Continue or quit?

Discussion in 'Business Operations' started by rescuedlawn, Jan 19, 2014.

  1. rescuedlawn

    rescuedlawn LawnSite Member
    Posts: 82

    It is a good job and will last. I just want to get out and had a goal of about 100 accounts within 5years. Not sure if that is a realistic goal.
     
  2. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    What is your equipment list and what is exactly wrong with them? What are your mechanical skills when it comes to working on them?
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  3. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    I'm thinking 70k wasn't enough for your bills, so you started this for extra money. If so, step back rethink your plan that doesn't envolve taking on new debt. It takes a lot of effort to get to 70k a year in any field and I'm thinking you're not giving that up to be a grass cutter. Buy a used truck and repair the rest.
     
  4. rescuedlawn

    rescuedlawn LawnSite Member
    Posts: 82

    At the moment I have nothing to pull a trailer with. As far as everything else, I have a 50in walk behind which is being repaired by me. It needs a deck welded and a bracket repaired. The trailer is a used 5x10 with out a gate. All husqvarna handhelds.

    Im looking at a $6k truck, a new trailer and a ztr. My tax returns will buy everything except the truck.
     
  5. rescuedlawn

    rescuedlawn LawnSite Member
    Posts: 82

    Extra income is always good and I can use it. I wanted the side job to pay off my debt to the point where I do not need $70k year so I can stay home a little more.
     
  6. rescuedlawn

    rescuedlawn LawnSite Member
    Posts: 82

    Trailer not worth fixing. It's and old home made one that's not really suitable for this use. Great for mulch though.
     
  7. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    I understand, I use to manage a auto machine shop and this was extra money for drag racing. Then grass cutting just got better over the years.
     
  8. allinearth

    allinearth LawnSite Senior Member
    Posts: 609

    If you are not making enough off mowing to repair and replace your equipment as you go then you are not charging enough. That is the major problem in this industry. Too many guys don't realize their true costs until all their equipment is shot and they don't have money to replace. In the meanwhile they have charged too little driving the industry pricing down making it harder on legitimate long haul comp.
     
  9. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    IMO, The OP started this venture undercapitalized. With no reserves to fall back on and only 3 accounts to maintain, I am not surprised this has happened. Since the OP currently has employment furnishing him with $70,000 per year and not knowing the overhead the OP Currently maintains I often wonder why this happens to so many members on this site. My advise, send a letter to your 3 accounts and tell them that your temporally shutting down your business, do to restructuring. Start saving your money and reinvest in decent equipment for the future. You will also need to start planning on departing from your current job and remember if your serious about this transition from one business to another it really will be a all or nothing proposition. Otherwise if your not willing to make the commitment, stick with your primary source of income and maintain other peoples lawns from a charitable standpoint. At your present rate of growth to reach 100 accounts within the next 4 years is totally unrealistic based on the information you have provided.
    easy-lift guy
     
  10. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    Well here at my thoughts. From what you have explained this is business as usual for a lco and more so the issues of a small one. Truck issues are normally over exaggerated by mechanics unless its frame issues. I had a 15cent o-ring go out on the valve in the valve body and I had 3 mechanics saying I needed a rebuild. I don't think borrowing money is your answer either. If it was me I would upgrade your trailer and buy a cheap second truck. 6k is way more than I would ever spend. I own 5 trucks and 2 of them with plows. I Payed 12k for all of them combined. I got a dodge 1998 1500- bought with 128k for 2k (had no issues) a 1990 Chevy 2500- 200k 3rd motor came with newer Meyer 7.6 plow, 3k for the pakage. 91 ford f250 with 118k and came with a fisher plow, needs to be painted but the truck is sound-3k. 93 Chevy 3500 extended cab with 6.5 diesel with toys, spotless southern truck with 210k - got for 4k and came with a 96 3500 hd stake truck with a 11ft flatbed with a 6.5 diesel. All that truck needs is a headgasket.

    I would really evaluate if your truck is really junk. Just because it may not be worth putting money into it value wise, it might be worth putting money I to it business wise. You can pick up good 2wd trucks for 2-3k all day long. To me buying a nice truck with 150k is better than a truck with 100k. 100k means its on the verge of something expensive, 150k means the first round of expensive things have been repaired. Also of you buy a truck for 3k it won't loose value. Just some food for thought. You don't sound that bad off. Also 100 lawns in 5 Yeats would be east.
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