Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #1  
Old 01-04-2007, 01:26 AM
Willofalltrades's Avatar
Willofalltrades Willofalltrades is offline
LawnSite Bronze Member
 
Join Date: Dec 2005
Location: Northeast Ohio
Posts: 1,000
True cost to own my LCO...

I had some thinking time on my hands so I figured I would come up with what would be my EXPENSES if I go the route I want to this spring. Here are the following: (monthly costs)
Truck true cost to own/work:
Monthly payment: $700 (new F350)
Fuel: $770 monthly (2 fill ups a week with diesel, 35 gal. tank, $2.75 a gal, 4 weeks in a month)
Oil change: 100? (I don't know I haven't owned a diesel truck yet)
Wear and tear: $230 (yearly or maintenance issues: tires-$1200, Air filter- $50, Brakes-$500, Front end- $1000 all divided by 12 to equal monthly fee)
Liscenceing: I donno
Total: $1800 a month (This is worst case, but feasable?)

Commercial mower true cost to own/work: Mowing 3 days a week
Walker MTLGHS, 26hp EFI- $400 (payment)
Fuel: $150
Blades sharpened: $60 (change blades daily, 3 sets of blades, $2.50 a blade to be sharpened, 2 blades on Walker GHS deck)
Oil change: $20
Grease: $10
Wear and tear:$105 ($2500 divided by 24 months)

Wright Stander payment: $215
Fuel: $240 (8 Gal. a day, $2.50 a gal., 3 days a week, 4 weeks a month)
Blades sharpened: $90 (same formula used with the Walker only with 3 blades instead of 2 on the deck)
Oil Change: $20
Grease: $5
Wear and Tear: $65 ($1500/24 months)

Trailer12x6 utility, single axle)
Wear and tear: $65 ($1500/24 months)

I haven't had time to figure the rest, I thought I would give you a head start on what I have. This set up is for small-med residentials. I want to think of every cost that piece of machinery may require with in the next 2 years and spread it out over 24 months so that when the time comes to replace a Pump, tie rod, engine, or tires I am not shocked and I have the $ ready. Not a bad thing to be prepaired I always thought. Would you say this is decient as a worst case senario or am I just dumb?
Reply With Quote
  #2  
Old 01-04-2007, 02:45 AM
tjsquickcuts's Avatar
tjsquickcuts tjsquickcuts is offline
LawnSite Senior Member
 
Join Date: Feb 2006
Location: Atlanta
Posts: 943
To be honest, all you need is a good pro forma Profit and Loss Spread sheet....I do a Cash Flow Projection and a Projected Cash Flow and Expense Pro Forma Profit and Loss Spread Sheet....Then I keep track of all my expenses on a daily basis, and update my Pro Forma Profit and Loss Spread Sheet every night before bed. It saves so much time in Jan when trying to do taxes.....and helps to give a pretty good projection of the following season......This is an example of what I am talking about. This is one of my spread sheets from 2004....
Attached Images
 
Reply With Quote
  #3  
Old 01-04-2007, 02:57 AM
topsites topsites is offline
LawnSite Fanatic
 
Join Date: Mar 2005
Location: Richmond Virginia
Posts: 21,677
Please don't make the mistake of assuming you'll earn enough in your first year to make your monthly payments. Otherwise you'll most likely end up defaulting on those loans and end up somewhere down in the Fico 550 range with an HR credit rating wondering how you'll ever pull yourself back up out of the mess you done got yourself into.

I grossed 10,000 my first year.
There's no way I could've made payments, good thing all my stuff was paid for.

So, keep working your full-time job for a few years while you save your money.
Once you have 5 or 10 thousand cash, you'll be way better off paying for everything outright.

Think small, and you won't fall so far

Peace out.
Reply With Quote
  #4  
Old 01-04-2007, 07:23 AM
TURFLORD's Avatar
TURFLORD TURFLORD is offline
LawnSite Senior Member
 
Join Date: Nov 2004
Location: New Jersey
Posts: 836
A new truck shouldn't have too much in the way of replacement or repair for the first few years. Front end depends on what you run over at the dump or slide into in the snow. Oil change will cost you $45 to do it yourself. Air filters aren't meant to be replaced for quite some time.
__________________
Conan, what is best in life? To crush the Democrats, to see them driven before me, and to hear the lamentation of the liberals.
Reply With Quote
  #5  
Old 01-11-2007, 11:55 AM
Willofalltrades's Avatar
Willofalltrades Willofalltrades is offline
LawnSite Bronze Member
 
