Having a lot of employees

Discussion in 'Business Operations' started by longislandlawn, Apr 19, 2013.

  1. longislandlawn

    longislandlawn LawnSite Member
    Posts: 130

    A lot of the big companies around me have a crew of 10-15 men, doing cleanups and other work. One company has 25 on payroll. How do these big companies pay for all of these guys and other overhead expenses and make money still?
     
  2. tyler_mott85

    tyler_mott85 LawnSite Senior Member
    Posts: 582

    There are two different multi-million dollar a year lawn mowing companies here in town that have had to move in with each other to try to save their businesses and lower overhead. One is in lawsuits all the time for not paying bills and the other owes the state $150k in unpaid taxes on top of personal debt. Both of these companies are primarily mowing operations. Both employee upwards of 50 employees during the summer. Both are apparently run by morons.

    How do the other multi-million dollar operations in town stay in the black? They're owned and operated by BUSINESS owners...not lawn care people that got big and thought just cuz they know how to cut some grass that they can operate large operations.

    Early on you have to plan way out into the future. And if you want to be large, I suggest business school.

    my two cents.
     
  3. Jaybrown

    Jaybrown LawnSite Bronze Member
    Posts: 1,160

    If you price your jobs right every employee should make you money every hour they work.
     
  4. Jaybrown

    Jaybrown LawnSite Bronze Member
    Posts: 1,160

    Sometimes it's good to price jobs by man hour. So if you have a $45 per man hour job and you pay your guys $18 in theory you should make $27 every hour they work. Don't forget to add extras on top of the hour price not included
     
  5. SRT8

    SRT8 LawnSite Bronze Member
    from CA
    Posts: 1,266

    We have over 20 employees and running strong, making money every single day. You have to look at your over head and price everything accordingly. The list is very long of things you have to do right in order to run a profitable operation.
    Posted via Mobile Device
     
  6. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Posts: 3,331

    Sent you a PM
     
  7. tyler_mott85

    tyler_mott85 LawnSite Senior Member
    Posts: 582

    I've always heard that employees actually cost you up to twice what their wage is by the time you factor in all the different types of insurances, taxes and any benefits you may or may not add to their salary as a matter of course.
     
  8. CreativeLawncareSolutions

    CreativeLawncareSolutions LawnSite Silver Member
    Posts: 2,025

    Pretty much.
     

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