First Year Goals (2007)

Discussion in 'Starting a Lawn Care Business' started by SDNCLAWNCARE, Nov 12, 2006.

  1. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Most of you newer guys have no idea of the costs to run everything yet.
    There is nothing wrong with that as you are learning.
    But for the guys looking at 25 Gross and a NET of 15K--- It will not happen. There are two ways to do math-- say you have everything paid for, Pocket 15K, and be out of business in your 2nd or 3rd year.

    Or do the right math, and learn that it will cost most of that 25K to just be a business.
    35 - $40 dollar accounts will not support you.
    As a solo, figure about 30-40% of gross for labor (once you got the business up and running smooth). That means that if you need 30K to live, which is not much, you shoud look to produce about 80 to 100K of work. Also expect 2-3 years of building to get to this point- a good route with proper priced accounts. Good luck all:drinkup:
     
  2. ACutAbovesiny

    ACutAbovesiny LawnSite Senior Member
    Posts: 590

    PM always has good advice.
     
  3. matttx

    matttx LawnSite Member
    Posts: 5

    PM i started in June of o6 and i was growing slow and steady until now, but my question is do you recommend chasing all business possible at first or keep it steady...i am growing about 2 accts per week but i am not doing as much as i can to get more due to expense in labor and equipment growth. Thank for your input
     
  4. VMcNeill

    VMcNeill LawnSite Member
    Posts: 55

    I finally got around to doing the numbers a few days ago. I wanted to make $12,000.00 from Mid-February till December of 2007. Just staying at scrub level(although a legal one) with commercial 2-cycle equipment and a 21" Toro, I would have to gross $34,000. That doesn't include me buying any commercial mowers.
    Of the 34k, 10,000 of that would be cash in the bank to pay for expansion, replacement of equipment and a couple of other things. If I wanted to include a commercial 36" mower, trimmer, and other necessities the gross would be well over 40K.
    kind of depressing really.

    My original goal was to gross 36,000 in 2007(silly me I thought I would take 30.000 profit). I still think its doable(grossing 36k), however I will have to distribute 10,000 flyers 6 days a week, 2-4 hrs per day from mid-february till the end of march. Thats going to be fun. :hammerhead:

    In conclusion I think lawn maintenance can be an very profitable business only if you go full blast for 1-3 years with no plans to expand or replace equipment.
     
  5. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    You can grow as fast as you want---BUT every account should be a profitable account. Never chase business that does not provide profit. It would be great if we could do 5 lawns a week till we buy the big Z and than do 50 the next day-- that will not happen so there will be times that we over work what we have, and than buy more, and right away not have the work to support. But as long as you know where you are going, and know what you really need to sell to support the equipment, You should be OK. This is where the planning comes in.
    You are doing 2 accounts a week, that is great. For most people or business, it is best to grow at a rate that is managible. It sounds like you are doing well so "stay the course" ( not the best phrase to use these days:laugh: )
    Not trying to take the easy answer but work within your comfort zone, if you feel lack of control of your business, or like you are not sure of the outcome of what you are doing,,,, Slow down for a while.
    Track every dollar that flows thru your business and don't lose money--also do not work for no money. Good luck with it!:)
     
  6. matttx

    matttx LawnSite Member
    Posts: 5

    thank you for the information
     
  7. SDNCLAWNCARE

    SDNCLAWNCARE LawnSite Member
    Posts: 232

    My goal for 2007 is 15K gross.... I already have a full time job making 65K a year. This is something I want to grow slow and steady. Make some extra money, while still having time for my wife & kids. So 20 residential cliets should be a good start, so I can learn and not lose to much money from rookie mistakes.
     
  8. SDNCLAWNCARE

    SDNCLAWNCARE LawnSite Member
    Posts: 232

    Slow is the way to go.... CASH ONLY
     
  9. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    no offence intended.....
    so you are going to be a part timer, making 65 grand a year at your full time job, isnt that enough, then, your going to do 20 accounts, once a week, but want to spend time with your family..... if it was easy everyone would succeed, you arent going to have any time at all if you approach this as a business, not a hobby....

    take the extra time and go fishing, bicycle, swim, what ever, seems silly to bother with the low return from a barly lucrative industry......at first...
     
  10. SDNCLAWNCARE

    SDNCLAWNCARE LawnSite Member
    Posts: 232

    You may be right, but I'm going to try and see what happens. I work 14 days a month.. So that leaves me alot of off days in between. We'll see what happens. I may be in over my head. But If I don't try, I'll never know what I'm missing..
     

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