avg. yearly income....rookie

Discussion in 'Starting a Lawn Care Business' started by S.B.N., Mar 30, 2003.

  1. S.B.N.

    S.B.N. LawnSite Member
    from 4
    Posts: 16

    ive been in the home building business for 7.5 years..we sub alot of the work out except the site work and final rake.we hire a local landscaper to plant new shrub and mulch plus hydroseed. I want to start my own property maint./landscape comp.looking for advice from A-Z P.S. I have alot of good contacts and have a good reputation w/all the subs
  2. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    Industry wide % would be along these lines:

    100% administrator (over head) - no more than 10% of sales.

    Working foreman/laborer - $10 to $20 an hour - based on what you can sell your jobs for and how efficient you are in producing them.

    So - if you're working 2,000 hrs a year billable (all additional paperwork and non-billable work is sweat equity starting out), and you pay yourself $15.00 an hour that would be $30,000 a year gross. But - how much revenue can you generate? I would think at this rate you'd better be over $80 K a year or $40.00 per hour if you want to grow your business. Keep your direct labor (what you pay your foreman/laborer, yourself and/or others) under 35% of sales, preferably 30% and you'll be off to the right start.

    Avoid this scenario: If you generate $60 K in sales on 2,000 hrs of work you'll be at 50% direct labor and struggling to buy new equipment and generate the working capital to hire employees and take on larger jobs requiring larger cash flow.
  3. S.B.N.

    S.B.N. LawnSite Member
    from 4
    Posts: 16

    Thank you for your response.It sound like you know what your doing. If you think of anything else feel free to educate me.
  4. KevlarLawnCare

    KevlarLawnCare LawnSite Member
    from Jax, FL
    Posts: 25



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