Business Problems

Discussion in 'Business Operations' started by celawncare1, Jan 12, 2006.

  1. celawncare1

    celawncare1 LawnSite Member
    Posts: 15

    Here is the problem that I am having!
    I started my biz 2 years ago in Apr.04, kind of late for this area. I ended up doing 6500 for the year. I still worked full time so almost all the business money stayed in the business. Last year in Jan. I quit my job to pour all of my energy into the biz. I am totaling 22500 for the year, 350% growth but not enough. My problem is that all of the biz money is being spent for evryday personal expenses. How do I move to a point where the biz money stays in the biz, with me drawing a salary? I realize now that I prob shouldn't have quit my job until I was really going, but I am full in now and refuse to look back, or go back....any advice? Thanks in advance!
    Also for the experienced owners does everyone go through this in the beginning? :confused:
     
  2. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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    Hi celawncare1,

    I think this is just a stage of growth. As you grow and make more money you will be able to draw a salary. Until that time, keep promoting your business and keep working on ways to grow. I know you can do it.

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  3. celawncare1

    celawncare1 LawnSite Member
    Posts: 15


    I hope this is the problem any other opinions?
     
  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I did'nt go through that. You need more work period, hell I pay my guys more than that. Try other successful maint co's see if they want to subcontract some work to you or if they have any pita's they are dumping. Check with install companies that don't have maintenance companies see if they will refer you. Possibly offer a free month of service for their completed jobs. They put it in the contract for new work and you have a first dibbs opportunity for new clients. Get more work, and get on a salary even if its small, also get a good tax guy you should be do a good return if you paid any. Get a payroll service if its over your head they are cheap and keep you legal.
     
  5. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I will go full-time this spring. I will draw a salary. I will set it up on my online banking system where the money is automatically transferred from my business checking to personal checking. A percentage will go into my personal savings account for taxes. I basically figured what I needed to surive and not much more. The salary will be drawn for a fiscal year (not calendar) from April 1 to April 1. Over winter I will figure, based on sales and expenses, what kind of raise I will give myself.
     
  6. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    If Az Gardener didn't go through a growing process then he either bought an exsisting very sucessful business, or is the only one in the country and the history of the green industry to have ever not and is a pure miracle in the green industry. ;)

    YES, every sucessful company goes through a growing process, and should year after year even. You are right you should have never quit your job with only $6500 in prior year revenues, but you did so now you have to get more accts. Plain and simple. You need to at least triple the revenue you currently have just to be able to pay the company bills and still be able to pay yourself a salary of only $35K-$40 even.
     
  7. ooo

    ooo LawnSite Member
    Posts: 235

    I dont know if you have any type of "Penny Saver" weekly classified type thing that comes in the mail every week, but that helped me out. I have always worked for someone else and decided to start on my own last year. From the Penny Saver alone and getting referals from those customers, I ended up having 33 weekly cuts and probably 20 other people I did atleast 1 job for(several were people talking to other people(do a good job and people talk)). I took in about 65k+, but after buying different equipment almost every other week, I didnt actually make much. I would think down in GA you have a longer work season also. I also tried flyers but they didnt do much of anything. This year Im gonna try a few 1000 Direct Mail flyers through the Post Office. A little pricey, but I think it'll be nice to target neighborhoods and people are more likely to look at it more so than sticking some flyer on the mailbox or door. Im not positive its much better, but have to try it out.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Not to second guess you, but you should have had more money put away probably before going full time. Regardless, get as much work lined up as possible. And most importantly, write up a BUSINESS PLAN. Make sure it is down on paper and not just "in your head".
     
  9. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    agreed, no one ever plans to fail, they fail to plan...but you're here now, so get out and sell, sell, sell your butt off. Do what others won't. If they will stick flyers on doors, you knock on doors, if they won't do small houses, you become the small house specialist. etc. etc. Be nimble and creative or go back to your old job. If your business does not pay for itself, then it fails and sucks you down with it.
     
  10. get rich

    get rich LawnSite Member
    Posts: 195

    I have had the same problem the last year. Except i had a family of four others to support on a little less. Last year my old boss forced my hand in quiting and doing this full time. I'll bet my right arm i'll double my income of last year in the year to come. I tried fliers with a little success, but was bringing in ton's of work through word of mouth, being polite and doing just about any small jobs i could. I'm positive with a off season to work with i'll have a lot of bidding to do. I got out the phone book and called just about every hotel and restraunt in town to see if i could put in a bid. A lot of them said yes, problem was most were to big for one guy to handle. So this year with a plan of attack and more tools, i'm sure to land more of the work i quote. But the first year or two for most is a struggle, that i'm sure of.
     

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