Can I Make A Run At This?

Discussion in 'Starting a Lawn Care Business' started by FearThisDeere, Mar 16, 2006.

  1. FearThisDeere

    FearThisDeere LawnSite Bronze Member
    Posts: 1,168

    OK, here are the basics. I am seventeen. I OWN all of my equipment as in it is all paid off :)cool2: ). I am looking got get into doing some residentials to make some money. My expenses will be gas, maintenance, etc... I will need to buy a few odd and end pieces of equipment, but I am going to need to buy a second beater truck. That will be my biggest expense for equipment. I live on a farm and have worked 7 days a week 365 days a year in all weather, so I know what work means. I have also worked for my Uncle mowing lawns commercially. Basically, all I need to know is would a be able to make a little profit doing this over the summer? I know of 5 lawns that I can do already and have not started to advertise yet. I would like to get around 25 or so total. I think to re-coupe all of my expenses for the entire summer I need to come up with about $3000 to make a profit. Does this seem achievable? What about insurance? How does that work? Any info or help will be greatly appreciated!
     
  2. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93

    I too am new to this industry and am under the impression that anything is possible if it is important to you. You certainly have the work ethic so I do not see why you could not meet your goals.

    As far as insurance you can contact an agent, there are many, and tell them you want 1mil General Libility. I would have your employees be 1099 rather than covering them on Workmens Comp. Before anyone jumps on me about having them be 1099 and the rules to actually being 1099 you have to be creative. For your auto coverage I would leave under your personal insurance policy. You are young but it will be much much cheaper. If the trucks are in your companies name or some other companies name lease them to yourself and get them covered that way.
     
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Best advise I can give you is see an attorney.
    If your using a personal vehicle for business use and only have personal coverage on it your NOT covered. no big deal for a fender bender but someone gets hurt and the investigator will be all over you
     
  4. FearThisDeere

    FearThisDeere LawnSite Bronze Member
    Posts: 1,168

    Thanks for the replies. The truck will be used only for lawn care and on my farm. It will have farm plate (a version of commercial), so the insurance should be fairly cheap. I was thinking more of the insurance for lawn care than the truck.
     
  5. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93

    1 million Gen Liability with a 2 mil aggregate costs me just under 2k annualy for this business. I have not added equipment floaters yet because I keep switching what I want and have not picked it up yet, however, should not be expensive at all.
     
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Your equipment is called inland marine coverage and is the most expensive part of the policy
     
  7. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93

    Not sure if my insurance company is different but I can insure my vehicles under my personal policy and still use them for business. It does raise the rate but not nearly at what it is under a commercial plan.
     
  8. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93

    I know what it will be called under my coverage but seeing that I have a JD3400, CAT 247B, 2 GN trailers, etc... already covered for nearly nothing (other company) I cannot believe it will cost much. It might be that my setup is different but I will soon find out. I hope it is not much though cause I am not expecting it to be.
     
  9. down size

    down size LawnSite Member
    from indiana
    Posts: 78

    My inland marine is for 45000.00 cost me 552.00 a year (state farm) I would read your policy very closely on your vehicle. You will probable find once you are for hire your policy will not cover you. I would not by no means take your agents or anybody elses word for it. All it takes is one mistake and you'll pay for it the rest of your life.
     
  10. down size

    down size LawnSite Member
    from indiana
    Posts: 78

    Fear this deere I'm not sure but I think the farm plates are for farm use only. You should contact the BMV or the state police to be sure.
     

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