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Old 09-14-2011, 03:20 AM
greenstatelc greenstatelc is offline
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Join Date: May 2011
Location: spokane washington
Posts: 4
How much is my lawn care business worth?

I am considering selling my lawn care business because I am burnt out. I started the business 14 years ago when I was 12. I currently have 93 weekly accounts I live in spokane washington so we get about 26 mows on average a year. All the lawns are in a three mile radius so the lawns that are the farthest away from each other it takes no longer than fifteen minutes.

INCOME

My average lawn price which includes sales tax is $25.44. So every week the business gross is $2742. I estimate the business will net $45000 after taxes and everything. It takes two guys 25 hrs to mow the lawns each week. that doesnt include dump trips or maintenance time or paper work time.

I also have 30 snow throwing accounts. I bill out $700 every time it snows 2" or more and $850 if it snows 6" or more. last year I made around $5500. It takes two guys 6 hrs to complete the route.

I also offer pruining, aerating, power raking, and cleanup for our clients. This year that made $8000.

So this year $63000.

EQUIPMENT

36" Toro Proline HyDro Kawa (5years old but runs like a beast)
2 26" exmarks ( both 3 years old) good shape
1 26" exmark part mower.

2 shidawa commercial trimmers one is 3 months old the other a year old
1 echo commercial stick edger 2 yrs old

1shidawa back pack blower 4 yrs old
1 shidawa hand held comm. three months old
1 Echo hand held blower 2 yrs old

1 blue bird aerator ten yrs old runs good
1 blue bird pwr raker 5 yrs old

1 aerions 28" snow thrower 1 yr old
1 single stage toro commercial thrower

Nice 7 ft X 10 ft trailer. fully ready to go trimmer rack and signs. and front storage.

93 Ford ranger with nice fully enclosed bed with signs. 4X4 dual cab. Runs good 210,000 miles. well maintained.

MARKETING

full service website
well recognisable logo
phone.com account so the number on the signs can be used



ANY advice or suggestions on how to value this setup would be appreciated. THanks for reading!
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Old 09-14-2011, 07:37 AM
LwnmwrMan22 LwnmwrMan22 is offline
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Your equipment is worth about $10,000... truck, trailer, EVERYTHING, top price.

That would mean your business is probably worth about... $10,000.

You say you have revenue of $2700 / week, for 26 weeks. That's roughly $70,000 per year. At a 25% profit, you'd be netting around $17,500 but you say you will make $45,000 after all is said and done.

At best, you MIGHT get $20,000.
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Old 09-14-2011, 08:11 AM
hackitdown hackitdown is offline
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I tend to agree with LwnmwrMann22, a lawn business is worth the value of the equipment. But, you may also be able to sell the account list to a competitor. Or sell the business to your employee, have him pay you $500 per week for a year or something like that.
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Old 09-14-2011, 11:08 AM
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PROCUT1 PROCUT1 is online now
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Location: TN
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On lawnsite the consensus will be that its worth the used value of the equipment.

In the real world the accounts have a lot of value. Generally the range is 3 months to one years gross plus the equipment.
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Old 09-14-2011, 11:37 AM
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Exact Rototilling Exact Rototilling is online now
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Is the service area inside Spokane valley borders? East of Havana street? Are all you accounts bagged, side discharged mulched or combination. Any additional fee for clipping haul off?

What size properties or lawns for $25 per mow?
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Last edited by Exact Rototilling; 09-14-2011 at 11:44 AM.
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Old 09-14-2011, 12:01 PM
joshman108 joshman108 is offline
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Join Date: Jan 2011
Location: St Louis
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All i know is that in my area, even if they dont gross over 80k, ive never seen a lawn business for sale for less than 50k.

Which seems obscene to me, but maybe people are willing to pay for something thats already established.
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Old 09-14-2011, 12:15 PM
LwnmwrMan22 LwnmwrMan22 is offline
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Location: Minnesota
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This year I'll gross just over $300k, 90% maintenance, 8% install, 2% irrigation. I've got about $200k in new(er) trucks, all equipment is '08 or newer and government and commercial contracts signed for multiple years. If someone were to tell me they would pay me they would pay me $375k, I wouldn't be able to sign the papers fast enough.
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Old 09-14-2011, 01:44 PM
dahammer dahammer is offline
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Location: Mississippi
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I've heard Dave Ramsey say numerous times that a business is generally worth 3 to 5 times it's average NET profit. The average being based on the last 3 or 4 years. The equipment would be extra. Seems about right to me assuming the accounts will transfer, but people are funny about that kind of thing sometimes.
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Old 09-14-2011, 05:47 PM
greenstatelc greenstatelc is offline
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Location: spokane washington
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No it is all on the northside of spokane
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  #10  
Old 09-14-2011, 05:53 PM
greenstatelc greenstatelc is offline
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Location: spokane washington
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Quote:
Originally Posted by LwnmwrMan22 View Post
Your equipment is worth about $10,000... truck, trailer, EVERYTHING, top price.

That would mean your business is probably worth about... $10,000.

You say you have revenue of $2700 / week, for 26 weeks. That's roughly $70,000 per year. At a 25% profit, you'd be netting around $17,500 but you say you will make $45,000 after all is said and done.

At best, you MIGHT get $20,000.
Where does 25% come from? We have income tax and sales tax and a number of overhead costs but the net profit far exceeds 25% with the limited drive time of this business ( it costs us $125 a week in gas and we are billing out $2700) It is more like 50-60% profit. I would even mow with the new owner for a month to get them off to the right track with the new owners.
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