Originally Posted by danillac
I did avoid this question. My current job wants me to move 3 hrs away. I currently work as shipping manager, making decent money $20/hr, yr round, and install docks in spring after work and on weekend and remove in fall on weekends only. Dock install is on largest lake in twin city area, lots of money on lake. Pull in extra $15,000/yr after paying buddies $30/hr to help, to work weekends and after day job every night til dark in spring time and weekends only in fall. Hoping I would have more time to install docks and get more accounts with lawn care biz, as moving 3 hrs away would make dock install a serious pain in ass but still possibly doable. Maybe have dock custies as future lawn care clients.
I do need the equipment and would take out a $40,000 loan initially to get some extra cash and not dip into savings. Lawn care accounts are 45 minutes away from lake, other side of town, so thinking I would need a full days work on lake (8-12 resi accounts) to make it worth mowing around lake.
Lawn care's main employee ($17/hr)would hopefully stay with to help out transition.
I would say some of his equipment you should be able to sell of as it is over kill for $100k in sales. When I was at $100k one 61" ztr, one 48"w/b, and a 21" mower. Just saying his equipment list is overkill or the work isn't priced right.
Buying the equipment isn't bad if its priced right. Buying accounts without knowing foresure they are following is hard. Hence why paying a % of gross sales makes sense. The one months of sales for buying seems like a decent guide but doesn't always work either if there is no net.
If your paying people to do the work 20% of gross is a decent number to keep. Some more some get less. So off of $100k you should net over $20k. If you do the work yourself you can save the labor (basically make a job for you). Would those numbers work for your lifestyle after making the $40k loan paymnet? Seems like it would be tight budgeting personally and biz wise. No kids/wife, just rent can it work, sure.
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