Before I Jump Back In?

Discussion in 'Starting a Lawn Care Business' started by bloomlandscapeanddesign, Feb 2, 2008.

  1. bloomlandscapeanddesign

    bloomlandscapeanddesign LawnSite Member
    from 07039
    Posts: 9

    Hello all, I need some hard core $ advice and estimations before I jump back into the maintenece business. I was in in the early 90's sold and got into real estate. Personally very frustrated with the real estate business and have already started back into landscaping. I have a f450 dump, enclosed trailor, walker ect... 30 accounts as of now, since sept. 2007. Before the season gets off to full swing I want to hear from some of you:

    I need to know if I will be making money or just trading one headache for another. I am very satisifed with the money I make in real estate about 150k net. I would be happier making 150k doing landscaping though. So i need to know is that realistic.???

    The way I break it down:
    me and a helper on one truck equals 100 accounts per month with some side work.


    income:
    average house per month $130 x 100 + 13000.
    at least $2000 per month side work.
    total gross per month $15k

    expense:
    $10 per house gas = $1300
    machine repair/material = $500 per month
    helper = $2500
    truck and equip. finance = $1000
    insurance and business insurance necessary = $300
    advertising $300
    total estimate at $6k

    LEAVING $9,000 NET BEFORE TAX AND SALARY.

    I will an addittional 100 home route and pay an additional helper at 3k to be the foreman and that truck #2 will ne me before tax and salary: $6,000.

    TRUCK #1 = $9,000
    TRUCK #2 = $6,000

    AM I MAKING SENSE AND ARE MY NUMBERS IN THE BALLPARK?

    IF SO HERE I COME BACK TO DOING WHAT I LOVE!! AND JANUARY 1-MARCH 1 FLORIDA LOOKS BETTER AND BETTER! HAHA

    Thanks in advance for your comments! I NEED SOME ENCOURAGEMENT!:weightlifter:
     
  2. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Most of us wouldn't touch this with a 10 ' pole.......

    have a nice day !
     
  3. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    I'm not sure how taxes work in the real estate industry but it will eat up a good portion in this biz. Since you'll be your own boss you have to pay all of your social security (I believe its 16% or so) plus since you have employees you are suppose to pay 1/2 of theirs. But this is really the least of your problems as how do you plan on gaining 200 accounts. Gaining good accounts is the hardest part. This industry is flooded with guys, some legit and some not, and it is becoming increasingly hard to compete with the non legit guys as there pricing is usually way too low. I would think 75-100 accounts may be obtainable by the end of the season but not at the start. Maybe by the middle to end of the 2nd year 200 or so. Best of luck in whatever you decide.
     
  4. bloomlandscapeanddesign

    bloomlandscapeanddesign LawnSite Member
    from 07039
    Posts: 9

    I Plan To 75 This Year At End And 150 Next Year At The End. I Have A Few Locals Selling 20-50 As Well. Will Only Pay 1.5 Months Maintenece. So Does The Basic Structure Make Sense?
     
  5. bloomlandscapeanddesign

    bloomlandscapeanddesign LawnSite Member
    from 07039
    Posts: 9

    You know actually, the reason I am on this site now, is to get info from guys like you. but thanks for the help... real nice guy!
     
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    It all looks feasable to me. The hard part will be getting the customers, but once your going should be ok.
     
  7. bloomlandscapeanddesign

    bloomlandscapeanddesign LawnSite Member
    from 07039
    Posts: 9

    thanks...I appreciate you reading.
     
  8. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,311

    Probability very low of making $150K net......getting workers will be one big problem but that is just the start.
     
  9. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    sometimes you have to what you dont love to get what you do love. If you love this then you make it happen.......... If it just something to get you through what seems to be a bad situation right now, then your not cut for this. One drought and the loss of the best cutomer and you will see why!
    God bless and life is too short to do something you dont love. we are hear about 80 years why not do something you love an are passsionate about? In a blink it is over, you wake up and you ask yourself what have I done? or you wake up and say I have lived a great life and prepared to meet the owner of all things......
    does that motivate you it does me!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
     
  10. barefeetny

    barefeetny LawnSite Senior Member
    Posts: 533

    The way I break it down:
    me and a helper on one truck equals 100 accounts per month with some side work.

    not to say you couldn't pick up 70 accounts before the season swing into gear, but finding 70 good ones i think will be difficult.... upselling 2000 dollars worth of sidework is possible, but i think your estimate of 500 material/repair might be low... is the 500 dollars also matireal for the side jobs(installs?) or is that the profit you plan on clearing? ....I also don't see taxes and SS for you or your employee in your expenses.


    If you can find 170 customers and reliable employees it is quite possible to gross 150.... Me i left a job where i was making big money because i wanted to see my kids, go fishing once in a while, maybe canoe the river on the drizzly days....

    Good luck with your endevor

    Nate

    income:
    average house per month $130 x 100 + 13000.
    at least $2000 per month side work.
    total gross per month $15k

    expense:
    $10 per house gas = $1300
    machine repair/material = $500 per month
    helper = $2500
    truck and equip. finance = $1000
    insurance and business insurance necessary = $300
    advertising $300
    total estimate at $6k

    LEAVING $9,000 NET BEFORE TAX AND SALARY.
     

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