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  #11  
Old 01-02-2014, 10:58 AM
larryinalabama larryinalabama is online now
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Quote:
Originally Posted by djagusch View Post
Your looking at just the cash at the end of the month. Asset building is something you didn't account for.

While a garage out your house is a asset it really can't be sold unless you move. Having a shop built on a stand alone property is a asset(also a liabilty).

The 8 truck outfit will also have more assets then the 3 truck company. How management rotates them based off cost/payment is more about management style then debt.

The 8 truck sounds more of a stand alone biz model which has more value when you add things up on a balance sheet.

Lastly solo isn't a long term biz model. Its making yourself a job. You go down the biz goes down. The I will hire someone "if" something happens changes the biz model greatly. Will the solo income cover paying a employee and yourself (that is producing little work due to being down)? Maybe short term a couple months, but long term you will need to increase income to offset the cost the new employee.
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Its better to build your "wealth" outside of the business. Trucks and equiptment are assets that go down in value.

Ive been solo for 7 years, and if necessary I could hire a helper if need and still do ok.
  #12  
Old 01-02-2014, 11:30 AM
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Glenn Lawn Care Glenn Lawn Care is offline
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Some good reading here.
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  #13  
Old 01-02-2014, 11:31 AM
djagusch djagusch is online now
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Originally Posted by larryinalabama View Post
Its better to build your "wealth" outside of the business. Trucks and equiptment are assets that go down in value.

Ive been solo for 7 years, and if necessary I could hire a helper if need and still do ok.
A stand alone property that is rented to your lawn care company is how many cpa's would say to set it up as. Is that the outside wealth?

How long would you do ok for? Could you update your equipment trucks as much as you do now or would it need to be cut back? At what point would upgrades be, behind?
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  #14  
Old 01-02-2014, 11:46 AM
sehitchman sehitchman is online now
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This is the conundrum most business owners go through. The return on investment decreases as the size of the operation grows. I've been a risk taker for most of my life. I got to where I disliked the baggage employees brought to my business. Plus trucks and equipment are going to last about half as long if you are not eyeballing their use everyday. So plan on replacing everything twice as often. I really enjoy the solo life I have at this point in my life, but I'm always looking for the next opportunity. The key is the employees, not as much the money or equipment.
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  #15  
Old 01-02-2014, 12:24 PM
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snomaha snomaha is online now
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Only 5% of businesses ever break the 1 million mark. The inability of the owner to let go is the reason why. The owner thinks he's the only person capable of getting things done or tried to delegate once but got burned by a bad hire and can't trust anyone again.

The only way to get through this is to find people who can do things better than you and who don't need to be managed. Will the folks you hire mess up sometimes? Yes, but you've got to push past that. If you suffer the short-term challenges of bringing someone up to speed, your life will get a lot easier and your company will be able to tackle bigger projects and contracts.
  #16  
Old 01-02-2014, 01:22 PM
newguy123 newguy123 is offline
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Originally Posted by snomaha View Post
Only 5% of businesses ever break the 1 million mark. The inability of the owner to let go is the reason why. The owner thinks he's the only person capable of getting things done or tried to delegate once but got burned by a bad hire and can't trust anyone again.

The only way to get through this is to find people who can do things better than you and who don't need to be managed. Will the folks you hire mess up sometimes? Yes, but you've got to push past that. If you suffer the short-term challenges of bringing someone up to speed, your life will get a lot easier and your company will be able to tackle bigger projects and contracts.
Very well said sir! Most owner/operators think they are the best at their job...and may very well be right. But if your goal is to build a business as opposed to a job (depending on what you want) you will have to relinquish control and hire competent people and train them as such.

The best business owners typically aren't the best or smartest in their field. But they've hired the most intelligent/capable to fill their shores while they "manage."

Great thread though!
  #17  
Old 01-02-2014, 02:09 PM
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JContracting JContracting is offline
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Quote:
Originally Posted by larryinalabama View Post
Its better to build your "wealth" outside of the business. Trucks and equiptment are assets that go down in value.

Ive been solo for 7 years, and if necessary I could hire a helper if need and still do ok.
Just because trucks & equipment drop in value that means someone shouldn't build their business more?

Every company in the world faces this issue with whatever equipment they have, whether it be a construction company or a software engineering firm, that's why you make money with your equipment, not only to meet overhead, direct costs, & post a profit but to replace said equipment.

If you're looking for examples of landscape companies that build their wealth within their company, take a look at the top 100.
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  #18  
Old 01-02-2014, 03:03 PM
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JContracting JContracting is offline
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I'd also like to add, directly from E-Myth in the section "A Note from Tony", he states, "Entrepreneurism is the way to build wealth. And yes, you can make all the money you and your family will ever need in the landscaping business. I am living proof."
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'01 Chevy 2500 HD ECLB w/ 8.1 - 06 Tow Mirrors, 285s, 17" MB Chaos Wheels, Torsions Cranked, Airlift Airbags
2014 Diamond Cargo 8.5' x 20' Enclosed Trailer - Fully Loaded Interior
Exmark Lazer Z X-Series 52" w/ Ultravac
Exmark TTHP 36"
225 Gal MN Wanner Skid Sprayer
8' Boss RT3 Straight Blade

Licensed Applicator

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.
  #19  
Old 01-02-2014, 03:30 PM
georgialawn88 georgialawn88 is online now
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Quote:
Originally Posted by JContracting View Post

If you're looking for examples of landscape companies that build their wealth within their company, take a look at the top 100.
Where can i find this list of top 100? I'm interested
  #20  
Old 01-02-2014, 05:14 PM
GQLL GQLL is online now
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here is a link that contains articals on some of the top 100 http://www.lawnandlandscape.com/ll05...companies.aspx

top 100 list 2012

http://www.lawnandlandscape.com/File...0companies.pdf
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