I want to lease my buisness.

Discussion in 'Lawn Mowing' started by LAWnENFORCER, Jan 29, 2004.

  1. LAWnENFORCER

    LAWnENFORCER LawnSite Member
    Posts: 65

    I have been doing lawn maintenance for approximately 9 years. In the last couple of years my buisness has grown. I work LE full time and I need a break. What I want to do is "contract" someone to run my buisnees.

    I would let them "lease" my equipment for a very fair price and ask for at least 60% gross. I would be responsible for major non-negligent repairs and they would be responsible for minor costs; i.e gas, oil string, etc. They would have to sign a no compete contract and would receive a 10-99 from me. I will still take estimates and collect the money. Basically, I want to be the "suit and tie guy", without any employees.

    Could this work?
    Thanks for the input.

    KB LAWN
     
  2. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    Essentially thats what you would have though is one employee that would be making a killing off you. If you still have to take care of all the expenses (major expenses) and buisness end and your "employee" would get to take home 40% of the company gross I would say thats a pretty good deal for the other guy. Make it easier on yourself just hire someone and pay them $10-$12 an hour.
     
  3. AuburnGuy

    AuburnGuy LawnSite Senior Member
    Posts: 279

    I don't have much experience in that area, but if you were to ask me to lease your equip, pay for gas, maintenance, etc, and only get 40% of the money, I would say you are crazy. I would not be making any money. Say you make $60/hour working I would get my $24 minus gas and maintenance cost, minus taxes, minus leasing cost, I might as well take a job making 8-10 per hour that will give me some benefits. I may be missing something, but that is my opinion.
     
  4. Shuter

    Shuter LawnSite Bronze Member
    Posts: 1,171

    Sounds like you should hire some people to work for you and @ the same time expand the customer base. Have one good employee be your right hand man, which would free up your time.
     
  5. pjslawncare/landscap

    pjslawncare/landscap LawnSite Bronze Member
    Posts: 1,410

    From a motivational stand point I see some benefit in leasing your business, however I would be highly concerned about him deciding to go into it himself despite a "no compete" aggreement. NC's dont always hold up and are sometimes difficult to enforce afterwards.
     
  6. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    it sounds like a pretty cool idea!

    like some others have stated, only giving the guy 40% to run the bidness on seems like not enough!

    take a leason from other franchises that do kind of what your thinking of....(dunkin donuts is one)....they split the profits on a percentage bases until the manager has reached a certain pay out then the business is his!,,,,might be worth a try!
     
  7. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    I agree with the first response from ProMower. You'd basically have an employee - he'd just be making WAY more than he should be.

    Listen, there's really no sense to doing it that way. Having employees isn't really all THAT difficult. And it's certainly not worth giving up that big of a chunk of your money.

    If you don't like the hassle of employees, just hire out for that part. There are companies like Paychex who will handle all of the payroll, pay checks, taxe prep., tax deposits, workers' comp., etc. for you for a low fee.

    If you want to take it a step further, there are employee leasing companies who do all of the above PLUS interviewing, background checks, etc. and then all the workers' comp. stuff is under THEIR belt. The employee is actually their employee. You just direct him and pay the company. This is a little more expensive but still much smarter than throwing away 40% of your $.
     
  8. SIRCAESAR

    SIRCAESAR LawnSite Member
    Posts: 128

    Lawn Enforcer if you don't want the employee hassle, you mise well subcontract, thats basically what your saying anyway..
     
  9. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    it sounded more like he didnt want to be hassled with the day to day operations BUT still wanted the bling?
     
  10. Turf Technologies

    Turf Technologies LawnSite Senior Member
    from Florida
    Posts: 590

    I did that for a year. Used my own truck and his equipment for 50% split. I wish I could go back to that. O well!
     

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