Commerical Accounts

Discussion in 'Lawn Mowing' started by Dougs Lawn Care, Jan 21, 2006.

  1. Dougs Lawn Care

    Dougs Lawn Care LawnSite Member
    from Livonia
    Posts: 3

    Hey Guys hows it going?

    I have a question me and my friend just got into the business a couple years ago and this year were looking to expand and it might sound stupid because were only 17 but we were looking to get some small commercial accounts with some of the dentist offices around here. Do you usually need insurance to do these kinds of places because every place we have called said you gotta wait a year till you can get it. So do u just recommend staying with residential customers.

    Thanks Doug
     
  2. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Typically you need (the business) to be insured and you have to have worker's comp. insurance. Wait a couple more years then go after some smaller commercial accounts.
     
  3. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Personally I beg to differ with you. I for one do not see a reason they should not get insurance and try to get any size commercial accounts that they can handle.
    There is a draw back that you will find. Managers and owners will discriminate against you because of your age, however you will still learn the ropes of the bidding process of commercial accounts.
    This bidding process usually takes an even mature LCO a few years to master. By bidding now you will not only learn from your mistakes that you can easily recover from, being so young, but it will give you different aspects of the trade also.
    Beware that when you jump into commercial accounts that there is much more that you have to offer to successfully land an account. Pesticide applications are one of these. I would recommend you get a business plan laid out on what you actually want and where you want to go. I.e If you cant provide the service you will sub to x and y.

    Don't ever listen to any one tell you to wait. There is never an more opportune time than now for your business. Just know your limit on the amount of work you can handle and still provide a superior service.
     
  4. rbriggs

    rbriggs LawnSite Member
    Posts: 106

    It sounds as though they can't get insurance because of their age. Not sure at what age the insurance companies require you to be, but I would guess it's age 18. That being said, i'd stick with the residential stuff. There is plenty of it available so that you can build your business. Insurance isn't cheap and workers comp is even more expensive.
    As far as being discriminated against because of your age.......pretend that you are merely an employee of your business. Nobody needs to know that you are the owner. Now and again, i will find myself going out with my crews for a day or two. When I do, I don't necessarily let on that I am the owner of the company. And people don't usually ask.
    My 2 cents.
     
  5. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Well I beg to differ with you, your telling me and us that you don't need any type of insurance for this line of work let alone commercial accounts?:confused: WOW and all this time we all must have been fooled in thinking so. The first thing any business is to be insured! And I personally don't think a 17yr old has the maturity level or experience to bid commercial jobs. But don't listen to me, go ahead jump right into it bid jobs so you loose hundred's of dollars a week. Buy a ton of equipment and make hundred's of dollars a month in payments. Yeah that sounds like fun.
     
  6. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    THEY ARE ONLY 17 YEARS OLD! You pretty much can't do much until the age of 18.
     
  7. Dougs Lawn Care

    Dougs Lawn Care LawnSite Member
    from Livonia
    Posts: 3

    So we should then just stick to residental accounts for now till we get older? And by the way I do have the maturity level maybe not to do comerical accounts to do other jobs.
     
  8. Dougs Lawn Care

    Dougs Lawn Care LawnSite Member
    from Livonia
    Posts: 3

    So you're saying just to stick with residential accounts for now till we get older? And by the way I do have the maturity level maybe not to do commercial but to do other things like residential.
     
  9. Mudmower

    Mudmower LawnSite Member
    Posts: 102

    Congrats Doug on having the fore site to be thinking about the future, it is very important. That said, you WILL NOT get commercials without insurance (despite what sildoc says).

    You have to understand the insurance in the eyes of the person who's property you are working on. It is not for your protection, it is for them. If you mow and throw a rock and hit someone on their property, both get drug into court. However, the property owners insurance will most likely be secondary. The lawyers will drain down your insurance then start on the property owner. They hope by that time all parties will be worn down and will settle for a little of nothing from the property owner.

    In my experience, commercials use our (lawn guys) insurance to cover themselves. It is a defensive posture that cost them nothing if something catastrophic happens. Stop by and talk to an independent insurance rep sometime, they can explain things in terms and situations you can understand if you have half a brain and may look forward to doing business with you next year!!!!!

    Jim
     

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