Genral Idea of my two year Business plan.

Discussion in 'Lawn Mowing' started by Turf Pro Lawn Care, Aug 13, 2003.

  1. Turf Pro Lawn Care

    Turf Pro Lawn Care LawnSite Member
    Posts: 26

    Please tell me what you think. I will try to be brief: Remember these numbers are projections.

    I have a $50,000 a year Lawn care business now. I picked up a partner, I brought him on at no out of pocket expense to him. I own all the equipment out right no payments.
    I am negotiating an overseas job that will last 2 years and pay me Gross approx $425,000. I brought a partner in to run Turf Pro while I am gone.
    I am projecting that at the end of the two years Turf Pro should be grossing about $160,000 a year. Being It is still in the first year of operation. This equals 100% growth each year for the next two years. I have been in operation since April and it has not been to hard to get to $50,000. I have done no advertising but door hangers which has not gotten me hardly any work but my truck is lettered nice and I am purchasing customers.
    I expect to have at the end of 2 years approx $300,000 in the bank.
    I plan to buy my father-n-laws Lawn Care and landscaping company from him for $200,000 Jan 2006. He is retiring. He is in KY. I am in FL.
    I plan to sell my share of Turf pro to my partner for around $80 - $100,000 (I HOPE). I am sure what ever the amount it will be done in payments over 2 years. (this is after I get back from overseas)
    My father -n- laws Company is grossing over $250,000 a year right now with a consistent 30% growth over the last 4 years, as of June 30 he was at 38% growth. I am expecting that trend to continue. He has a thriving business and he runs it very well. He has 4 full time employees w/ medical ins and annual profit bonus's these guys work their hearts out for him.
    The reason for all this is my wife really wants to move back to KY. We both do. We want to buy and are looking right now for about 20-50 acres of land and we want to build a log cabin and have horses and a couple cows.
    Has anyone ever done anything like this?? If so how did it turn out??
    BTW I don't need Turf Pro at all I could shut it down store my equipment and do the purchase in two years of my father-n-laws company any way. But my partner is hungry and excited and a Damn good worker. I think he has the drive to make it more successful in the coming couple of years.My wife will be doing all the billing finances of the company and helping with the scheduling while I am overseas, she will have POA so can do any legal signing that I would normally do. She has a business degree so she knows how to keep on top of things and has the time as she works in the home now raising the children.

    What do you think?
    Thanks
    Bob
     
  2. bastalker

    bastalker LawnSite Senior Member
    Posts: 965

    So when ya get back after 2 years and sell your biz to your partner, buy your dads biz, You will have bout 150,000 to do whatever with.

    All looks good on paper, alot can happen in 2 years. I wouldn't want to be away from my wife for 2 years for any amount of money. Wouldn't want to turn over all my hard work to one guy for 2 years either, even if he intends on buyin the biz.

    You could always buy your dads biz without the 2 year adventure.
    Your father in law carries 25,000 a month on the books, Im sure you could manage a $2000 a month payment for his biz. If yer Dad in law's biz is growing at 38%, in a couple of years you would have close to that anyway, and you would never have to leave your wife.

    Sell yer biz to the pard now for 50,000 a year for the next 2 years. Let him do what he wants to with it.

    You an yer wife take off to KY and be happy why throw away 2 years? Just my .02
     
  3. Dr. Mow

    Dr. Mow LawnSite Member
    Posts: 109

    sounds like a good plan, but not very realistic

    if you can sell turf pro , sell it do not take on a partner, partnership seldom work.

    they tax the heck out of money earned overseas once you come back to the states. We have a lot of family in saudi, they will not move back due to the amount of taxes they wil have to pay.
     
  4. Turf Pro Lawn Care

    Turf Pro Lawn Care LawnSite Member
    Posts: 26

    Not sure how to start this so I start here. I am 37 years old I have 5 kids 4 daughters and my boy. I have had a nice career in the wireless telecom industry but,,, I am pretty burned out from doing it for years. I have been a road warrior for the better part of my career and my wife and I try to plan our future, set goals and work hard toward them. At this point since we have pretty much two wars going on my skills are in great demand, I am well received in war torn regions. I have alway lived kinda in the old fashion manner. I work very hard and we sacrifice so my wife can be at home and raise our children (I do not like the idea of a day care employee putting their morals into my kids). My wife and I have a very strong marriage so it can stand up to periods of absence. My goal is to only work because I want to when I am 47-50 yrs old. I plan to put my children through college( If they choose to) my 17 year old is choosing not to at this time. Plus I will have have 4 weddings to pay for.
    Now my father-n-law does not want payments on the sale of his company, he want cash. I am not will to take out a loan for that much money to make money. I can make that much money by doing what I do for two years. I spend quite a bit of time in Afghanistan in 2002. I was sitting in Kabul on a roof top watching our B-52's carpet bomb the mountain sides. Two more years of the road then I am home for good.
    I can not justify selling Turf Pro for much money right now because it is just grossing $50,000 a year at this point. My part of the partnership is: well I am the problem solver and the bank when there is a financial need I take care of it. I am still actively mowing but that will soon end, my partner will be doing the outside work and I will be guiding my wife on the finances part of it. BTW I do come home periodically from overseas also.

    Bob
     
  5. Hometown Lawn Care

    Hometown Lawn Care LawnSite Member
    Posts: 147

    I have family in Saudi too, on a compound in Riyada
     
  6. bruces

    bruces LawnSite Senior Member
    Posts: 648

    The fact that your partner is in at no cost and you are planning on buying him out later doesn't set well with me.

    Most instances I have seen where someone got in to the business for nothing have not turned out well.

    Figure out a way that he has to buy in, even if it is from profits of the business.

    Also, what if he decides he doesn't want to buy you out when you get back? Do you have a written agreement?

    If not, I would strongly suggest that you get one.

    Good luck!
     

Share This Page