Invester

Discussion in 'Starting a Lawn Care Business' started by Garick, Jan 11, 2007.

  1. Garick

    Garick LawnSite Member
    Posts: 5

    Hello everyone!

    I am new in the business and I was wondering if its a good idea to use an invester to start a business, I really do not have the funds to purchase equipment by myself. What do you ask of them, such as what % they want and how long they want to be invested. Can anyone help with this?

    Thanks
    Garick
    Lawn And Landscaping
     
  2. newbomb

    newbomb LawnSite Senior Member
    Posts: 391

    I would not recomend using an outside investor to start. If you have to start small then start small. You could set up a small rig for $1500- $2000 and recoup your money in a month or 2. Advertise a little hand out fliers and work. Don't buy too much stuff till you get started and first thing you need to do is think about exactly what kind of work you want. There really is no reason for an outside investor. If you have a decent credit card limit you could get started.
     
  3. Garick

    Garick LawnSite Member
    Posts: 5

    Thank you for the advise, I will try another way to begin.
    I have been reading on this site for awhile now, and I have learned alot just by reading, I want to start small and work my way up to commercial, down the road (few years later) into landscape design.

    Once agin thank you
     
  4. tjsquickcuts

    tjsquickcuts LawnSite Senior Member
    from Atlanta
    Posts: 943

    I agree with NewBomb, I say start out small, and growth smart and under control.....I think this way you will appreciate with you have, and not to mention you will have a story to tell when people ask how you started.....I love telling everybody that I started out pulling my 21 in out the back of my Ford Explorer.....and how I stayed on one lawn for almost 6 hours trying to cut and bag with my 21in mower......That was the cross road for me, but I am still here, and doing awesome now.....I have seen alot of guys jump into this business, send all kinds of money buying all new pretty equipment, only to find that its really not for them.....I bought 2 three month old BR 600 Monday from a guy who just decided it wasnt for him, too much work....LOL.....but I gladly purchased each @ 200 each...had them checked out for problems, and already have them in the rotation.....jmo
     
  5. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    This is not the type of business investors like to finance in the start-up stage because of the 50% failure rate. Once you reach the growth stages with your company, you will be in a much better position to ask this question. PM me if you need help at that time (1-2 years from now).

    Good luck, I wish you the best!
     
  6. dekalb lawn man

    dekalb lawn man LawnSite Member
    Posts: 134

    I would stay away from an invester as everyone else said. You should go out and get as many accounts as you can. After that figure out what kind of equipment you will need to handle those accounts and how much you are willing to spend and if you do a good job you will grow and expand to bigger and better equipment as needed. For example I put out about 250 fliers in my nighborhood, Talked with as many people that I could (friends, family, etc) and went to about 5 commercial accounts to see if I could put in a bid. Out of the fliers I got about 10 calls and got 6 residential contracts (people like to do business with local people). From family and friend referals I got another 12 accounts On the commercial end I only landed 1 but its 3 acres. This is all before the season started and I knew what i needed. I decided to buy a new Ferris IS 2000 61" and a 16' trailor, use the edger,weed eater and blower from my house for the 1st month and when I get paid from these accounts I will buy commercial stuff.I figured that the three acre account will pay for my new equipment in 1 season or less. The other 18 will pay my bills (mortgage, phone, FOOD, etc) and some will go back into the company for emrgencies, expansion ( commercial equipment) and things of that nature. Well I know I am long winded but I wanted to make sure I got everthing in. I hope this helps and more importantly good luck.

    HEY TJ I was just laughing at your comment above,( I bought 2 three month old BR 600 Monday from a guy who just decided it wasnt for him, too much work....LOL.....)So many people get into this line of work and think that it is so easy to do, it is not easy by any means but the satisfaction that we get out of owning our own time and not punching in day after day is well worth it. So keep up the good work and keep on living the nice little dream us in this business get to live.
     
  7. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Start out small with what you can afford first.

    An investor is going to want to see an extremely detailed business plan, and proof that they're going to get their money back.
     
  8. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    This is one of the easiest busineses to start and the reason is, it doesn't take much money to get in to in the beginning. The very basic and I mean very basic! Go to Lowes or even Wal Mart and get a solid self propelled mower, blower and straight shaft trimmer. You should be able to buy all for around $400-$500 dollars. This equipment is by no means commercial and will not last long if your mowing alot but it will get you started. Even if you mow only 7-10 yards a week this type of equipment may not last you all season. I highly recommend buying a commercial 21" like Toro and a good blower and trimmer from Echo or any other commercial brand. If you decide to go this way you will be much happier in the long run if not day to day but your cost is going to be higher say around $1,600.00 or so.
     
  9. Garick

    Garick LawnSite Member
    Posts: 5

    Thanks everyone for your input i will take your advise!!
     

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