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Old 08-24-2013, 11:44 AM
hurryrainscomin hurryrainscomin is offline
LawnSite Member
Join Date: Aug 2011
Location: Worthington, OH
Posts: 10
Economics of Adding a Crew

Situation: Schedule is full and I've been turning away new business.
I am considering hiring for the first time, but the numbers tell me it's a good amount of hassle for not a huge benefit. Here are the numbers I have.

Gas 13%
Taxes-all 11%
Crew expense 52%
Owner % 7%
Insurance 3%
Equipment 14%

The current 59% that comes to me drops to 7% if I begin to hire.
I have a good amount of depreciation expense holding down my federal tax bill, but combined, I expect tax/equip to approximate the combined 25% going forward.

From what I see, if I add 2 people and add 40 residential accounts, I can only take $2 - $3 per invoice for myself, or $80-$120/week net increased personal benefit, much of which would be off-set by additional payroll paperwork and equipment maintenance.

Adding employees would let me quote more and larger mulching and fall clean-up jobs, so one question is, how much revenue beyond just new accounts have others found in their experience as they add workers?

What have others found as they went from solo to adding crew, both in net dollars, as well as your satisfaction of running a business?
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