formulas to determine exspenses

Discussion in 'Starting a Lawn Care Business' started by eakern, Oct 8, 2003.

  1. eakern

    eakern LawnSite Member
    from Georgia
    Posts: 39

    I'm hoping to start my own BIZ this spring. I have horticulture experience from the past and management/business experience from my current profession. I have searched the postings for info reagarding how to determine exspenses but have not found what I am looking for. I'm hoping that maybe some of you out there may have some formulas to share. For example, the cost per hour on a machine ( gas, oil, blades maintenane). Also, is it customary to include the time you spend working on your machines as an operating exspense. I'm kinda anal about figuring the capital exspenses and operating exspenses to heping determine a market price. Am I being ridicuous here and over "analizing" ?

    Thankd for any info
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    first of all, expenses, not exspenses

    the amount that you charge per hour is based on the overhead, expenses, and how much profit you want to make. Everybodies per hour charge varies also in the area that you are located.

    And don't think that you are over analyzing anything. You should be picky right from the start. You should be tracking production time, down time, etc. Anything small can save you money in the long run
     
  3. eakern

    eakern LawnSite Member
    from Georgia
    Posts: 39

    You mean " everbody's per hour charge varies" ......not " Everybodies per hour charge" . Right ? :) I may not be a good speller, but I do know my grammar. At any rate, thanks for taking the time to respond. I very much appreciate your input.
     
  4. Rustic Goat

    Rustic Goat LawnSite Bronze Member
    Posts: 1,194

    Don't know of specific formulas to bottom line each type of possible expense.
    The cost of any and everything purchased or involved in your business's ability to function is your total overhead, or cost of doing business.
    If you don't currently have a CPA, it would be wise to find one, set an appointment for an hour and pay a consultation fee for their guidance. This person should be able to put on track for proper record keeping and deductibles you may not have thought about.
    Just explain to them what your plans are and go from there.
     
  5. Keith Howells

    Keith Howells LawnSite Member
    Posts: 41

    Here are two sources of information that you may fined useful. This first link will take you to a site where you can purchase books on standard production rates in the landscape industry. Can be useful for calculating costs if you have never done it before.

    http://www.vanderkooi.com/vk_land_books.html#book5

    This second link takes you to a site where you can purchase the book "How to Price Landscape and Irrigation Projects" . It's somewhat pricey but it has the type of information that you're looking for. Many horticulture programs use this as their textbook in classes on how manage a landscaping business and landscape estimating.


    http://www.jrhuston.biz/products.htm
     
  6. eakern

    eakern LawnSite Member
    from Georgia
    Posts: 39

    Thanks a bunch guys/gals !
     
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745


    helping, not heping
    ridiculous, not ridicuous
    regarding, not reagarding
    maintenance, not maintenane
    thanks, not thankd
    (gas, oil, blades maintenane) you mean gas, oil, AND blades maintenance
    to heping determine, you mean to help determine
    :D
     
  8. eakern

    eakern LawnSite Member
    from Georgia
    Posts: 39

    ,......helping, not heping
    ridiculous, not ridicuous
    regarding, not reagarding
    maintenance, not maintenane
    thanks, not thankd
    (gas, oil, blades maintenane) you mean gas, oil, AND blades maintenance
    to heping determine, you mean to help determine....


    You must be bored to have read all of my spelling errors in other posts. Do you like red pens too ? If I were to go through all of your posts, I 'm quite sure I would find more grammatical errors or have you learned about possessive nouns yet ?

    Oh, by the way. I see you like to welcome new folks to the forum so that you can insult them........ I'm guessing that you didn't like me pointing out your error even though there was no rest in your picky wicky brain to point out my typos and spelling errors. Hmm....is your medicine tasting bad . Gee ,thanks guys. ! I love here already :)
     
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    first thing you have to learn about being on this forum is don't take stuff so seriously. All I did was correct the expenses and you became mad about it. If I didn't correct it then someone else would have. Just like others have corrected me before. Second of all, when I responded to your post there is a big smilely after I posted it. That meant that I was joking around. You just need to relax and don't take what people say for granted. Everybody is here to help out someone, just like I am here to help someone, and there is another person or persons out there to help me. Welcome to the site though.:)
     
  10. eakern

    eakern LawnSite Member
    from Georgia
    Posts: 39

    Ok. You're right. After thinking about it, I did get mad and took it too seriously. I just didn't feel secure in that it was my first post . I really do appreciate your hep though. Thanks
     

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