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Increasing $$$'s per year

Discussion in 'Lawn Mowing' started by 1MajorTom, Jul 21, 2004.

  1. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    I was just wondering if there is a percentage or a general idea how much a business should increase their profits each year.
    I just compared last year to this year and we have definitely brought in more money. However, we also spent more money year to date. We are still ahead though. I'm wondering what is a good percentage for a small business to increase each year?
  2. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    I dont have a percentage figured out, but i always want to be increrasing PROFITS each year. Of course the more you make the more you spend, but i still would like to bring in say 10-20% more each year.

    For me being a small show, next year i am looking to at least double say 50% or more.

  3. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    At least 1000% :D

    Actually, next year I'm hoping to net about 5%. It used to be better in the past, when companies and people were getting bonuses left and right, but things are starting to come around again.

    I guess some people would say this is a bad economy since they aren't growing the business by 20-40% every year.

    I look at it as a good economy, I have no one stiffing me for work, I can still get a "raise" each year. My wife is a state employee and she's getting a smaller "raise" than I am this year.
  4. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    it takes money to make money unfortunately. Luck and economy is also dependent. just recently i have given out 3 job proposals totallying about $30k. if i get one, two or even all of them this will be a great year for me. it'll still be a good year if i don't get any of them also.
  5. chevyman1

    chevyman1 LawnSite Senior Member
    Posts: 852

    companies that retain double digit growth are considered successful so that's how they gauge it. Trevor, what kind of mowers will you get to grow that much>? why do you use such small stuff now? I'm just curious how a 44 and 33 can be so profitable
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi 1MajorTom,

    Just as a point of reference, this site claims they can help you "Increase your income 25 to 50 percent per year" by following their procedures.
  7. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    I next year i will be able to switch from the 44z to a 52/54" z, and from the 36" WB to a 48" WB. Right now we work three days 6 hours per day. We can add an addition 50 jobs before we are maxed out. That is how i plan on doing it.

  8. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    It always looks good on paper.

    "Man, all I have to do is get twice as many lawns and I'll have twice as much money."
  9. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    I'm not sure what the answer would or should be but if you do not plan to add employees then I would imagine the percentage should be low. I mean once you're maxed out (with high profit clients) and you are as efficient as you can be then I would think the most you could increase each year 3-5% for cost of living. No?

    Jodi.. Did you bring in more money because of more clients or are you getting more money from same clients you had last year? Are you working more hours compared to last year?

    Glad things are going well for you! They are for me too.. so far. Fingers crossed for the rest of the year!!!
  10. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    My profit has increased 100% from the day I started!

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