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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. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    This is where I'm at.

    I've been running my business for 23 years now.

    I'm now to the point where guys are doing the grass cutting and I'm able to do the more profitable small jobs myself.

    In the last two weeks I've sold $50,000 worth of contracts for next year. Some of that was luck, but a lot of it is directly related to the fact when the customer called, I was able to show up and correct a situation, whereas the current contractor was too tied up at other accounts.
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  2. greenstatelc

    greenstatelc LawnSite Member
    Posts: 4

    Thanks for all the information. To answer the questions as to what Im going to do in the future, I have a degree in business marketing/ communications, and I am entertaining the idea of moving to Seattle so I can start climbing the business ladder. I have lived in the same place my hole life and I feel if Im burnt out at 26 with lawn care there is no way i would be happy at 40 doing the same thing. The seasonal part of the business gets to me and mainly I just dont want to be old and regret not trying something new

    Im thinking about asking $30000 but having $20000 be the lowest i would take.
     
  3. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Income tax does not come "off the top" and its not a factor in the sale.
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  4. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,354

    Good reply. I'd relish having an employee who didn't tear up my equipment or clients down spouts could be trusted with driving my vehicles etc. ...or sideline and pocket $ using my equipment.
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  5. MowguyLuke

    MowguyLuke LawnSite Member
    Posts: 2

    I'm in the same kind of situation. I live in southwestern Ohio and I'm thinking about selling my landscape company. I recently saw in a newspaper listing a company that was selling for 150% of their gross profits. If I were to do the same, my business would be worth $235,000. But I happen to know for a fact that in this economy nobody is going to fork over that kind of cash for an anual net profit of about $40k. I would be happy to get $100k for my business. I figured my assets are worth about $50-60k and the rest would be the rights to the customers and my reputation. My estimated gross income this year is about $160k.
     
  6. wbw

    wbw LawnSite Fanatic
    Posts: 5,403

    Thank you. 33% of gross...holy cow.
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  7. wbw

    wbw LawnSite Fanatic
    Posts: 5,403

    List it with a business broker. You might get $125,000 if your tax returns support your $63,000 number.
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  8. The Grounds Crew

    The Grounds Crew LawnSite Member
    Posts: 146

    It's sad to hear your getting out of the business, but Seattle is an awesome place. I'm from there and absolutely love it. If you have questions about the city feel free to ask me. I would also recommend joining LinkedSeattle and EastsideConnections on LinkedIn. It is great for networking and you will meet a lot of CEOs and well known people. Good luck with your ventures. What kind of work are you planning on doing in Seattle? Oh yeah my sister goes to Gonzaga.
     
  9. Roger

    Roger LawnSite Fanatic
    Posts: 5,915

    Such a person is probably not going to work for you or anybody else, rather have his own business.

    Kudos to the OP for the decision to "get out." At your age, career is a long time ahead of you, and cutting grass is not a plan. No, we don't know the details of your situation, but using your education is a far better plan. NOW is the time to have made this decision, and get started on a path that will likely lead to a much better future.
     
  10. SSmith

    SSmith Banned
    Posts: 447

    What an incredibly stupid thing to say. Yes, rack up all kinds of debt training for a career that has likely already been outsourced to India years ago. Compete with the 1000's of other unqualified kids who "had to go to college just because" who all submit their resume' for 2 open positions. Genius.

    No, being a self-made, self-employed man is the much better route. It's the infinitely more prosperous route. Always has been. Always will be. that's the american dream.

    You can't go work for GM for 40 years once you turn 18 and retire 2 Florida with a million in retirement saving anymore. Those times are long gone.
     

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