By the numbers...

Discussion in 'Starting a Lawn Care Business' started by Icemanku, Jun 8, 2007.

  1. Icemanku

    Icemanku LawnSite Member
    Posts: 190

    I'm in the process of buying a business from my old neighbor. I currently own a tshirt website gamedaytshirt.com which keeps me from the beginning August to the end of March. Pretty much the entire off season of mowing. I'm looking to get a business started and grow it into something quite large.

    Please take a look at these numbers and tell me what you think. These numbers are based on three other companies owners that I'm friends with.

    Equipment:
    2 36" Mowers- $2000
    1 48" Mower- $2500
    Trimmers/blowers- $400
    Trailer- $1000
    16 Accounts- $1600
    Total- $7500

    Break Even Point:
    16 accounts at $35 = $1680 one month income after tax= 4.5 months to break even
    20 = $2128 = 3.5
    25 = $2660 = 2.8
    30 = $3192 = 2.3
    40 = $4256 = 1.7

    Ideal Income Scenarios:
    40 accounts at $35 on average (factoring operational costs gas/maintenance) = $34,048 after tax
    50 = $42,560
    60 = $51,072
    70 with one employee at $12 and hour, 2.5 lawns per hour = $48,832
    80 = $55,808
    90 = $62,784
    100 = $69,760
    120 = $83,712

    I've averaged $35 dollars an hour because I realize that some accounts will be commercial.

    My concern are how can I add more business in a short amount of time?

    Let me know what you guys think about these numbers.
     
  2. Trimmer Man007

    Trimmer Man007 LawnSite Member
    Posts: 22

    I think you could possibly get a better price for the trimmers/blowers, but I guess that seems reasonable.
     
  3. Icemanku

    Icemanku LawnSite Member
    Posts: 190

    I think I'm buying two blowers and two trimmers.
     
  4. Trimmer Man007

    Trimmer Man007 LawnSite Member
    Posts: 22

    What model and brand are they? Overall, just in my opinion, the asking price for everything isn't bad, except for the 16 accounts, I wouldn't pay that much a piece.
     
  5. Icemanku

    Icemanku LawnSite Member
    Posts: 190

    If the average account size is roughly $35 how much do you suggest I buy the 16 accounts for?
     
  6. Trimmer Man007

    Trimmer Man007 LawnSite Member
    Posts: 22

    I can't give you a good number, but based on where you live I would assume that like in Colorado you only have a 6-7 month season really, and its about 1/3 of the way through.
     
  7. Icemanku

    Icemanku LawnSite Member
    Posts: 190

    I've been told that the season here starts up the last week in March and ends the first week of December. So about 8 months.

    Any ideas on how much I should ask for the 16 accounts?
     
  8. Trimmer Man007

    Trimmer Man007 LawnSite Member
    Posts: 22

    Well unless Kansas City is that much different from Kirkwood Missouri and Denver, I don't really think mowing past the end of October is reasonable. But hey, thats just me.
     
  9. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    I'd go with the 10% figure for the accounts.

    23 cuts(what I got out of your post) times $35.00 x 16 accounts = $12,880

    Multiplied by 10% is $1,280 for the accounts.

    Beware that just because you buy the accounts does not mean you will keep them.

    Also what kind of mowers? How many hours?
     

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