Anyone grossing over a $500,000 ?

Discussion in 'Lawn Mowing' started by Landscraper1, Apr 2, 2010.

  1. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    ya, i'm 20, I run solo, its my 3rd year, a full time college student, and with only 6-7 months of strictly mowing I grossed about 35k. If I got smarter on my prices and charged 50-70 a hour I could gross 100k by myself and have good profit margins.
     
  2. douglee25

    douglee25 LawnSite Senior Member
    from PA
    Posts: 298

    Subscribed.

    Doug
     
  3. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    Don't be discouraged. You will find all kinds on this site. Many are here to learn from each other and appreciate input from successful companies. Others are just bitter and jealous.
     
  4. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    If you don.t give a rat's A## then why do you bother reading this thread? This thread was started to find out if their were any mid sized or large companies on this site.

    I'm sorry if it offends anyone but, I don't understand why. No one has a problem when their is a thread asking about solo operators or LC's making under $100,000.

    So, what's the problem asking who has a larger company. Many come on this site to learn form each other. I think we all can learn alot from these companies. When I first started out, their were not many places I could learn from but, anytime I came in contact with a more successful company, I would take advantage to learn what I could.

    If you are happy as you are, then that's great. But, don't ruin it for others who want more in life.
     
  5. GraZZmaZter

    GraZZmaZter LawnSite Senior Member
    Posts: 740

    What seems to have went back and forth between individuals of this thread is their particular ideology of the exact definition of success. That can neither be defined or disputed!! What success is can only be defined from within. If your happy trucking around by yourself for 30 years banging out 45 accounts a week... than that is success!! If you knock out 10 million a year, work with 60 employees and have a list as long as the mississippi of equipment... than that is success as well. I feel we can all agree that success is defined as happiness. What makes you happy? Whatever you like to do... and only you can define that! Make your hobby a job and never work a day in your life....
     
  6. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Success is not a good word because it leaves to much wiggle room. Most response's will be from small business' and solo operators. The Brickman's will not be here because they have no need to learn anything from us. We won't hear that much from mid sized because they are few in numbers. And most here don't have the knowledge base on mid sized experince to assit the mid sized.


    One can be happy making $50,000 paying his mortgage and bills.

    Thing is there is no one that would not be upset if $500,000 in sales fell into their lap. Or $5,000,000 for that matter.

    You ever here of a person winning $10,000,000 lottery and say no keep $950,000 I only want $50,000.

    Thing is if your not going hungry, eating good, paying off or paid off that mortgage, affording heat/AC, buy a new truck when the old one dies, health ins, etc.... they are content because needs are being met.

    All this does is show we can be happy getting by, but would not be upset if luck caused us to continuely increase our sales.
     
  7. nortonlawncare

    nortonlawncare LawnSite Senior Member
    Posts: 307

    Great thread, even though i don't make 500k or ore a year. if the thread offends anyone then don't read it. but the OP wasn't saying grossing less doesn't make you successful, just wants input from larger companies such as his own
     
  8. tyler_mott85

    tyler_mott85 LawnSite Senior Member
    Posts: 582

    I feel like some readers need to be aware that profit is not what you pay yourself. Profit is how much money is left after you pay yourself.

    I know different business models and different accounting theories will reflect this differently but any company that is grossing over $500,000 in sales is probably going to show their profit or loss after they pay all the employees and themselves.

    Let's say two companies that gross entirely different amounts have the same profit margin. While they may have "profited" different amounts at the end of the year, the employees and the owners could all still be paid the same amount.

    Profit is not what you take home at the end of the day.
     
  9. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,835

    Close...

    I think a more accurate definition of profit is what you have left over after all of the company expenses are paid for [before owner salary]. Then, what you do with that profit is your business.

    Let's say Company A grosses $1Mil a year in sales. After all business expenses, the company has $200,000 left over. The owner decides to leave $50,000 in the company account and pay himself a salary of $150,000.

    Let's say Company B also grosses $1Mil a year in sales. After all expenses the company has $200,000 left over. This owner decides to leave $120,000 in the company account and only takes a salary of $80,000.

    In either case, the profit of the company is basically $200,000. It's just been divvied up differently. That's the number that someone looking to purchase the company is going to look at - the $200,000. Because that's the number that the buyer has to work with. Then the buyer can decide how he wants to divvy that money up after he purchases the company. He's not going to be too concerned with what the previous owner's salary was. Because he is going to chose to do that differently. He's just going to be concerned with the gross profit (before owner salary).

    This is the way we should look at it too. If we just looked at Company A having a profit of $50K and Company B as having a profit of $120K, that would be an erroneous assessment. Each company had a true profit of $200K. It's just what they did with that $200K that is different.
     
  10. torotorotoro

    torotorotoro LawnSite Senior Member
    Posts: 510

    great read
     

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