buying a existing buisness

Discussion in 'Lawn Mowing' started by Two Rivers, Apr 6, 2008.

  1. Two Rivers

    Two Rivers LawnSite Member
    from East TN
    Posts: 48

    Whats the best way to do this?? And not lose all the customers you just bought!!

    Details:: 18 yards all 10-15 yr old customers. no contracts. $20,000 profit. $15,000 asking price payable over 3 yrs. $818 billable per week, 25hrs of work. Ive gone to church with this famaly friend all my life.

    J.A.G LAWNCARE LawnSite Senior Member
    Posts: 931

    How do you come up with $20,000 profit with $ 818 per week
  3. deereequipment

    deereequipment LawnSite Senior Member
    Posts: 370

    No contracts???? Even if there were, the contracts or current agreements are with him.
    Someone new comes in, and if they don't like you just a little bit, what's protecting you from losing one or two or all of them?

    Then, if you lose any, do you still have to pay your friend?

    I'd pay for equipment, I don't know that I would pay for the work. If I was buying a company and it's name, I'd consider that, but not what you explained.

    Good Luck.
  4. skeet

    skeet LawnSite Member
    Posts: 166

    If you are not buying any of his equipment, and even if you are, the customers are free market. Why pay him for free customers? He's not selling a franchise.
  5. bigtex

    bigtex LawnSite Member
    from ma
    Posts: 151

    not neccesarry! RIGHT NOW is the best time of the year for developing biz. if you really hustle-get a sign on your truck-put an ad in the local newspaper-flyers in convienent stores, etc. let EVERYONE you know your in business for doing lawn maintenance. you can pick up that many lawns in the next month or so. now i don't know what your demographics are but i'd try this way and say yourself 12-13 THOUSAND DOLLARS. also, if your starting out (and it sounds like you are-you'll need a part time job for the time being to make sure you have money coming in regularly.
    good luck
  6. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,204

    Since this guy had those customers that long they are probably expecting a great deal of personal hands on. I would bet you would lose a lot of them over time. They would keep says ..."well joe didn't charge me extra".
  7. WildLake

    WildLake LawnSite Senior Member
    Posts: 368

    Ive never heard of paying more than the price of a couple weeks gross, plus equipment. For a fraction of that money you could pick up your own properties. Bad deal.
  8. dodgeplower

    dodgeplower LawnSite Member
    Posts: 36

    I would not pay more than 2 weeks worth of the gross that he is now recieving
  9. Ed Ryder

    Ed Ryder LawnSite Senior Member
    Posts: 541

    Like some of these guys said, it's not a good deal.

    You need to weigh the advantages and disadvantages of each.

    On the one hand, you could pay top dollar and get an established micro business that MIGHT retain all of its customers. On the other hand, you could spend $500 on smart advertising and have yourself a $40,000 or $50,000 operation within a month or so.

    Which makes the most sense?
  10. Two Rivers

    Two Rivers LawnSite Member
    from East TN
    Posts: 48

    Ive been in buisness since 2005. If just never been involved with buying a business before. so everybody agrees that 2-3 weeks gross plus equipment.
    How do you make that transion smoothly with a new customer.. I got the figures he gave me.. Im going to look at his paper work and the jobs tomorrow..

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