Originally Posted by Darryl G
One other thing. I do way better than 50%. In 2011 my net was 76% of my gross income. That's before federal and state income tax.
Gross sales revenue or gross personal draw? Those numbers are unrealistic for anyone with payroll or doing installations. On the other hand it is entirely possible to achieve similar results being lean and solo with a fair dose of luck. A hard working full time operator could sell 100K in labor each season. Most can not get this number because of inefficiencies, but it is possible. Now if you are super lean and tight and make the right moves you could see a gross draw in the upper 70's solo, netting around 55K.
This is part of the issue talking numbers. A company pulling 10 mil in commercial mowing is doing way more labor hours than a company selling 10 mil in hardscapes with a large material expense. One guy could sell 200K solo but if it is all installation work than it may mean that you personally made more mowing 100K.
Rscapes - Do not think I am trying to deter you, but I am trying to help you see things in a realistic view. You mentioned you will already have the equipment. Have you accounted that your tractor may last 20 years at your property, but you will achieve the wear of those 20 years in one season commercially? Or that you may have a roll of trimmer string 5 years at your house but will burn 3 a season commercially. It generally is not the large items that take out new businesses, it is the constant influx of nickle and dime expenses that wears the new guys down. This in combination with mis management of funds. General rule is that it takes 3 years to build a foundation and become profitable. From there a properly run organization sort of enters cruise control and becomes it's own monster.