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  #21  
Old 09-15-2011, 07:16 PM
LwnmwrMan22 LwnmwrMan22 is offline
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Location: Minnesota
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Quote:
Originally Posted by JosephCastille View Post
Why not just mentor someone to take your place as an "office manager/director of operations/vice president" or something along those lines and pay him a fair salary for the work?

That way you get to keep the business but you also get to relax a little and unwind from being burnt out?

Business may even pick up a ton if you can bounce back mentally and sell full time instead of always dealing with field work...
This is where I'm at.

I've been running my business for 23 years now.

I'm now to the point where guys are doing the grass cutting and I'm able to do the more profitable small jobs myself.

In the last two weeks I've sold $50,000 worth of contracts for next year. Some of that was luck, but a lot of it is directly related to the fact when the customer called, I was able to show up and correct a situation, whereas the current contractor was too tied up at other accounts.
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  #22  
Old 09-15-2011, 07:33 PM
greenstatelc greenstatelc is offline
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Join Date: May 2011
Location: spokane washington
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Thanks for all the information. To answer the questions as to what Im going to do in the future, I have a degree in business marketing/ communications, and I am entertaining the idea of moving to Seattle so I can start climbing the business ladder. I have lived in the same place my hole life and I feel if Im burnt out at 26 with lawn care there is no way i would be happy at 40 doing the same thing. The seasonal part of the business gets to me and mainly I just dont want to be old and regret not trying something new

Im thinking about asking $30000 but having $20000 be the lowest i would take.
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  #23  
Old 09-15-2011, 08:12 PM
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PROCUT1 PROCUT1 is offline
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Location: TN
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Originally Posted by supercuts View Post
figure right off the top 33% goes to income tax....at least here in CT so your 60% is already nearly out the window. repairs, supplies, equipment replacement, insurance, etc. you don't mention employees either. payroll, Workman's comp..... do you really know your true operating cost? I know about where mine are but even I dont know 100%. the 25% figure he gave is a ballpark figure that most businesses try to achieve. mine is lower. most are. health insurance companies are only around 4% but still generate ridiculous amounts of money. its worth what you can get for it. contact your accountant if you pay taxes and have one, see what he thinks or if he can point you in the right direction
Income tax does not come "off the top" and its not a factor in the sale.
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  #24  
Old 09-16-2011, 10:02 PM
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Exact Rototilling Exact Rototilling is online now
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Quote:
Originally Posted by JosephCastille View Post
Why not just mentor someone to take your place as an "office manager/director of operations/vice president" or something along those lines and pay him a fair salary for the work?

That way you get to keep the business but you also get to relax a little and unwind from being burnt out?

Business may even pick up a ton if you can bounce back mentally and sell full time instead of always dealing with field work...
Good reply. I'd relish having an employee who didn't tear up my equipment or clients down spouts could be trusted with driving my vehicles etc. ...or sideline and pocket $ using my equipment.
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  #25  
Old 07-06-2012, 10:26 AM
MowguyLuke MowguyLuke is offline
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Join Date: Jul 2012
Location: Dayton, Ohio
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I'm in the same kind of situation. I live in southwestern Ohio and I'm thinking about selling my landscape company. I recently saw in a newspaper listing a company that was selling for 150% of their gross profits. If I were to do the same, my business would be worth $235,000. But I happen to know for a fact that in this economy nobody is going to fork over that kind of cash for an anual net profit of about $40k. I would be happy to get $100k for my business. I figured my assets are worth about $50-60k and the rest would be the rights to the customers and my reputation. My estimated gross income this year is about $160k.
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  #26  
Old 07-07-2012, 12:04 AM
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wbw wbw is online now
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Location: houston tx
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Quote:
Originally Posted by PROCUT1 View Post
Income tax does not come "off the top" and its not a factor in the sale.
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Thank you. 33% of gross...holy cow.
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  #27  
Old 07-07-2012, 12:06 AM
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wbw wbw is online now
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Quote:
Originally Posted by greenstatelc View Post
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!
List it with a business broker. You might get $125,000 if your tax returns support your $63,000 number.
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  #28  
Old 07-07-2012, 01:16 AM
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The Grounds Crew The Grounds Crew is offline
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Location: Bellevue Washington
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It's sad to hear your getting out of the business, but Seattle is an awesome place. I'm from there and absolutely love it. If you have questions about the city feel free to ask me. I would also recommend joining LinkedSeattle and EastsideConnections on LinkedIn. It is great for networking and you will meet a lot of CEOs and well known people. Good luck with your ventures. What kind of work are you planning on doing in Seattle? Oh yeah my sister goes to Gonzaga.
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  #29  
Old 07-07-2012, 07:01 AM
Roger Roger is offline
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Join Date: Dec 1999
Location: McMurray, PA
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Quote:
Originally Posted by Exact Rototilling View Post
Good reply. I'd relish having an employee who didn't tear up my equipment or clients down spouts could be trusted with driving my vehicles etc. ...or sideline and pocket $ using my equipment.
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Such a person is probably not going to work for you or anybody else, rather have his own business.

Kudos to the OP for the decision to "get out." At your age, career is a long time ahead of you, and cutting grass is not a plan. No, we don't know the details of your situation, but using your education is a far better plan. NOW is the time to have made this decision, and get started on a path that will likely lead to a much better future.
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  #30  
Old 07-07-2012, 07:35 AM
SSmith SSmith is offline
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Join Date: Nov 2004
Location: Cincinnati, Ohio
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Quote:
Originally Posted by Roger View Post
Such a person is probably not going to work for you or anybody else, rather have his own business.

Kudos to the OP for the decision to "get out." At your age, career is a long time ahead of you, and cutting grass is not a plan. No, we don't know the details of your situation, but using your education is a far better plan. NOW is the time to have made this decision, and get started on a path that will likely lead to a much better future.
What an incredibly stupid thing to say. Yes, rack up all kinds of debt training for a career that has likely already been outsourced to India years ago. Compete with the 1000's of other unqualified kids who "had to go to college just because" who all submit their resume' for 2 open positions. Genius.

No, being a self-made, self-employed man is the much better route. It's the infinitely more prosperous route. Always has been. Always will be. that's the american dream.

You can't go work for GM for 40 years once you turn 18 and retire 2 Florida with a million in retirement saving anymore. Those times are long gone.
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