Solo vs employee's

[smallstripesnc]

Im solo and want to stay solo. Im happy with doing 10-15 a day 5 days a week and idk how you figure expenses would be more than $2000 a month. With a six months mowing season thats $12000 thats plenty to cover taxes, fuel, truck tires, mower maintenance etc...
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[cpllawncare]

Originally Posted by smallstripesnc

Im solo and want to stay solo. Im happy with doing 10-15 a day 5 days a week and idk how you figure expenses would be more than $2000 a month. With a six months mowing season thats $12000 thats plenty to cover taxes, fuel, truck tires, mower maintenance etc...
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2k/month doesn't even cover my salary? much less me and a helper?

[smallstripesnc]

The $10 a lawn taken out for expenses is the $2000 which is $12000 a 6 month season. And the $15 profit is $3000 profit a month and $18000 a 6 month season just from mowing. Of course ill be making more from aeration,etc...
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[cpllawncare]

Originally Posted by smallstripesnc

The $10 a lawn taken out for expenses is the $2000 which is $12000 a 6 month season. And the $15 profit is $3000 profit a month and $18000 a 6 month season just from mowing. Of course ill be making more from aeration,etc...
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Ok you've covered six months out of the year what happens then?

[yardguy28]

Originally Posted by cpllawncare

I know I'm preaching to the choir here, I've been told a thousand times that there really are guys that just want to make a few dollars and that's it, it just boggles my mind why you don't have enough gumption to go after something more.

my suggestion would be not everyone desires the tangible things in life. for some its enough to have just the basic needs in life. you don't need $100,000 a year for the basics in most locations.

Originally Posted by cpllawncare

2k/month doesn't even cover my salary? much less me and a helper?

well I don't really pay myself like I should so I can't figure salary for myself per month. I just write myself if I ever need money, which isn't often and isn't much.

as for the rest of expenses. the year before last my expenses were just about a $1000 a month.

[Darryl G]

A cost of $10 per $25 certainly is possible for a solo operator...that's a net of 60%. I still have some work to do on my 2012 books, but I came in at 58% in 2011.

[SECTLANDSCAPING]

Originally Posted by Darryl G

A cost of $10 per $25 certainly is possible for a solo operator...that's a net of 60%. I still have some work to do on my 2012 books, but I came in at 58% in 2011.

thing is theres not much cost to run solo. Its when you expand that you hit a wall where it takes so much investment to get to the next level.

For a solo guy once the equipment is paid for there profit margins are high. For a company thats always expanded they have to take a break on growing to see the margins.

When you add a employee, or another truck and mower, you see the cost rise.

[nylesedwards]

Originally Posted by smallstripesnc

Hello everyone,

While I have some down time I have a question to ask all of you that may have been down this route.

I started my business solo and have been doing great. This fall I hired a close friend to help me with leaf removals. Without help during leaf season it would of been very difficult with my current set up since I have to lift my leaf vacuum off the tailgate and unloading the leaf box on the back of my truck would of been a real pain.

For the upcoming mowing season he plans to work with me but after doing the math I won't really be making more with the help. If anything I'll see a loss in income for myself.

Here's the breakdown.

SOLO:
10 yards a day at $25 per lawn: $250
Per week: $1250
Per month: $5000
Expenses: $500 per month
So I pocket $4500 before taxes

WITH ONE EMPLOYEE:
I expect I can do 14 per day at $25 per lawn: $350
Per week: $1750
Per month: $7000
Expenses: $800 (with 2 36in mowers going and more driving)
Employee pay at $12hr 40 hrs a week: $1920 mo
Pocket $ $4280 before taxes

I know the difference isn't that much but I shouldn't be taking a loss when I hire someone. I figure I really can't do more than 14 a day with help. Maybe I can do more than 14 a day with help but I'm really not sure since I know I can do actually 11 a day solo. Now with the expenses of hiring help (legal wise) and knowing I'll be losing cash actually and taking on more lawns and wear and tear on my equipment is it worth it? I DO want to expand my business and hiring help is the only way to expand but I want repeat business every season because I do a very good job not go so fast and have employees mess up so they hire someone new every year like a lot of people do.

Any advice on my situtation?

Think about it in the long run. If you gain 20 more jobs but aren't making quite as much money with an employee the next season you will start out with 20 more customers and be making more money. Hire and grow your business if you want to make the big $$$
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[Darryl G]

Originally Posted by SECTLANDSCAPING

thing is theres not much cost to run solo. Its when you expand that you hit a wall where it takes so much investment to get to the next level.

For a solo guy once the equipment is paid for there profit margins are high. For a company thats always expanded they have to take a break on growing to see the margins.

When you add a employee, or another truck and mower, you see the cost rise.

No doubt.

I'm not quite solo, it's a family business, but close enough. I do try to grow my revenue each year but without really growing the company. I do that by getting the best, most profitable customers I can and trying to eliminate holes in my schedule. I was just trying to confirm that the OPs cost figures are not unrealistic for a solo operator as some have suggested. That doesn't mean there aren't many things he's doing that I would do differerently or that I don't agree with much of what others have said.

[Chilehead]

Been solo about 95% of the time, as I am right now. It works very well for me. My daily routine (during mowing season) is comprised of waking up at 6:00am and having my last yard of the day complete by 4:00pm. I unload my trailer, return phone calls, and close out the day's paper work from 4:00 - 5:00. From 5:00 - 10:00pm, it's my time for whatever (usually a 40K on my bicycle). Life is good.