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  #31  
Old 07-07-2012, 09:21 AM
Duekster Duekster is offline
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Quote:
Originally Posted by FoghornLeghorn 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...
He has hit that tweener point. Can not afford to hire someone to do his work and stilll make a living. Yet that is likely what he needs to do. Time to try and take this to the next level. He needs to get his Score, work on a business plan and grow this thing so he can move out of the field.

Maybe he just wants out

Last edited by Duekster; 07-07-2012 at 09:26 AM.
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  #32  
Old 07-07-2012, 09:34 AM
Duekster Duekster is offline
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Originally Posted by greenstatelc View Post
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.
Sadly, that happens to many people, it is called a mid-life crisis. It will happen no matter what.

You have basically a strong foundation at a very young age. You have a lot of freedom you Will not get in the " I have a job" world.

My $0.02 cents is to build a business plan and work it, You could spend 2 years making this thing grow and sell it for twice as much if need be.

I seriously doubt you will regret growing a landscape company into a million dollar business or even bigger. This is your best chance to use your education and natural gifts.

There are other services you can leverage this thing into as well. You just need to get out of your rut and stop thinking the grass on the other side of the fence is greener.
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  #33  
Old 07-08-2012, 10:33 AM
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snomaha snomaha is offline
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Originally Posted by greenstatelc View Post
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.
You aren't making 50-60% profit if you aren't figuring your own fair market wage. My experience has been that green industry companies netting 15% are rock stars.

Excluding the equipment I would start with net income after taxes. I want to pay back the acquisition in 5 years or less with profit after taxes.
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  #34  
Old 07-09-2012, 11:48 AM
caseysmowing caseysmowing is offline
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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.

Sad but very true.
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  #35  
Old 12-15-2014, 05:08 PM
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Cedar Lawn Care Cedar Lawn Care is offline
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I have seen 3 different companies that were selling their companies for very close to their gross for the year including their equipment.
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  #36  
Old 12-15-2014, 06:18 PM
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TPendagast TPendagast is online now
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Originally Posted by Cedar Lawn Care View Post
I have seen 3 different companies that were selling their companies for very close to their gross for the year including their equipment.
This thread is YEARS old.
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  #37  
Old 12-15-2014, 06:24 PM
jsf343 jsf343 is offline
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Quote:
Originally Posted by PROCUT1 View Post
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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I agree with Procut on this, accounts have a lot of value ESPECIALLY if they are under contract. We have bought out a few other businesses and generally 3-6 months gross is a good price, although there are many things to consider with that as well (location, services, contract renewal date, etc).
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  #38  
Old 12-15-2014, 09:24 PM
jonnyz37 jonnyz37 is online now
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What the accounts are worth is debatable.... However we have to start with one basic understanding.... While he is selling 93 accounts, the buyer won't be gaining all 93. Ask anyone who has bought a big customer list if they kept all or most accounts just 6 months after the purchase. Most would say to figure on keeping half... That's 50%, of the customers. And before the purchase, the buyer needs to talk face to face with every account and see if they plan on sticking around and what their expectations are from the new buyer. Buyer beware boys
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  #39  
Old 12-15-2014, 11:03 PM
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Cedar Lawn Care Cedar Lawn Care is offline
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Quote:
Originally Posted by TPendagast View Post
This thread is YEARS old.
You are right. The topic will never stop being relevant though. I enjoy the discussion.
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  #40  
Old 12-16-2014, 12:08 AM
jonnyz37 jonnyz37 is online now
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Quote:
Originally Posted by Cedar Lawn Care View Post
I have seen 3 different companies that were selling their companies for very close to their gross for the year including their equipment.
I can't imagine paying one year gross.... You lose close to hall the accounts, pay your labor costs and other expenses and it takes like 3 years to break even.... Really? As far as being under contract, that ends when company is sold. So those contacts are little more than nothing at all. You just gotta hope the customers don't know that. One year gross.... Crazy, gambling, did I mention crazy yet?
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