Figuring overhead

Discussion in 'Starting a Lawn Care Business' started by Blade Runners LLC, Aug 27, 2013.

  1. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,785

    Heres a quick break down of expenses per day.

    Truck .80$ per mile x 50 miles = 40$

    Mower 8$ per hour x 5 hours = 40$

    Handheld and misc = 10$

    So basically on a 300$ day expenses are around 1/3.

    That's 100$ so I would net 200$ for the day.

    Taxes will kill off at least 1/3 of that so in my pocket a 300 $ day is actually around 150$ in real income.

    If you don't know your expenses its possible your working for literally nothing.
     
  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,785

    Actual money that you take out of your business is around 50%. I ran some #s in the above post
     
  3. M&L

    M&L LawnSite Member
    Posts: 245

    Makes sense to see the numbers.
    It seems you drive quite a bit more than I do, and if the operating cost on a mower is that high, Its probably a Z, or a larger walk behind. Or a 300$ craftsman that's trash after 65 hours hahaha (not to say you use one, just to stress the point of buying a cheap item plus repairs plus the cost of a commercial replacement item is always more than just the price of the commercial one.). But for the bigger yards, that's what it takes. My fleet(mainly Snapper's and Tru-cut's), though cheaper to operate, would do no good back east.
     
  4. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,785

    Is really suprising how many Lawn fellers have no idea of what their overhead really is.

    My mower expense breaks down like this, and is baised on 1000 hours.

    4$ per hour in purchase/replacement cost.
    2$per hour in fuel
    2$ per hour parts and maintance

    Im running a Bop 44 duelly that I paid 4k for, and a 48' Toro Grandstand that I paid 4500$ with 80 hours on it.
     
  5. Blade Runners  LLC

    Blade Runners LLC LawnSite Member
    Posts: 8

    WOW great info everybody I really appreciate it. I am currently enrolled in an entrepreneurial bootcamp class and also am taking some marketing, accounting, and business management classes to help prepare me. But yes i know that no amount of schooling will completely prepare me for the real thing. So I will prepare the best I can and deal with issues as they come(because I know they will) and be better for it. Another question how are you guys tracking all expenses? Just through your business accounts or just tracking recieipts, quickbooks, a simple excel spreadsheet, old school handwriting everything down? Just curious as to what works for you guys best.
     
  6. Blade Runners  LLC

    Blade Runners LLC LawnSite Member
    Posts: 8

    Foreplease, thanks for the indepth info!!!! Definelty things to consider for the long haul!! If you dont mind me asking how long have you been in business and how many employees do you have on average?
     
  7. foreplease

    foreplease LawnSite Bronze Member
    Posts: 1,920

    I have had an interest in turf since 1977 thought here have been long periods where it was not my main gig. Turf school grad 1981. I have no employees now and hope to keeping that way.

    Have had several businesses over past 30 years w/some overlap
    Retail music 10 yrs
    Concert promotion and artist management about 9 years
    Licensed residential builder specializing in insurance repair work and rental housing lot of that time - many years
    Some successful, some fun, some both, some neither.


    Some more fun, others more successful
     
  8. Blade Runners  LLC

    Blade Runners LLC LawnSite Member
    Posts: 8

    Thanks for the advice. I was wondering where do you take turf classes at? Like local community colleges for something like horticulture??
     
  9. foreplease

    foreplease LawnSite Bronze Member
    Posts: 1,920

    I'm not sure in your area. Mine was at Michigan State full time (more than full) for 2 years with a required placement training work experience in between years. There are bound to be some people from your area on lawnsite that would know where to get started. Some possibilities include: a community college, count extension office, training and seminars put on by professional organizations or industry suppliers, a class to prepare for your state's pesticide applicator exam. If you end up having to piece together your own plan, classes on soils, turf and weeds, chemistry, plant biology are good places to start.
     

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