How much better did you do your second year in business compared to your first???

Discussion in 'Starting a Lawn Care Business' started by BlueGrassBoy, Oct 30, 2012.

  1. BlueGrassBoy

    BlueGrassBoy LawnSite Member
    Posts: 41

    Please tell us how you did or did not do better your second year in business compared to your first. Please tell what you would have done differently if you could go back and on average how much does your business grow from season to season. I was wanting to know what to expect for next year because it will be my second year in business.:) Thanks.
     
  2. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,782

    We doubled our customer base but lost a large HOA.
    Posted via Mobile Device
     
  3. 123hotdog

    123hotdog LawnSite Senior Member
    Posts: 482

    I know that profit plays a role; but in the beginning measure your success by customer count. In the beginning it is much better to have allot of people owing you a little money than a few people owing you allot. I have seen so so many people starting out invest a ton of energy in that one or two big customers and those are the ones that are a phone call or two of being out of business. Pay cash Pay cash Pay cash in these uncertain times. Not only does this industry deal with the economy, we deal with drought as well.
     
  4. Blades Lawn Maintenance

    Blades Lawn Maintenance LawnSite Bronze Member
    Male, from Baton Rouge, La
    Posts: 1,233

    My second year went pretty smooth... I barley advertised in newspapers and the yards paid for the ad
     
  5. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    We doubled our account base also, but we let some low end stuff go so we actually are in better shape for next year by opening up slots for higher end accounts.We only take on year round accounts now and as we grow next year we will drop some more per service stuff. As for equipment we are set, only a new 30" pusher is on the table for purchase.
     
    Last edited: Nov 2, 2012
  6. knox gsl

    knox gsl LawnSite Platinum Member
    Posts: 4,918

    Well said HD, I would say that for the first few years you should double every year and then a steady 15% after 4-6 years is healthy.
     
  7. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    I'd agree with HD also, in the beginning you need cash flow, keep your expenses to a min, and build as much cash flow as possible it will in turn allow you to grow and buy better equipment which will in turn make you more efficient and make more room for more work, which in turn again will allow you to slowly gain higher end customers and in the end you should have a lot of high paying accounts with a lot of payed for equipment, this is over a long period of time though, say 10 years or so.
     
  8. RiggitanoLandscape

    RiggitanoLandscape LawnSite Member
    Posts: 24

    3x the business the second year. I buy my customers from other getting out of it.
     
  9. tdifonzo

    tdifonzo LawnSite Member
    Posts: 39

    I doubled my accounts this year as well. This is my 2nd year and first full season. I started in July of 2011. I also dropped some low end accounts and slow payers.

    I wanted to add a riding mower but I don't think I can justify the expense just yet.
     
  10. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,726

    I did silghtly better my second year, and slightly better each year now finally after 5 years I seem to hae more work than I want. It takes a while to build a business.

    I will also add my first 2 years I worked a full time job, so Im not sure how I would have done if I didnt have the job, but it would have been better.
     

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