Becoming an "Owner"

Discussion in 'Business Operations' started by TheArchitect, May 31, 2009.

  1. TheArchitect

    TheArchitect LawnSite Member
    Posts: 18

    Im just wondering how the fellows on here who have done it, did it.
    Im talking about creating a business where you just sit back and collect.

    I have a couple Ideas how it would be done, but I would like to see how it was done.

    I would think starting out as a Mow & Blow company you would need to firstly secure enough contracts to hire on a second hand.

    Then secure more contracts to hire on 2-3 more people to run two crews and designate one person as the foreman.

    But at that step you do pure sales and your still "working" the company. So how would you get someone to start doing your day to day operations of the company a couple scenarios I have thought of is acquiring another company and having that owner sign a contract to be sales/comission.

    Or Promote an employee/hire one, give "X" amount of share in the company or comission to fill this spot.

    Cause ultimeately if we can kick back and make money without ever working, thats what we want. So I want to see if it can be done and what kind of numbers would need to be reached to support that.

    TA

    p.s thanks in advance.
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    No sir, fine idea and you're certainly welcome to give it your best shot,
    and rest assured it's what I want too, but it doesn't work.

    The only thing I can think of...
    Is dumping enough into the stock market, in my case 1-2 hundred thousand would do it
    but then most of us who play the stocks use disposable income so it's never enough :cry:

    Then it's not as simple as buying low and selling high, there's asking prices and bidding prices
    meaning I get less when I sell than what I pay to buy for the same stock, plus all the fees along
    the way so if I don't plan this long term they get me coming and going.

    However...
    Working out a systematic plan hard for ...
    40-50, maybe 60 years...
    Some of us can afford to retire, which is similar, the trick is to put aside enough throughout the years,
    then the only other thing is we have to hope fortune smiles on us and we actually make it that far.
     
    Last edited: Jun 1, 2009
  3. TheArchitect

    TheArchitect LawnSite Member
    Posts: 18

    Well if we want to look at it that way :p

    Assuming our time is worth say... $20 an hour.
    How much "Time" would we need to invest into our company and how would you invest it?

    Cause essentially, we are buying stocks into a company that we just happen to operate. So how much Money/Time a month do we need to put in and for how long?

    Does it all come down to money? well i suppose it does, but what is a good way to spend our money/time. Also if you dont aim for the stars you cant hit the moon :p

    TA
     
  4. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,317

    You sound like a liberal and what they think of small business somehow we just sit back and rake in the money and make others do all the work. Might work great on an internet business but it doesn't work so well on service business with lower margins and massive equipment and material expenditures.

    I think you feel this is an easy enough trade to learn and therefore why not have others do it for you the problem is if they can run it for you why not run it for them selves. The other issue you will find most clients seem to want a relationship of sorts with the company they hire for their lawn care they do not get that from employees and an invisible boss.

    So how big would you need to be well we are close to 200 accounts making a quarter million plus this season. We have 2 owners each runs a crew and we share the business decisions. Now if we opted to hire 2 more to run the crews and someone to manage the company and acquire more work id say perhaps id make 10 k a year atm not exactly the income I want. Hope that helps you with the numbers your going to need to make it work.
     
  5. TheArchitect

    TheArchitect LawnSite Member
    Posts: 18

    Kelly, why are you attacking? It can be done, it has be done and it will most likely will be done again.

    You dont go in to the business to break your back, you go into business to make money, now if I can leave the maintenance side of my company on "autopilot" and take myself and break in to say the installation market. Would that not be wise in most cases?

    Also just for the record, every time I can vote I do vote and I place my vote with the right wing. Maybe I dream big, but someone has to, my ex-boss down at the coast has a foreman running 3 maintenance crews and he doesnt touch it anymore. He builds house/does installs, so thats why this idea popped into my head.

    TA
     
  6. kingtut

    kingtut LawnSite Member
    Posts: 7

    hi im from oregon,

    im trying to start my own landscaping buisness.im not on your guyses level yet.but hope to be.im currently in the supply buying,an licensing stages.i have some expierience as an employee,an have been consuming books an shows on the subject.i want to offer everything from landscape maintenance,to construction an power washing.design,an everything possible.i would love to learn from you vets.im hoping for advise.im willing to learn.
     
  7. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    there is no such thing is sitting back. even though a company CAN run it self. it has to be looked after.

    McDonalds is a GREAT co. to study. they have made millions simply from the labor of teenagers, and as we all know teenagers are NOT very good employees.

    if you think you can sit back and NOT do anything go talk to Willie Nelson.

    also there are ways to cripple your comptishion. however you have to ask yourself.

    would I be willing to take 20% from this or that job ?

    In fact were doing some reverse logic right now.

    employees take around 20%, so why not. simply give it to a comepter. take the 20% keep them busy.
     
  8. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I care for upscale residential clients most are millionaires which is not saying much theses days none the less. I even care for a Billionaire, he is up and out the door by 6:00 every morning. He started off with nothing and is not involved in computers or the Internet. He has built his company from the ground up. I have worked for him for 15 years and I can count the times on one hand I have seen him at home during the day.

    Unless you retire and hire others to do the work there is no such thing as "sitting back" You can do less physical work and you can take more and longer vacations but only if you have the business systemized so it is not reliant on you for day to day operations.

    The thing is entrepreneurs that build great businesses think differently, they see the world differently. That is a rare commodity and tough to hire if you expect your business to keep growing. Businesses are never stagnant they are getting better or getting worse.
     
  9. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    The stumbling block for most guys is....we just like doing the actual work too much. Most of us got into this so we could work outside and mow, landscape, whatever. The thought of sitting in an office or not being involved at all is not something that crossed many of our minds.
     
  10. CHRIS MELROSE

    CHRIS MELROSE LawnSite Member
    from MIDWEST
    Posts: 170

    Its not gonna happen. The problem is when you do find somebody sharp enough to run "your" business to "your" standards so to allow you to "sit back" that person will soon be down the road and running "their own" business.
     

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