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buying accounts from guy with cancer

Discussion in 'Starting a Lawn Care Business' started by johnsonslawnmanagement, Sep 3, 2007.

  1. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Posts: 909

    i have a variety of sizes, from 1/4 acre to 5 acres. All within close vacinity. and the part about one man, i have a good system and dont waste much time.
  2. Clean Lawn

    Clean Lawn LawnSite Member
    Posts: 17

    Sounds reasonable. It never hurts to ask.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    That sounds good to me...I'm not sure why the guy would keep the equipment and sign a non-compete agreement if he is terminally ill. Not to sound insensitive but why not just sell off everything and be done with it?
  4. BeautifulBlooms

    BeautifulBlooms LawnSite Senior Member
    Posts: 613

    Maybe tell him you'll give him a percentage of the accounts who sign a yearly contract with you
  5. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Take the chance, but know what you are getting as far as the past and projected income. Its your decision and your money. I would have a clause that would protect me from customers dropping me. With most solo operated companies the clients forms a bond and a relationship with the owner. You might get dropped because they personally don't like you. It happens more than often. Thats why these guys are always screaming get a contract.

    Unfortunately you will lose some accounts over the next couple of years but if you are looking to grow your business then it wouldn't be a bad opportunity depending on the terms and the financial.
    Here's some tips
    1. Make sure you have written agreement with the guy. Make sure you have a clause protecting you in case of drops
    2. Walk each property front and back yard with the current owner of business. Try to meet each homeowner. Take notes
    3. Inform the homeowners that you are helping him out. 3a Keep his current billing information, numbers etc
    4. Be able to understand the level and scope of work thats provided to each property.
    5. In you can slowly implement the homes I recommend doing it in thirds
    6. Send letter out introducing yourself and inform them that there service price will remain the same. Try to make it seamless for them.

    In addition its the best time of the year to purchase accounts. The grass isn't growing like crazy so you have have time to catch up if you have equipment failures etc. Oh I almost forgot, make sure you have back up equipment just in case of failures. I would add two extra bodies just so you don't get behind on the work. Customers wont give you any second chances.

    Whats your address and billing information? I'll be sending you my consultation fee its $450 per hour with a two min.
  6. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Posts: 867

    Those accounts are worth about 1 month's gross imo. If they all signed a service agreement. I guarantee though that there will be a lot of accounts out of those 80-100 that you don't want or that won't want you. Figure on losing 25% to be safe. I bet you'd end up with 60-75 accounts out of the deal, and I'm assuming they are small if he can knock them out in 4 days, at a $30/cut average I would be hard pressed to pay more than $10k, with a signed service agreement.
  7. Clean Lawn

    Clean Lawn LawnSite Member
    Posts: 17

    If you want to send me an e-mail at cleanlawn01@yahoo.com I can send some more info to you regarding buying accounts. I am currently talking with 2 business regarding buying their accounts and I know you want to make sure your covered when it comes down to everything. But you are getting some great advice here too.

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