Help!!! I need a answer in 3 days...

Discussion in 'Starting a Lawn Care Business' started by The Cutting Edge, Aug 14, 2007.

  1. Bigray

    Bigray LawnSite Member
    Posts: 140

    imo, this has the makings of a good deal.


    the numbers sound good the equip. is in place the help will stay ?
    once you meet with the cust. u will get a feel from them if they will give you a chance to earn their bus. / the goodwill that comes from the purchase.
    their are benifits to buying a established route.
    versus trying to build one up over time.
     
  2. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    So have you made a decision?
     
  3. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,096

    I agree with fiveoboy on this. For less then 1/2 of his asking price, you can get the work. I was in a similar position earlier this summer but decided against it because I would rather grow something myself.
     
  4. The Cutting Edge

    The Cutting Edge LawnSite Member
    Posts: 141

    Well Guys I have made my desicion.. I have decided to go out on the limb and buy this guy out. Just by meeting with a few clients today that will be coming with the new biz I have already met with one client that wants a home that they had bought recently for 3.2 million on the Ohio river to have a hole new landscape design on this property.. I am guessing for this project to make my company atleast 25 stacks, so that pays for the business itself. All of the clients I have talked to in the past two days have been fine with the switch of ownership some have been happy due to the fact that I will be offering a few more services. I really think this is a good move for my company it will really improve my routes. I will let you guys know how it plays out for me. I want to thank you guys for all the point of views you had me look at. Thanks The Cutting Edge
     
  5. DoetschOutdoor

    DoetschOutdoor LawnSite Bronze Member
    from S. IL
    Posts: 1,818

    Have you taken over the route yet? How are things going?
     
  6. All_Toro_4ME

    All_Toro_4ME LawnSite Bronze Member
    Posts: 1,578


    Yea, give us an update. What did you decide to do?
     
  7. weeble67

    weeble67 LawnSite Senior Member
    Posts: 286

    Yeah, Tell us how it turns out for you. We have all read the good, the bad, and the ugly, on buying people out. I personally thought this was a great venture for you. So far sounds like a great investment. We are all curious to hear your loss rate on customers and how the route is working. So let us know.
     
  8. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Well ok, I see you say you have 4 years in and I have to respect that, the figures still seem lofty but in the end it comes down to cost... I see a lot of Lco's claim lofty figures and maybe they are true but what's the COST?

    Because grossing 170k when the cost is 200k isn't very amazing at all, now with 4 years in I would assume you have a firmer grip than that on things, then again why are you asking? Of course I likely would ask too, I really am just trying to help, I did see my note is condescending and I will have to start working on not doting on other Lco's like I always do, for that I'm sorry and I do wish you the best of luck.
     
  9. vermonta

    vermonta LawnSite Member
    from Vermont
    Posts: 87

    I had some advice as well but looks like I was to late ;)
    Sounded like it could be a good deal. Hope it worked out well for you.
     
  10. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    I don't know. It is said that it "brings in" $6000 a month ("roughly"). "BING IN" is a wide open term...especially with one Z and a wb. If this is gross, by the time you pay a crew and costs of a crew (taxes, payroll, ins., wear and tear, etc.), you are looking at whole different numbers. it is not like at 25 g's, this thing is going to "pay itself off" in 4 months. I am willing to bet the 6000 is gross on a GOOD month...not during July and August's drought season. I am with Topsites on this one....I know it's a done deal, but I would have to advise that on ANY case like this, Look at the books, look at the books, then look at them again...ALL the books.
     

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