"EXPANSION"

Discussion in 'Lawn Mowing' started by Pooners, Jun 12, 2000.

  1. Pooners

    Pooners LawnSite Member
    from Midwest
    Posts: 13

    I currently handle 10 locations on a PART-TIME basis. I am a FT Sales Rep. I have been approached with the possibility of handling an additional 60-70 commercial locations (they like my work). Revenue generated is estimated at 150K plus. Can anyone give me some advise on Budgets for an operations this size. Any info is helpful. Equipment needed, Labor w/ costs, Insurance, Workmans comp, etc. I have a sales, management and customer service background. I truly enjoy this industry and would like to turn my pt-weekender into a Full-Time Business. Any thoughts or suggestions welcomed.<br><p><font size="1">Edited by: Pooners
     
  2. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Don't let those big dollar figures fool you, you will be spending a large portion of that on your expenses. You didn't say what type of commercial work. If its apt.complexes you will be working 24-7 to keep them up, from your profile I see you are in the midwest, you should be getting rain so you will be a busy beaver. You will have to plan on buying only the best commercial equipment, Dixie Chopper, Stihl, etc. The size of the mowers depends on the size of the prop. As for w/c, make sure you even need it first, how many employeed will you need? If you load up on helpers your going to be netting less than what you are right now!<p>Homer
     
  3. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    Thats a big step up. But only $150 grand for 60+ properties??? Man if you are doing leaf cleanup, fertilization, mowing, etc. that is way too cheap unless these are small and you can get in and out in a hurry. Also how far apart are these? What happens to all that shiny equipment if you lost part or all of those accounts? Sorry to sound like a pessimest but I just don't want you to fall on your face.
     
  4. Pooners

    Pooners LawnSite Member
    from Midwest
    Posts: 13

    Fellas...&quot;Thanks&quot; for the responses!! Big decision...I have a wife and 2 kids to think about!! Any and all feedback is good!! They are all small locations (quick jobs - convienence stores, car washes, storage units, etc..) spread throughout the city (not so good - travel time). I am estimating $ on the low end....fertilizing, mulching, trimming, etc are extra. $150K is the mowing estimate alone. (I printed off PHil Nilsson's response of starting a fertilization program re: getting educated and a license). I would purchase new commercial equipment (I currently use a JD STX38, Yardman 17hp, etc). I have some ideas for marketing, (picked up some great ones in this forum). Would want to diversify when appropriate (don't want a garage full of new mowers if they go elsewhere). Enjoy this business....and have a strong desire to jump in with both feet. Initially intend on handling the mowing while &quot;training&quot; my brother on the finer details and then transition him in to manage the crews. Can a 3-man Crew handle 80 locations with good scheduling and the right equipment(OCR's method)? Also....has anyone ever paid on a &quot;performance&quot; basis? finally....sorry y'all, but I have alot of questions. Can anyone estimate (guestimate) percentage of budget for payroll, expenses, equipment, profit margin? Thanks in advance for your response.
     
  5. Charles

    Charles Moderator Staff Member
    Posts: 7,949

    Pooners, this post is so general. Go to top right hand corner and search through ALL the discussions and you will find many answers to your questions aand then come back and narrow it down to the ones you didnt find.
     

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