breaking through

Discussion in 'Lawn Mowing' started by heather, Jun 29, 2004.

  1. heather

    heather LawnSite Member
    Posts: 59

    It seems like the more work I take on,the more my overhead (wages,equipment) goes up . Our company has seem to have stalled with 2 crews . I can't raise prices because the area average is already lower than mine. I've started taking on irragation work to help bost the bottom line. I think if I could just land a big comercial contract I could break through and run 2 full crews without me being one of the crew. Don't get me wrong I enjoy working,I just seem to be glued to the cell phone lining up work and talking to clients. That means the setup I run suffers with late nights and always behind. Is this a common problem????
     
  2. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    I suspect it is a common problem. My impression is that a lot of operators find the transition you're going through to be pretty daunting.

    When I get to where you are, I expect to have to take a hit on net revenues because I'll have to hire someone to do the work I'll have been doing. I'll have to give that up to expand further. Just seems to be the nature of the beast.

    If it's any consolation, many of us find that darned telephone to be our best friend, but a nagging one. It strikes me that you're on the right track. In that situation, I'd expect that I'd see little gain in net revenues for the balance of the year, but the following year? MUCH better.
     
  3. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    YES,,,,just remember that it isnt just our industry!

    ALL industrys today are working twice as hard for half the money as we did 10 to 20 years ago!

    being self employed does not make an individual immune to the competition created within america,,,,,,the things that allowed us to go in bidness have allowed others to do the same! oppotunity creates massive competition!

    always remember that big commercial job that you get,,,,,IF your making money on it today somebody will want it from you tomorrow!

    IF you understand this principle and you dont get depressed,,,,,,you will d what your doing,,,,,continue to find NEW streams that have been untapped to create cash flow as other flows disapear!
     
  4. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

     
  5. Mikes Lawn Landscape

    Mikes Lawn Landscape LawnSite Senior Member
    from Texas
    Posts: 458

    You have hit the wall !

    Every business does it, what you have to decide is at what point are you willing to give up profit for expansion ? Let me explain witout the volume you dont need an extra crew but without the extra crew and equipment you cant do the volume. So at some point you have to say OK I'm buying the equipment and hiring the crew and I will concentrate on growing the business but when you do that your NET PROFIT will decrease until you add substantial enough volume to increase your net. Based on your prior #'s you should know what volume will replace the lost net profit and forecast how long it will take you to get there.

    Good Luck.

    By the way Its raining thats why I can post in the middle of tha day
     
  6. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Mike, same here with the rain. I simply don't have a plan for this. I understand there is a risk of this in April and October, but its not supposed to be this way headed into the Independence Day weekend.

    Unreal!

    It rained Friday - Saturday - Sunday - Monday and now it's raining again on Tuesday!!!!!

    After you send your employees home for rain, do you make them call back in later on to see if they are needed to work?

    It seems like a schitty thing to do, but business is business.

    Later,
    DFW Area Landscaper
     
  7. soonernation

    soonernation LawnSite Member
    from Okc OK
    Posts: 63

    It's raining here on Oklahoma too. This will put me behind about 15 yards and it's supposed to rain tommorow. I thought we were headed for a bad drought in the middle of may so my employees and I did a funny little rain dance in the middle of one our dryer yards. I'm not superstitious at all but it has rained 7 out of 14 days in June. DFW, I am feeling your pain. It seems like every time I add a new account, another stress pimple appears on my sweaty forehead. Persaverance builds patience, patience builds character and character is who you are. You sound like you have a good mind and I think you'll be very successful because of situations like this.
     

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