77.14
$27.14
$16.80
$3.57
$124.66

245.0663657
14
40.84439429

4.084439429
8.985766743


53.91460046




If you don't know your business costs, you might as well pack up and close your doors now. It's only a matter of time, before a well organized and highly efficient company assists you with your own demise.
__________________
Steve M. Krieger
President/ CEO
Quality Lawn & Landscape, Inc.
www.qualitylawncare.biz
Serving Western New York since 1998.


"Everyone has bad breaks but everyone also has opportunities. I think luck is the sense to recognize an opportunity and the ability to take advantage of it..." -Samuel Goldwyn
 
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