Failure

Discussion in 'Lawn Mowing' started by jtrice11, Nov 22, 2004.

  1. jtrice11

    jtrice11 LawnSite Senior Member
    Posts: 380

    What is the most common reason Lawn Care/Snow Removal businesses fail? Lack of work? Underbidding? Poor quality work? My brother and I are seriously considering starting a Lawn Care/Snow Removal business.
     
  2. tinman

    tinman LawnSite Bronze Member
    from ga
    Posts: 1,348

    Not bidding enough. Not figuring winter months into the equation. That is my opinion.
     
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Cash Flow is the #1 reason .... or there lack of it

    Causes ==> Growing too big too fast .... taking on jobs not qualified to do or don't have the equip to perform .... getting more work than can handle in a given time frame ..... having over priced equip n not enough work to pay for it
     
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    cash flow. not having due dates, late policies, penalties for late payments is the #1 headache for this line of work. whatever means you use to finance your operation , the payment has to be there by a certain date, or late fees/penalties will be enforced. yet, the lowly lawn boy, for fear of upsetting the client, will never demand such terms. when his mortgage is late, credit card bills late, etc he's getting wacked with late fees/penalties/interest. also, creating too much overhead, it will force you to work for peanuts.
     
  5. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    People walk into this business without a plan and no goal. They buy a couple of mowers, take on too much debt, and think they are in business. To be successful, you have to be a salesman, and you can't let the customer dictate how your business is run.
     
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    great advice there tom. also, not knowing your costs BEFORE providing a service. when you know exactly what it's costing you to operate, you will see that lawn mowing , as profitable as it could be, is also very "tight" as far as profit is concerned. give away "little extras" and you wipe out that profit without even knowing it. don't do yourself a dishonor by giving anything away.
     
  7. CamLand

    CamLand LawnSite Bronze Member
    Posts: 1,300

    Excellent response...
     
  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Great answer with just one little thing to add a good salesperson has to know how to BS the customer into buying more than they really wanted. You know when you go to buy that stripped out car and end up with a caddy that you can hardly afford, thats salesmanship! With out being able to up sell your just one of the pack.

    Mac
     
  9. jtrice11

    jtrice11 LawnSite Senior Member
    Posts: 380

    BobbyGedd--you mentioned operating on a narrow profit. Does anyone have an idea what the profit margin is (generally) in lawn care? Assuming most of your work is in somewhat close proximity and your equipment is in good shape.
     
  10. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    One more thing, if you even think about failure you will :waving: You have to know you will succeed and prosper and do what ever it takes to make that happen, and thats the hardest part, doing what ever you have to do to prosper and grow the biz. or don't waste your time trying this business its not easy.

    Mac
     

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