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buying a business

Discussion in 'Starting a Lawn Care Business' started by jeffwpayne, Aug 20, 2013.

  1. bp lawn

    bp lawn LawnSite Member
    Posts: 99

    I would talk him down on the price. By your #'s it doesn't really make a lot of sense. I see what you are saying about the 10 yards, but he is not selling that much income. I'd go for $3500 you have and kick in the first month ($700). That's with a contract for a year. He gets $200 for financing and you start making money quicker.
     
  2. jeffwpayne

    jeffwpayne LawnSite Member
    Posts: 17

    Yeah I don't see him going much lower. He wanted $12,500 truck included which is too much, I told him my situation and he's a real nice guy wanting to help. He came up with the deal . The biggest thing is he's opening a real estate office which (could) lead to lots of business. I'm really on the fence with this deal just stuck on deciding if its worth it in the long run. There is a price to pay when you finance just need to decied if its worth it.
     
  3. Vanderhoff Landscaping

    Vanderhoff Landscaping LawnSite Senior Member
    Posts: 383

    I would just buy the equipment. Screw the accounts. It may sound good verbally or on paper but without them being contracted they are basically worthless. Say you pay "X" amount of $ for the accounts and then they turn around and hire someone else to cut their grass after you make the transaction. Then what? You not only have lost the $$ you paid for them but you also lose the $$ you would have made by servicing them. Personally I would not do it!
     
  4. IES

    IES LawnSite Senior Member
    Posts: 296

    I'm guessing that the guy financing his equipment would continue to pay him to cut or loose the rest of his money in payments
     
  5. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    $70 a month service per house.

    Without knowing the property size or work involved at $35 a week minimum that comes to $140 to $175 a month 4/5 services. Losing money before your pay him and drive away with his stuff loaded on the trailer.

    Then if he expects more then edge, mow, blow, at that money you will never break even.

    If you have a pick up you can skip on a trailer for a while.

    $300 Harbor Freight trailer.

    If you already own a mower you can get by with what you own for 10 properties. $1,000 box 42" store mower.

    $300 20" push mower.

    $200 line trimmer.

    $200 stick edger.

    $2,000 you are equipped to do basic lawn service.

    This guy wants $6,000.

    If I had $4,000 dollars to pay for advertising when I started out my business would of really grown.

    He has made a good deal for himself not for you. A one sided deal is not a fair deal.
     
  6. Killian

    Killian LawnSite Member
    Posts: 12

    If you say the equipment is worth approx. $4,000 and the price for the lawn services isn't too low for your area you should know having done this before.
    I know you are in fla so its different there but I'd say you are getting rid of a boat (expense) for a possible money making business, how can that be bad?
    I don't think you can count on his real estate business getting you more accounts but you are in the position to get your own. if all this is in writing maybe try to extend his commitment to you for the lawn services or lower the monthly payment so you have more cash left over every month. Do it.
     
  7. jeffwpayne

    jeffwpayne LawnSite Member
    Posts: 17

    Thanks everyone for the replies, after looking at the lawns and really looking at the pros/cons iv decide to pass. My father offered me to use his ferris 44" to start my business. I have the option to buy it or buy my own once I get enough of my own accounts, I will most likely buy a stander as iv never used one but always wanted one. All I need to do is buy a trailer. I feel I can get the lawns I want and charge what I feel my work and time is worth from the start. I'm greatful to have the father I have. He's done alot and I mean alot for me. With him being a disabled veteran I need to make this successful so I can buy him toys. Lol thanks guys
     
  8. JNyz

    JNyz LawnSite Bronze Member
    Posts: 1,084

    Jeff, do you have good credit? If you do you can finance most of the equipment with Sheffield Finance. Just ask your local mower shop.
     
  9. jeffwpayne

    jeffwpayne LawnSite Member
    Posts: 17

    I have decent credit, iv financed $8,600 for a dang ATV, paid it back within 5 years never missed a payment. Financed a street bike $4200, paid off in 6 month, got a personal credit card, making payments still. Also couple other good marks but the 2 bad marks $1,000 collection I have outweigh the good I guess. I hate dealing with having to get a loan cause they always give me a hard time unless its some stupid toy I want to buy. Tried to get a house, nope. Tried to get a newer truck, nope, tried to get a boat to see if I could yuppies, your approved. I said no thanks and walked out. Lol
     
  10. jeffwpayne

    jeffwpayne LawnSite Member
    Posts: 17

    The lawns here are 20-30 min jobs to complete. When I mowed years ago fuel was cheaper and I was charging for a basic cut $75 a month yearly contract. Now I want to charge $90 a month. Some a little less some a little more all depends of course. Iv heard of people charging lowest $55 month .Up to $100month, big difference. It all comes down to my cost and overhead to do the job. All I need is a trailer and my fathers mower, I have my backpack blower, hedge trimmer, and weedeater still.
     

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