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How much is my lawn care business worth?

Discussion in 'Business Operations' started by greenstatelc, Sep 14, 2011.

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  1. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Posts: 1,387

    Looks like $30k to me. Problem is you have to find someone big enough to add this work to their route. A new guy proably would not be able to handle that.
     
  2. williams lcm

    williams lcm LawnSite Bronze Member
    Posts: 1,012

    What will you be doing when the business sells? It will be hard to make that money again. I know in your next job you will not want to make less. Let us know. I like to see ideas on what else is out their that makes good money besides cutting grass.
     
  3. DEPENDABLE LANDSCAPING

    DEPENDABLE LANDSCAPING LawnSite Bronze Member
    Posts: 1,343

    Everyone has there own idea as to what businesses are worth. The real answer is that it will be worth what a particular person will pay for it.
    Posted via Mobile Device
     
  4. SouthSide Cutter

    SouthSide Cutter LawnSite Bronze Member
    Posts: 1,333

    You might be a DA for asking a high price but there may be a DA that will pay it. My dad said it always took two.
     
  5. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,260

    The lawn income you list comes out to 2300 and change per week the other bit I don't know where its coming from. So if this was in my area and you are making over 50 an hour mowing your 93 accounts Id consider paying you 10,000 for the accounts. As for the rest of your stuff I wouldn't be interested at all rather take my money and buy brand new then take a chance on used. But that doesn't mean you cant sell that stuff off separately.

    To some they would think I am over paying for the accounts but I look at the labor and time involved in landing them all. To others it may seem I'm low but there is a point when its cheaper to just advertize like crazy and get the accounts on your own. For 10k I can get close to 93 new accounts from advertizing but its always easier to take over ones already under contract.
     
  6. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,784

    figure right off the top 33% goes to income tax....at least here in CT so your 60% is already nearly out the window. repairs, supplies, equipment replacement, insurance, etc. you don't mention employees either. payroll, Workman's comp..... do you really know your true operating cost? I know about where mine are but even I dont know 100%. the 25% figure he gave is a ballpark figure that most businesses try to achieve. mine is lower. most are. health insurance companies are only around 4% but still generate ridiculous amounts of money. its worth what you can get for it. contact your accountant if you pay taxes and have one, see what he thinks or if he can point you in the right direction
     
  7. h2oskier

    h2oskier LawnSite Senior Member
    Posts: 602

    BINGO we have the correct answer.
     
  8. Will P.C.

    Will P.C. LawnSite Senior Member
    Posts: 966

    That seems like a nice little set up with everything being so close and a decent number of accounts. I would think twice about selling it as your probably do not have any of skills/education being 2 and running a mowing business your whole life. Jobs are hard as hell to come by now.
     
  9. ACA L&L

    ACA L&L LawnSite Bronze Member
    Posts: 1,108

    Gross sales plus fair value of equipment, thats a starting point. dont under sell your hard work. Call a broker that sells business's, they will give you the answers that will work for you. Im sure you can find one that has sold a lawn company or two. Im selling mine right now, we goross over 250k a year have over 50k in equipment and all the contracts, office stuff, billing, website, phone, all you need to do is pay attention and start making 20k a month, or you can start out with a debt of 30k and 5 customers and start selling your butt off for the next 10 years and then when you get to makng 250k you will be burnt out like i am.....id rather semi retire and pay someone to run it for me.....that will keep a few grand a month coming in for quite a long time, but on the other hand id love to take the 250k and buy some gold stock, get a job for 10 more years retire and live happily ever after.:)
     
  10. FoghornLeghorn

    FoghornLeghorn LawnSite Senior Member
    from Texas
    Posts: 750

    Why not just mentor someone to take your place as an "office manager/director of operations/vice president" or something along those lines and pay him a fair salary for the work?

    That way you get to keep the business but you also get to relax a little and unwind from being burnt out?

    Business may even pick up a ton if you can bounce back mentally and sell full time instead of always dealing with field work...
     

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