Register free!

The Green Industry's Resource Center


Reply
 
Thread Tools   Display Modes
  #51  
Old 04-04-2013, 12:07 AM
205mx 205mx is offline
LawnSite Bronze Member
 
Join Date: May 2011
Location: Nashville, TN
Posts: 1,771
Quote:
Originally Posted by TFLE View Post
It's not that far off... If your billing 2500k a week for eight months (80K) Winter work (10k lets say) = 90k. Now as a solo operator nearly all my equipment is paid.

10000k gross a month
- 6% tax
- 150 garage rent
- 200 mower payment
- 100 cell phone
- 300 truck fuel
- 400 mower fuel
- 50 liability ins.
- 300 misc.
7900 net over 8 months = 63k plus winter profits (around 7k) not an unbelievable total.
Forgot vehicle insurance and tags and whatnot.

MAYBE for a single season.
But then... Tires. Truck, trailer.
Mower blades
Trimmer line
Trimmer oil
Trimmer replacemt
Blower replacement
Mower replacement
Truck needs u joints
Trailer floors
Work attire and boots
Mulch costs
Misc tools
Uh oh mower tire blowout
Printer ink / stamps or CC processors
Advertisement
6% tax? Buahahaha
Posted via Mobile Device
Reply With Quote
  #52  
Old 04-04-2013, 12:28 AM
TFLE TFLE is offline
LawnSite Member
 
Join Date: Mar 2013
Location: Hollidaysburg
Posts: 134
6% tax was just sales, the rest of your stuff is nickel and dimes stuff and there was a $300 misc. tag there. All the stuff you listed wouldn't come to more than a thousand bucks a year. Unless you have to replace a mower or truck or something. Point was if you run your business right you can see margins that high. I was having this talk with a guy that has employees and he was telling me what his margins were and I was shocked they were so low. He made a bit more than I did but at what cost. To get the work and support the employees he had to be leveraged on equipment and additional costs. Right now I like it that if things are slow I can make it a loooonnnggg time before worrying about things, I don't have 3k in bills a month. For now I will take the less stress factor for the extra 10k. But not ruling anything out.
Reply With Quote
  #53  
Old 04-04-2013, 12:50 AM
J & D Greens's Avatar
J & D Greens J & D Greens is offline
LawnSite Senior Member
 
Join Date: Apr 2008
Location: englewood, Colorado
Posts: 758
Overhead???

Most of the guys that are figuring out their net. Want that feel good felling that you get when you leave out little (big) things like true vehicle cost, postal box, equipment up-keep, on and on and on. There is now way some one who is cranking in close to $100 grand. Is not spending at least 1/3 of it in overhead. Before they have to pay Uncle Sam.

When my wife shows me our true net, It can be a little discouraging, it is truly 1/2 (give or take a little) of what we bring in. But then I realize hey where can I make what I do working part-time 9 months out of the year (being able to adjust things to have family time to boot) and most of the winter off (some snow removal). Not a bad gig, but unless I take some risks like a lot of you have (swinging for the fence). I don't see myself getting rich either.

That is what is so nice about what we do. The possibilities are truly endless.
__________________
J&D/Greens
My picture thread;
http://www.lawnsite.com/showthread.php?t=342687
Reply With Quote
  #54  
Old 04-04-2013, 01:59 AM
JContracting's Avatar
JContracting JContracting is online now
LawnSite Bronze Member
 
Join Date: Oct 2011
Location: Champlin, MN
Posts: 1,801
Quote:
Originally Posted by 205mx View Post
Forgot vehicle insurance and tags and whatnot.

MAYBE for a single season.
But then... Tires. Truck, trailer.
Mower blades
Trimmer line
Trimmer oil
Trimmer replacemt
Blower replacement
Mower replacement
Truck needs u joints
Trailer floors
Work attire and boots
Mulch costs
Misc tools
Uh oh mower tire blowout
Printer ink / stamps or CC processors
Advertisement
6% tax? Buahahaha
Posted via Mobile Device

Not to mention truck insurance! And as the guy above said, a mailbox @ post office or ups store, etc., I could go on and on with the expenses.

And sales tax should not be considered in your gross revenue, it's money that is "not touched" (so to speak), plus it's 7.275% here in Hennepin County in MN. I'd say the most you could net as solo grossing 90k is 60k, before you pay income taxes.


