How would you spend $1,000 free money?

Discussion in 'Lawn Mowing' started by FrankenScagMachines, Nov 14, 2002.

  1. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    If you are starting out, have all the 2 cycle equipment, but desperately need to upgrade mower, dont' have but a couple customers, and a rich relative gives you $1,000, would you:

    A) invest it towards a business with commercial mower and customers for $4,000 (borrow the rest) That pays for itself in about 2 months and will make good money after that. 17 customers that require maybe 12 hours a week to mow. Mower is 2000 Exmark TTHP 48" 15hp Kohler w/b with MicroMulch kit, Jungle Wheels sulky with only 130 hours on it, mint condition.

    B) put it towards a used commercial mower and try and build your own customer base, but at least you wont' be in debt or be buying someone else's problems. Still wont' have the customers and won't be making all that money as quickly.

    You're 15 years old and looking to buy a truck as money permits, using your parent's van until then. Have a 6x12 open trailer, Stihl, Echo and Kawasaki handhelds and a good LawnBoy pusher.

    I really want to go towards option A) , it seems to be better option than B) but nothing is perfect and neither is any deal.

    Thank you for your time and opinions! BTW, I have all winter to think about and research my options.
    Thanks!
    Eric
    PS comments, suggestions, advice only please, please please do NOT make this into an arguement! Thanks
     
  2. Bush hog boy. Why are you asking this question? At 15 years old, able as you are to even ask these questions, why do you do it? I think that at 15 years old most on this site was collecting ice cream money from their care takers. I think that you know what to do with the money.

    Go to Vegas and Put in on the Dark Side.
     
  3. dlandscaping

    dlandscaping LawnSite Senior Member
    from mass
    Posts: 835

    Take that $1000 and invest it in schooling. Learn all you can about crap leaf mulching and physics of FD's and then figure out you wont make it in this biz.
     
  4. little green guy

    little green guy LawnSite Senior Member
    Posts: 955

    Put it towards a different buisness, but hey thats just me.
     
  5. HarryD

    HarryD LawnSite Bronze Member
    Posts: 1,069

    i would buy a truck and use the stuff you have
     
  6. Doogiegh

    Doogiegh LawnSite Senior Member
    Posts: 871

  7. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Kid, you continue to amaze me. At 15 I didn't know my azz from my elbow. I was totally clueless. You seem to have it together.

    I would personally chose option A. Although I am not sure I'd pay $4000. I may try to talk them down a bit. I always figured about 1 months' worth of earnings per client was a good amount to pay for buying customers. And even then, I'd pay only half down and then 3 months later, when I could tell if they were really going to stay with me or bail, I'd pay the rest. Whoever bailed, I wouldn't have to pay for.

    Anyway, I like option A. If you are wise you'll take that, put all of the earnings from those clients toward paying back whoever you borrowed the other $ from and then you are free and clear with 17 more clients! I know clients aren't all THAT hard to get. But 17 of them takes a little time and hard work. I'd love to pick up 17 accounts any time of the year.
     
  8. stevo22

    stevo22 LawnSite Senior Member
    Posts: 344

    i would hire a different escort 6x...$100 left over for tips:blob4:
     
  9. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    I looked at that mower on ebay, don't think it's worth it as I heard (when attempting to fix up a 36" mower just like that only bare bones) that those old styles are hard to get parts for and not as good as newer ones. Plus I would rather hydro and floating deck.
    These 17 customers are the result of a weed-out of all the bad ones so they're premium's. Plus a few are in a $500,000-700,000 neighborhood and are the best lawns in town. I went in the field one day with the owner and I can say that there is good money in it.

    littlegreenguy, explain more? you mean start my own?

    Thanks,
    Eric
     
  10. bruces

    bruces LawnSite Senior Member
    Posts: 648

    I don't know what the mower is worth, but if it is worth a minimum of $2,000, I would seriously consider option A.

    If they are premium customers as you say, you are then paying $2,000 for 17 quality customers. If you look at the cost of advertising and the time involved in getting up to 17 customers, I believe it would be well worth it. That is just a little over $100 per customer.

    I know others on here will disagree with buying accounts, but I would pay $100 per customer for a good customer any time.

    If you can do the work, I would go for it. Like you say, the payback period is very short.

    Good luck!
     

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