Join Date: Dec 2005
Location: Northeast Ohio
Posts: 1,000
Quote:
Originally Posted by tjsquickcuts View Post
To be honest, all you need is a good pro forma Profit and Loss Spread sheet....I do a Cash Flow Projection and a Projected Cash Flow and Expense Pro Forma Profit and Loss Spread Sheet....Then I keep track of all my expenses on a daily basis, and update my Pro Forma Profit and Loss Spread Sheet every night before bed. It saves so much time in Jan when trying to do taxes.....and helps to give a pretty good projection of the following season......This is an example of what I am talking about. This is one of my spread sheets from 2004....
Heres your post I forgot about. I started working on this last night. Should have followed your advice from the begining because your post was definatly #2 lol. Thanks
Reply With Quote
  #6  
Old 01-11-2007, 12:16 PM
LB1234 LB1234 is offline
LawnSite Gold Member
 
Join Date: Dec 2004
Location: Central Jersey
Posts: 3,211
whoops I missed that one also. I guess having a business plan in place can't be mentioned enough though.


BTW, I use the book "How to Write A business Plan" by Mike McKeever published by Nolo. It has blank forms, examples, and a step by step procedure for writing up the business plan. It has worked well for us over the years.

BTW, I use excel and word for my business plan. Excel is a great tool for spreadsheets and P&L's. I have different worksheets for different items:loan interest calculation, cash flow forcast, capital spending plan, fixed expenses, etc. Basically, a change to one rolls up into all the others (Were appropriate) so that I don't have to change each one one by one. Its a great way of looking at what saving costs here or increasing sales there would do.

As a side note, my workbook is something like 20 pages long...and that's just for 2007. I like to take each part of our business (services) and look/evaluate them seperately. I've broken in down to something like 8 or 9 individual services (i.e. leaf cleanups, lawn services, snow plowing, etc.).
Reply With Quote
  #7  
Old 01-04-2007, 07:41 AM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
Start off with a F-150 but book on a 250 or 350 if you must. By used Eq if needed to help you get started.

I like to break my cost into an hourly figure so I can include the expenses in my estimate.
Reply With Quote
  #8  
Old 01-04-2007, 10:55 AM
HOOLIE's Avatar
HOOLIE HOOLIE is offline
LawnSite Gold Member
 
Join Date: Jun 2004
Location: Northern Virginia
Posts: 3,986
Quote:
Originally Posted by Duekster View Post
Start off with a F-150 but book on a 250 or 350 if you must. By used Eq if needed to help you get started.
That's what I was thinking...really do you NEED a brand new F-350 to tow a 6x12???? Don't believe anyone that tells you a half-ton won't pull a trailer. $700 is a big payment to make.
Reply With Quote
  #9  
Old 01-04-2007, 12:48 PM
nobagger's Avatar
nobagger nobagger is offline
LawnSite Gold Member
 
Join Date: Feb 2005
Location: Pa
Posts: 3,068
Quote:
Originally Posted by Duekster View Post
Start off with a F-150 but book on a 250 or 350 if you must. By used Eq if needed to help you get started.

I like to break my cost into an hourly figure so I can include the expenses in my estimate.
Yeah start off with even a newer used truck, Our 06 F250 SD is running us 525.00/mo and a diesel wasnt much more than our truck. Plus if you do get a diesel, the fuel wont cost you half that figure per month, our 5.4L gasser only uses a tank (38gallon) every 3-4 weeks pulling our trailer loaded down. Our F250 pulls our 8.5x16 enclosed trailer loaded down like theres hardly anything behind it, diesels IMO are over-rated especially for around town, stop and go traffic.
__________________
J and B Lawncare:

On our own as of 2003. Proud to be a full time, legitimate company.

Equipment we use:
Ford trucks
Pro Line and GatorMade trailer's
Gravely, Exmark, Honda and Snapper mower's
Echo trimmer's and blower's
LittleWonder equipment
BillyGoat equipment
New Holland and Dresser loader's (snow removal)
Fisher snow plow's
DownEaster and Fisher salt spreader's
TurboTurf fertilizer tank

http://jandblawncare.net
Reply With Quote
  #10  
Old 01-04-2007, 01:09 PM
matt spinniken's Avatar
matt spinniken matt spinniken is offline
LawnSite Senior Member
 
Join Date: Feb 2006
Location: Northern MI
Posts: 258
Start small and think big! Improve your chances of being a lasting company and focus your money on growth not really high fixed costs. Good luck!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 11:01 PM.

Page generated in 0.14825 seconds with 8 queries