How do I determine the value of my lawncare business?

Discussion in 'Business Operations' started by ajreeves, Aug 18, 2014.

  1. TPendagast

    TPendagast LawnSite Fanatic
    Posts: 7,670

    This is what I was thinking… is that "net" before owners salary?

    Im somehow doubting the correctness of the ratio of numbers.
  2. TPendagast

    TPendagast LawnSite Fanatic
    Posts: 7,670

    I do not think "partners" in anyway dictate, or open doors to size.

    In many cases they add a variable that can limit them.

    I would strongly advise against any partnership.

    Key people, and good salaries and possibly motivation through profit sharing create a situation where you can get more family time, and learn to give long time employees more reign to help grow.

    However, if an employee misuses or abuses that trust, they can be stopped/replaced.
    Not so easy when a partner does what you don't want them to.
  3. ajreeves

    ajreeves LawnSite Member
    Posts: 31

    Yes before owners salary
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  4. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,114

    300k with two owners plus employees won't leave you with much

    Better idea would be to hire a manager. At least you could fire him.
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  5. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    This is the correct solution. A manager with incentives to maintain or grow profits is the way to go. Why mess up a good thing by partnering? Keep subbing work to the other guy if that is working.
  6. ajreeves

    ajreeves LawnSite Member
    Posts: 31

    Yeah I have thought about having a manager, but I just worry what will happen when and if there is turnover in the position.
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  7. ajreeves

    ajreeves LawnSite Member
    Posts: 31

    I was thinking if he brought his revenue and equipment and paid me 100k that would be a fair deal for us to move forward as partners. Any thoughts?
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  8. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,551

    EVERYONE is replacable. Read that again.

    My key employee (manager) walked two Mondays ago. I didn't know what to do. Tuesday after, it's business as usual. Guys got promoted from within, brought in new tallent, it's all good again. Don't let fear push you into something that isn't best for you long term.
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  9. wbw

    wbw LawnSite Fanatic
    Posts: 5,475

    Help us understand. You are on track to make 187k this year. Unless you live in Manhattan or Honolulu that is big money. Explain why you want to screw with what you have.

    The only reason to take on a partner is if they can provide something you can't hire.
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  10. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Posts: 1,404

    GOOD advice - I need to be reminded of that! Thanks.

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