Debt Free business

Discussion in 'Starting a Lawn Care Business' started by Hoss4x4, Sep 18, 2011.

  1. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    I just lost a bid to brickman. I think they run a 5-10% profit margin which i cannot compete with!
     
  2. Glenn Lawn Care

    Glenn Lawn Care LawnSite Silver Member
    Posts: 2,647

    I wish I was debt free
     
  3. keithslawnc

    keithslawnc LawnSite Member
    Posts: 207

    Brickman and ValleyCrest have been kicking my tail on commercial properties for the last three years. Now ValleyCrest is going after high end residential.
     
  4. That's a joke. If you see the work they do here, they would be fired just as quick as they got hired. Not sure of your idea of high-end resi, but I look at that as minimum 500/mo
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  5. keithslawnc

    keithslawnc LawnSite Member
    Posts: 207

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  6. keithslawnc

    keithslawnc LawnSite Member
    Posts: 207

    3 acres of Zoysia, lots of landscaping,32 zone irrigation inspected quarterly,125 yd crushed granite driveway to maintain,creeping fig 25 feet high to be maintained every two weeks,formal garden ect . I bid $1275 per month, they bid $900.00
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  7. wow, not sure of your area...but on a place like that....I would be around 3-K/mo.
     
  8. keithslawnc

    keithslawnc LawnSite Member
    Posts: 207

    Not gonna happen here. Only $3000 residentially here would be a farm.
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  9. well, dont feel bad....they do such poor work you will prob get called back....i recently lost a bid on a 3/4 acre property...10 ft fichus on both sides of property...32 coconut palms to be done 2x/year....lots of other palms, ligustrums, bougie,vines,etc....my bid...2069/mo...the winning bid...900/mo. i did overbid by a couple hundred bucks but that was bc i knew i wasnt going to get it and the guy was a jerk...but i def didnt overbid by 1100.....
     
  10. GreyFlames

    GreyFlames Inactive
    Posts: 90

    Debt is a tool that needs to be used correctly. If used improperly and you become over leveraged, one bad year can put you out of business. That being said, financing equipment to be able to expand your business can be a great investment.

    Always keep in mind you current cash situation, and how it will be in 12 months. Money can always be invested in marketing your company to grow it. You need to know the return on the money you reinvest in your business and compare it to the interest rate of the financing.
     

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