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  #11  
Old 02-21-2013, 06:23 PM
georgialawn88 georgialawn88 is online now
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Originally Posted by bmoorefield View Post
GMLC is right on the mark at 25%, at least you guys up there in NE had a big snow storm to keep you busy this year. My only advice to growing a business is growing slow. I started in High school with a push mower just to make a couple $$$ for myself. I didnít know it at the time but I have a passion for the work and business. I wanted to learn more about how I could provide a better service then the next guy with a mower. So I decided to get a horticulture degree which also opened up another avenue to make money applying pesticides. By no means am I a huge operation but I have a couple employees and I am still growing and learning. Good Luck to reaching your goal.
Who knows maybe next time you post this will be asking who is at the $500,000 mark.
i didnt say i didnt.... i just asked who did. goog luck reaching your goals. looks like you got a young start thats good!
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  #12  
Old 02-21-2013, 09:05 PM
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Originally Posted by GMLC View Post
To net 100k means your going to need to gross a minimum of 400k. Not sure a one or two man crew could do this. I guess anything is possible. There is always an exception.
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Why would you have to gross 400k to net 100k? A friend of mine just sold his business and had 60% FCF. He grossed about 500k and had a profit of around 275k. This also included snow removal though. He had one helper.
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  #13  
Old 02-21-2013, 09:11 PM
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jrs.landscaping jrs.landscaping is online now
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Why would you have to gross 400k to net 100k? A friend of mine just sold his business and had 60% FCF. He grossed about 500k and had a profit of around 275k. This also included snow removal though. He had one helper.
Install or Maintenance?
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  #14  
Old 02-21-2013, 09:17 PM
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Install or Maintenance?
Mostly maintenance. A few installs but it was mainly from subbing a lot of stuff out and mowing a crazy amount of lawns. They cranked out 40 lawns a day between the 2 of them.
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  #15  
Old 02-21-2013, 09:20 PM
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The guy who bought the business from him triple fliers every house in my area. Puts about 300,000 fliers out every spring. Pretty hard to compete with that..
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  #16  
Old 02-21-2013, 09:20 PM
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GMLC GMLC is offline
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Originally Posted by WPLC View Post
Why would you have to gross 400k to net 100k? A friend of mine just sold his business and had 60% FCF. He grossed about 500k and had a profit of around 275k. This also included snow removal though. He had one helper.
A normal profit margin is around 25%. Never trust anyones word unless you have seen the books and tax records for several years. There are ways to show more profit when selling a business.
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  #17  
Old 02-21-2013, 09:40 PM
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Originally Posted by GMLC View Post
A normal profit margin is around 25%. Never trust anyones word unless you have seen the books and tax records for several years. There are ways to show more profit when selling a business.
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He would have never sold it for as much as he did if it wasn't that profitable.I have talked to many guys around here, and they say they aim for 40%. Overall the main objective is a stable and concise customer base. This will result in high profitability. More equipment or a big location won't. He found ways to maximize the capacity of every asset.
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  #18  
Old 02-21-2013, 09:59 PM
205mx 205mx is offline
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Your not kidding. These next few transition years are going to be the hardest for my company. I can no longer take on anymore work without hiring fulltime. We have had to turn away way to much work. I need to either stay as I am and do well for myself or take a hit on net profit for future growth. Believe me when I say this has been one of the hardest business decisions I have ever made. Im in the dreaded middle zone where its stay small or not. Growing pains are tough!! Also keep in mind its only a 27 week season in NH so fulltime is under 20k.
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Do what your doing for a few years, retain enough earning to continue to pay yourself what you do currently until profits pik back up
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  #19  
Old 02-21-2013, 10:19 PM
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Do what your doing for a few years, retain enough earning to continue to pay yourself what you do currently until profits pik back up
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I have been planning for a couple years and have savings set aside. But its still a hard call.
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  #20  
Old 02-21-2013, 10:40 PM
205mx 205mx is offline
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A normal profit margin is around 25%. Never trust anyones word unless you have seen the books and tax records for several years. There are ways to show more profit when selling a business.
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I did 46%.... For 2012. Want to shave to 50 this year
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