I plan to grow my business as much as possible, 7-8 figures at some point, I'd say when I want my company to be at that level but I'd probably get laughed at by some of the people on here. I'm a firm believer in the E-Myth and with correct systems in place (I'm not saying all headaches will be avoided) it is definitely possible. I also read a good amount of books, some that are recommended by companies on here (ETW), I'm currently in the middle of "Green Side Up", great book so far. But in regards to money, I'm not one to ever be satisfied with where I'm at, there's no such thing as too much money.
__________________
2011 CCSB F350 6.7 Lariat
2004 CCSB F250 6.0 XLT w/ Boss 8'2" Power VXT
2001 ECLB Chevy 2500 HD 8.1 LT
2014 Diamond Cargo 8.5' x 20' Enclosed Trailer - Fully Loaded Interior
Exmark Lazer Z X-Series 52" w/ Ultravac
Exmark TTHP 36"

Graduate - Anoka Technical College w/ Associate's in Hort/Landscape - May 2013
In business since Feb 2011
23 Years Old

When you have systems, you have control.

"If youíre born poor, itís not your mistake. But if you die poor, it is your mistake."

Last edited by JContracting; 04-04-2013 at 02:06 AM.
Reply With Quote
  #55  
Old 04-04-2013, 07:09 AM
Greg78's Avatar
Greg78 Greg78 is offline
LawnSite Silver Member
 
Join Date: May 2008
Location: Southwest, FL
Posts: 2,012
I love how people always say my equipment/truck is paid off/for. Like it's a one time purchase and those things last forever never needing replaced.
Reply With Quote
  #56  
Old 04-04-2013, 08:21 AM
Landscraper1's Avatar
Landscraper1 Landscraper1 is offline
LawnSite Senior Member
 
Join Date: Jan 2010
Location: Southeastern Ma.
Posts: 733
Quote:
Originally Posted by TFLE View Post
It's not that far off... If your billing 2500k a week for eight months (80K) Winter work (10k lets say) = 90k. Now as a solo operator nearly all my equipment is paid.

10000k gross a month
- 6% tax
- 150 garage rent
- 200 mower payment
- 100 cell phone
- 300 truck fuel
- 400 mower fuel
- 50 liability ins.
- 300 misc.
7900 net over 8 months = 63k plus winter profits (around 7k) not an unbelievable total.
I think yor numbers are a little off but, even if they are correct, where's your salary? Your salary is part of your expenses. That is one factor many solos leave out.
Reply With Quote
  #57  
Old 04-04-2013, 09:03 AM
McFarland_Lawn_Care's Avatar
McFarland_Lawn_Care McFarland_Lawn_Care is offline
LawnSite Bronze Member
 
Join Date: Jan 2007
Location: Sedgwick, Maine
Posts: 1,126
Quote:
Originally Posted by Landscraper1 View Post
Your salary is part of your expenses. That is one factor many solos leave out.
Nailed it! Most also don't track their hours either. If a solo tracked his hours (all hours spent on the business) he would be pretty surprised at his hourly rate. I know I was went I first started.
__________________
GM trucks
Toro Z masters
Permagreen Centri
Stihl 4mix handhelds
+1 fully stocked fridge in the shop!

USMC!!
Reply With Quote
  #58  
Old 04-04-2013, 09:19 AM
orangemower orangemower is offline
LawnSite Silver Member
 
Join Date: Dec 2011
Location: pa
Posts: 2,773
Quote:
Originally Posted by Greg78 View Post
I love how people always say my equipment/truck is paid off/for. Like it's a one time purchase and those things last forever never needing replaced.
I find it funny myself. While my junk is paid off, I still look forward to buying new again in a few more years. That's what replacement costs are for right?
Reply With Quote
  #59  
Old 04-04-2013, 09:22 AM
jrs.landscaping's Avatar
jrs.landscaping jrs.landscaping is offline
LawnSite Silver Member
 
Join Date: Mar 2012
Location: Maine
Posts: 2,411
Does anyone know where I can find that shop for $150 a month?
__________________
Reply With Quote
  #60  
Old 04-04-2013, 09:27 AM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,255
Quote:
Originally Posted by TFLE View Post
It's not that far off... If your billing 2500k a week for eight months (80K) Winter work (10k lets say) = 90k. Now as a solo operator nearly all my equipment is paid.
Nothing wrong with being a solo LCO.
Many enjoy doing the work and want to be their own boss.

Though if $90,000 gross yields a $60,000 net for a solo.

Then a second truck yields another $90,000. Same $30,000 costs. After paying the employee $45,000 the business owner picked up another $15,000 net. $15,000 more and the business owner himself did not have to mow one extra yard.

I have no desire to grow past one truck. Though if the work fell into my lap with a gowth rate that was easy to handle I do not know which way I would go.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 06:31 AM.

Page generated in 0.09410 seconds with 7 queries