Originally Posted by I_am_a_beginner
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.