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How much profit did you make your first year?

Discussion in 'Business Operations' started by sticklelm, Dec 18, 2012.

  1. sticklelm

    sticklelm LawnSite Senior Member
    Posts: 335

    Im trying to get an idea of how much net profit you guys made your first season providing lawn and landscape maintenance. Before i began this business, i hadnt touched a push mower ever lol. Any of you got any numbers on what you profited?
     
    Last edited: Dec 18, 2012
  2. caseysmowing

    caseysmowing LawnSite Bronze Member
    Posts: 1,849

    Part time I grossed 23,000. Profit I'd say -17,000. I have not added up all my expenses yet. I'm guessing 40,000 counting equipment and fuel. I already had a truck. I'm guessing I'll have one more year before I have to pay any income tax unless I buy another truck. Everything is paid off except for my cheetah I have one more year on it then everything will be paid off. (2 years 0%) My goal for next year is to gross 35,000 which I think is very doable.
     
  3. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I showed a loss for my first couple of years, on paper anyway, which I was actually happy about. I didn't take a dime out of my business the first year. I was building my business and didn't really need the income at the time.

    There's always that choice you have to make between drawing money off of the business and reinvesting it. I think the reason a lot of start-ups fail is because they siphon too much money off rather than investing in the future of their business.
     
  4. caseysmowing

    caseysmowing LawnSite Bronze Member
    Posts: 1,849

    That is what I'm doing right now. I don't need the money. I just want to have everything I need so when I go full time I won't need to buy anything really.
     
  5. sticklelm

    sticklelm LawnSite Senior Member
    Posts: 335

    yea netted in around 17-19k this year and i've put just about every dime back into the business as well with equipment. now that i've got the majority of my inventory covered, next year i'll put it more towards marketing the first half of the year and see if i can build on that. my biggest purchase was my 16ft enclosed i got from a factory in georgia and it was custom built inside and out very nicely for 5,300 and some change. im really hoping to triple my client base next year but i may have to accept bi weekly customers... although i'll market for weekly for the most part.
     
  6. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    -5k the first year, -2.5k second year and year three I broke even :clapping:
     
  7. ef200098

    ef200098 LawnSite Member
    Posts: 131

    -8k first year. net 10k second year, but was grossing 40- dumping alot back into the business.. 3rd year i was making a liveable salary. Steady growth every year after.
     
  8. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    OK, I'm at my other computer now, the one with my books on it. 2002 was Year 1 $3,500 net, year 2 $11,500 net, year 3 $23,000 net. That's just gross income minus expenses. As I recall, the first two years were a loss though as far as income tax goes...after depreciation and other adjustments. I was kind of bummed when I had to start paying taxes on my income in my third year, lol.
     
  9. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,484

    First year i profited -1,700, so it was loss, i put 17000 on the books and between buying a truck, and other expenses it was a loss, this year i had 45000 in expenses, but put alot more then that on the books so i ill have to pay in the spring time. Probably close to 30k in profit, and i invested alot back in to the business so next year there won't be much to buy.
    Posted via Mobile Device
     
  10. CNYScapes

    CNYScapes LawnSite Senior Member
    Posts: 917

    In the beginning I would spend as much as you can afford on advertising. Remember they cant call you if they dont know you exist.

    To answer the original question, I didnt profit very much my first year because I was buying equipment and spending money on ads, flyers.
     

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