going out of business

Discussion in 'Lawn Mowing' started by lsylvain, Mar 8, 2003.

  1. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    I am going to be moving in 2 seasons, as soon as the mrs. is out of college.

    Here is my delima:

    Should I go for a large expansion in the hopes of increasing the sales value of the biz.

    or just keep on the same track I have been on.

    or start cutting back on things and getting my money back out of the investment. I figure I can cut about $5000 in cost out each year mostly advertizing.

    what do you guys think?
     
  2. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Why not find someone to train now that would want to buy it from you in 2 years. He would have a vested interest in its current success. Just my thoughts...
     
  3. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    I thought of that before, I also thought about taking on a partner and then they could buy me out when I'm ready to move. Only problem I have with that is, I would have to share the income for the next 2 years. I ran the numbers before and I end up with less money that way. The price I have came up with is roughly 1 years revenues with equip etc. So I'll be giving up basically 1 year of revenues and getting paid 1 year in revenues.

    I don't know...There are so many options of how to do this. I have a guy that will buy my accounts off me so I was thinking of just doing that and taking my equip with me and starting another company when we move. I was planning on doing that anyway, I just really don't want to haul all my equip halfway across the country. I'd rather get all new stuff.

    thanks
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I really don't see much sense in expanding if you know you'll be moving in a couple of years. I would concentrate on finding a buyer and getting your "sweat equity" out of it before it comes time to move.

    By concentrating on getting someone to buy it, you'll be in a better position to dump youir equipment as well and not have to drag it across the county (as you said, you would like to start up with new).

    The other thing too you have to remember is once you're gone, if you haven't sold the business, there goes any chance of getting anything for it...someone else is just going to come along and pickup those customers and there will be absolutely nothing that you can do about it.

    Good Luck in your decision.
     
  5. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    Yeah, I've pretty much rulled out expanding, but it is really tempting since I will be out of school and can concentrate all my efforts on the biz.

    I just had an idea. What if I go ahead and expand, buy new minimal equipment for the new biz to take with me. I would have it payed for and have a head start on the new biz. Of course I would still have to haul it about 800 miles. We are either going to NH or FL, got to decide if we want to go to sun or snow. lol

    I didn't think I would get as attached to the biz as I have. It is going to be hard to give it up when I think of all the time, money, and effort I've put into it.

    thanks
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501


    Attached? My other 1/2 says I'm possesed...lol. As for deciding on NH or FL, a couple of things to think about when you're riding around on your mower this year.

    One, if you go to Florida, you know there is X amount of cuttings per year (pretty much a given, too). If you go to NH, you have a substantial less number of mowings per year. Well, then you could say I will make it up in snowplowing. Answer to that is a big "maybe". This year was great for snow plowing in the Northeast and we made a bunch of moneyat it. BUT, the last two years we didn't make didly squat in plowing snow. A whole lot of people got out of it.

    You might want to think about that...mowings are a given (except during a drought) and plowing is a hit or miss.
     
  7. bastalker

    bastalker LawnSite Senior Member
    Posts: 965

    One, if you go to Florida, you know there is X amount of cuttings per year (pretty much a given, too). If you go to NH, you have a substantial less number of mowings per year. Well, then you could say I will make it up in snowplowing. Answer to that is a big "maybe". This year was great for snow plowing in the Northeast and we made a bunch of moneyat it. BUT, the last two years we didn't make didly squat in plowing snow. A whole lot of people got out of it.

    You might want to think about that...mowings are a given (except during a drought) and plowing is a hit or miss. [/B][/QUOTE]

    If your not plowing your doing fall cleanup!! Big biz here in NE!!:drinkup:
     
  8. STAN1366

    STAN1366 LawnSite Senior Member
    Posts: 334

    Why not advertise both the sale of your business and for new accounts. Look for someone who might want to start up a business, but doesn't have the capital. They could work for you while you also build up the accounts. The new owner will be familiar to your customers who will be less inclined to dump him since he'll be servicing them the way you have. With a proven track record it should be easy to get financing for your employee to buy you out. As far as $ value for the accounts, I think thats' been covered on other threads. I've never bought any accounts. I've either had friends "give" me accounts that were too inconvient for them or "given" accounts to other friends for the same reason.
     
  9. TaussigLawnCare

    TaussigLawnCare LawnSite Member
    Posts: 206

    I just bought out a business because he was moving and i bought his equipment all seprately and I am giving him 3% of what I make this summer off his yards. I wish I woulda had this deal when I started.
     
  10. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    The NH or FL descision is up to the old lady, depending on where she gets the best job. If we go to NH I was going to concentrait more on construction, maby even buy out my uncle's constuction biz since he is getting up in the years and is wanting to cut back.
     

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