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  #31  
Old 08-11-2013, 10:45 PM
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94gt331 94gt331 is offline
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I do full service lawn and landscaping services. I have a crew of Myself and3 fulltimers around $300,000 a year in sales and working with a %17 profit margin, everyone needs to know there margins in order to answer this important question.

Another thing I ask myself is I think my profit margin would be higher if I worked solo honestly. But We do alot of landscaping and I need help for the heavy labor etc. This buisness seems to have little profits on each dollar your guys make you. Just got to operate lein in debt and work efficient. Guys slacking get rid of them. I talk to my wife alot about maybe going back to solo with a part time guy. I could make a decent living on my mowing accounts. I guess I enjoy the rush right now, but the older I get, only 31 right now but still some day might want to slow down with the employees. Good luck everyone!
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  #32  
Old 08-11-2013, 10:53 PM
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94gt331 94gt331 is offline
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Quote:
Originally Posted by Will P.C. View Post
Payroll issues are serious as that is likely where most of your cash flow is going.

Some of the bigger companies have systems in place where the newest workers get sent home, have to call in to see if needed, etc when you aren't dealing with steady work and have problems like mother nature that no only effect your ability to work, but your sales as well.

Sometimes you have to make the call to scale back on employees while other times you have every hand on deck working overtime.

This is a seriously complicated issue where the number of variables at play is huge.
Another great piece of advice from Will p.c. Everyday in the landscape field is different. You might have 2 guys working a day and hit $700-900 mowing and the next day things don't go right and they make $300 barely covering payroll let alone your truck and expense payments. These factors happen alot and when you have more guys working the more risk for failure. Sad fact I can produce about as much mowing by myself most days as my crew of 2 guys can. But sometimes we just need help to get the work done.
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  #33  
Old 08-12-2013, 06:37 AM
Mark Oomkes Mark Oomkes is online now
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Originally Posted by newguy123 View Post
Okay...well I think it does sir. It's a leading question...as in leading to what type of the accounts he has/what size?

Thank you though...
How about you give us a good, detailed explanation of why size and what type of accounts has anything to do with cash flow?
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  #34  
Old 08-12-2013, 06:55 AM
Mark Oomkes Mark Oomkes is online now
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Quote:
Originally Posted by Charles View Post
I said net income with no employee figured in.
Net income has nothing to do with cash flow. A medium or large company can gross a million and net $100K and still have cash flow issues.

TruGreen, back in the day, had cash flow issues every spring. They'd dip into their line of credit for $1 BILLION every year. But they were profitable at the end of the year.

Quote:
Originally Posted by 94gt331 View Post
Payroll can be a challenge for me at times. It allways works out though week to week. We are allways busy but we do small jobs and we have to move around alot to be able to meet payroll. Overall you have to know how much you need to make a day with your helper to cover your expense and payroll. Set your daily goal and as long as you cover that goal everyday you should be able to pay him just fine every week. Other thing's can make it a challenge sometimes, slow paying customers and equiptment that breaks etc and mess things up sometimes, but if your going to have a employee it's wise to build up a safty net account to have backup money for slow times or bad weeks.
Just amagine larger crews of 10 or more guys totally different than just 1 or 2 guys think about how much money they need to make daily just to make it.
You have some valid points about efficiency, but again, how does that relate to cash flow?

The OP needs to answer seabee's questions and determine if he really has enough work for 2 people. Until then, all these other questions, speculations, guesses, etc are confusing the issue.

This is basic business, and if you don't understand cash flow vs net profits vs gross, just subscribe to the thread and don't attempt to give any "advice".
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  #35  
Old 08-12-2013, 11:28 AM
seabee24 seabee24 is offline
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The OP said "cash flow issues" , not profitability issues

Granted he might not know the difference between the two.

If he truly has a cash flow issue. He may or may not be profitable. But his current problem is caused by him having to pay out his labor and bills before he is paid. Solutions are

1. Get paid sooner from multiple methods
2. Save money in an account to help with float time
3. Reduce amount you pay out
4. Change the terms of when your payouts are due

If he has a profitability issue and is having cash flow problems because of not being profitable

1. Don't charge enough
2. Charge enough per hour but are in efficient
3. Bid jobs too low
4. Have high direct costs
5. Have too high over head
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  #36  
Old 08-12-2013, 12:09 PM
CL&T CL&T is offline
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Quote:
Originally Posted by bwanderson79 View Post
I started this business a year ago as a part time business while attending college. This summer I have gone full time with and now have one employee who has been helping me since mid-June. I am finding that meeting payroll puts a financial strain on the budget. I depend on this income to support my family and I only bill my customers at the end of the month. I pay him $10/hr, which is the standard rate in my area.

My question is how do you guys deal with payroll and cash flow issues? Any advice in these areas would be appreciated. Thanks.
As seabee24 says, are you really having cash flow problems or is it that you just don't generate enough income for two people?

Quote:
This summer I have gone full time with and now have one employee who has been helping me since mid-June. I am finding that meeting payroll puts a financial strain on the budget.
What I am getting from this is that you hired an employee "to help you" and that's not the way it works. If you hire someone to help you do your work, now you have to split your income with him. You use an employee to generate MORE income by enabling your business to handle more and larger accounts. An employee that simply helps you get things done quicker or easier isn't doing a thing except cost you money.
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  #37  
Old 08-12-2013, 09:01 PM
newguy123 newguy123 is offline
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Quote:
Originally Posted by Mark Oomkes View Post
How about you give us a good, detailed explanation of why size and what type of accounts has anything to do with cash flow?
Because what I started with was a leading question...time to provide valuable/helpful information without all the critiques. Don't take it personal bud. Lets help one another out.

Have a great evening Mark.
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  #38  
Old 08-13-2013, 06:08 AM
Mark Oomkes Mark Oomkes is online now
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Quote:
Originally Posted by newguy123 View Post
Because what I started with was a leading question...time to provide valuable/helpful information without all the critiques. Don't take it personal bud. Lets help one another out.

Have a great evening Mark.
So was mine, but you didn't follow. Let me help.

Tell me how these scenarios are different and help the OP with cash flow.

The OP has 5 customers, large commercial and it takes 1 day each to service them. He grosses $100,000 per month. Billed at the end of every month.

Or:

The customer has 500 customers, small residential and he services 100 per day and grosses $100,000 per month. Billed at the end of every month.

Now, in detail, please explain why size and type of accounts has anything to do with cash flow.
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  #39  
Old 08-13-2013, 05:54 PM
newguy123 newguy123 is offline
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Quote:
Originally Posted by Mark Oomkes View Post
So was mine, but you didn't follow. Let me help.

Tell me how these scenarios are different and help the OP with cash flow.

The OP has 5 customers, large commercial and it takes 1 day each to service them. He grosses $100,000 per month. Billed at the end of every month.

Or:

The customer has 500 customers, small residential and he services 100 per day and grosses $100,000 per month. Billed at the end of every month.

Now, in detail, please explain why size and type of accounts has anything to do with cash flow.
Trying to get 500 customers to pay on time, every time is a lot more difficult than 5 customers; that speaks a lot to cash flow.

I have more answers if you want Mark.
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  #40  
Old 08-13-2013, 07:03 PM
Mark Oomkes Mark Oomkes is online now
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Wasting monitor ink.

I'm done until something intelligent comes along.
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