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Old 12-17-2012, 02:08 PM
smallstripesnc smallstripesnc is offline
LawnSite Senior Member
 
Join Date: Oct 2011
Location: Charlotte, NC
Posts: 674
Solo vs employee's

Hello everyone,

While I have some down time I have a question to ask all of you that may have been down this route.

I started my business solo and have been doing great. This fall I hired a close friend to help me with leaf removals. Without help during leaf season it would of been very difficult with my current set up since I have to lift my leaf vacuum off the tailgate and unloading the leaf box on the back of my truck would of been a real pain.

For the upcoming mowing season he plans to work with me but after doing the math I won't really be making more with the help. If anything I'll see a loss in income for myself.

Here's the breakdown.

SOLO:
10 yards a day at $25 per lawn: $250
Per week: $1250
Per month: $5000
Expenses: $500 per month
So I pocket $4500 before taxes

WITH ONE EMPLOYEE:
I expect I can do 14 per day at $25 per lawn: $350
Per week: $1750
Per month: $7000
Expenses: $800 (with 2 36in mowers going and more driving)
Employee pay at $12hr 40 hrs a week: $1920 mo
Pocket $ $4280 before taxes

I know the difference isn't that much but I shouldn't be taking a loss when I hire someone. I figure I really can't do more than 14 a day with help. Maybe I can do more than 14 a day with help but I'm really not sure since I know I can do actually 11 a day solo. Now with the expenses of hiring help (legal wise) and knowing I'll be losing cash actually and taking on more lawns and wear and tear on my equipment is it worth it? I DO want to expand my business and hiring help is the only way to expand but I want repeat business every season because I do a very good job not go so fast and have employees mess up so they hire someone new every year like a lot of people do.

Any advice on my situtation?
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