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Old 01-27-2014, 08:23 PM
TMlawncare TMlawncare is offline
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Join Date: Feb 2002
Location: nw missouri
Posts: 1,169
Quote:
Originally Posted by I_am_a_beginner View Post
Here in north, we have 25 weeks of mowing. He said he had 7k of gas and the rest as labor cost and equipment maintenance which seems realistic if i compare ratio to mine. I didnt't compare all the numbers yet and i cant confirme those but they seems true.

All the contracts are lawn cleaning and mowing. He had those clients for 6 years. He would tell his current client he is selling to us. We could keep his business name. He is selling because he has a construction business and he wants to put 100% of his time in that ($$$).
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You said that you also run a profit margin of over 60%. What I learned when I was just starting out was there was a lot of expenses I did not keep track of. I lost some receipts. There was a lot of stuff I did not know I could deduct. My profit margin looked great. My tax bill was horrible and my bank account was nearly empty. Over the years I paid a lot of attention to my tax man and not my profit margin truly reflects my earnings.

Btw, he said he paid 7k in gas on 120+k of revenue. Most on here if you look it up average between 10-12% of gross. That would be closer to $12k on fuel. What about liability insurance ($1200), workmans comp ($3000), commercial vehicle insurance ($1000/vehicle min), unemployment insurance ($2000), shop/equipment insurance ($500), payroll taxes ($2000), personal property tax on equipment ($xxx?). What about tax fees, licensing, supplies, dot bs, etc. Did he purchase any new equipment, trucks or trailers? I could go on and on. Crap I spent $600 this past year alone on postage. Like I mentioned, there is a lot that can be overlooked.

If he really did 60+%, I want those 30 accounts.
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