How many big guys on here?

Discussion in 'Starting a Lawn Care Business' started by joshman108, Aug 1, 2012.

  1. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Got a truck getting paid down soon. I will then pay off some stuff and save up some more then make another push. Good luck too you:drinkup:
     
  2. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Yea I reinvested a ton this year on equipt but I paid cash for everything, I'm not paying myself a ton right now but as revenue continue's to grow that'll change. I promised myself I would grow debt free, so far so good. I know that philosophy will have to change at some point though.
     
  3. MidwestTurfInc

    MidwestTurfInc LawnSite Member
    Posts: 26

    Its all relative. If you have one crew and want to add another crew on, it's a very big deal. If you have 4 crews and want to add a crew on it's not so grand of an obstacle. I've read before with property service work you never want to expand more than 30% in one year, and that would even be a large number. I'm a 2nd generation owner of an old landscape/lawn business and it's gone through its ups and downs. Back in the 70's before there was even such a thing as a commercial mower, yeah profits were huge and bidding competition was almost non existant. Today things are far different, any kid can buy a mower and figure as long as he makes 20$ an hour everything is fine and in the meantime underbid larger businesses. 3 years down the road he needs to upgrade his equipment and he has no way to afford it.

    However, once you become a large enough business you can do work that fewer other companies can do. Your overhead is tremendous but your profit margin goes as up. IMO 2-6 crew companies are the hardest to run. It's tough to pay all the leads salary to know they will come back each season. Growth and reduction is hard on the company and cash flow is generally sporadic.

    I'm not speaking from some great experience. My company currently has a couple lawn crews, couple landscaping, chem app employee, irrigation tech and salesman/owner which is myself. And, my parents still do landscape architecture.
     

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