Is my business growing to fast???

Discussion in 'Lawn Mowing' started by greeninga, Apr 12, 2008.

  1. greeninga

    greeninga LawnSite Member
    from GA
    Posts: 81

    I would like some of you guys opinions

    Since last year my business has doubled, from $220,000 in sales to $434,000

    in total contracts. It is extremely hard to keep good help, as right now we

    are fine on employees, but if grow any more it will be rough finding good help.

    I have the opportunity right now to bid a $300,000 dollar job. (Grounds Maintenance).

    If I were to get it I would almost double again,my mother (I'm a little younger than some on this site) is telling me to slow down and get myself together, because I am wide open now. I really do want to bid this job, I may not get it, or I could. She has told me slow down and pace yourself right now, because I could fall moving so fast, which I agree but I am on the fence on this one.

    So do you guys think I should take mothers advice and not bid that very large job, or go and try to get it. I know usually you supposed to listen to your mother, but I really would love to bid that job. Even though I do not know where the help would come from. I know it makes sense to listen to what she has said, but I know jobs in that large dollar amounts do not come around often. So help me out

    Thanks
     
  2. greeninga

    greeninga LawnSite Member
    from GA
    Posts: 81

    Did not mean to my business out there in dollars amounts:hammerhead:, but kind of had to give you guys an understanding. Thanks
     
  3. wallyturcotte

    wallyturcotte LawnSite Member
    Posts: 78

    i would say go for it if you have the man power and the equipment to handle an account that big.....the more money you make the faster you can retire and enjoy life.... thats my .2
     
  4. greeninga

    greeninga LawnSite Member
    from GA
    Posts: 81

    Well getting the equipment is no big deal, but the finding GOOD

    manpower has always been my problem, but so has it for everyone else.
     
  5. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    you must have systems in place to handle the extra work. "It takes a lifetime to build a good name and a minute to ruin one"........
     
  6. Toad

    Toad LawnSite Senior Member
    Posts: 443

    As long as your not steeping out of your territory and sticking to grounds. A bid that large sounds more like a building ond grounds, whole different animal.
     
  7. mag360

    mag360 LawnSite Silver Member
    Posts: 2,446

    The best move at this point (for most companies) would be to concentrate on streamlining your current operations. Too much growth at once can be hard on any company and death to some. A single $300,000 contract can be especially dangerous---you need to quickly come up with the manpower and equipment to handle it but if you ever lose the contract you'll lose a large percentage of your projected gross income.

    I'd pass on it but I'm sure you will be up to the task if you go for it.
    Good luck and congratulations on your impressive growth so far. Some of the most stable and profitable companies gross $1,000,000 or less annually.
     
  8. greeninga

    greeninga LawnSite Member
    from GA
    Posts: 81

    Roughly would cost me 70K, in equipment costs. 200 man hours per week extra. A big hit the first year for that job.
     
  9. greeninga

    greeninga LawnSite Member
    from GA
    Posts: 81

    Profit margin would go down greatly first year for that certain job. Thanks
     
  10. snowjeep

    snowjeep LawnSite Senior Member
    Posts: 454

    Congrats on your growth. Would you like to come up to Buffalo for a week and sell for me? Cant help still trying to get to $100,000
     

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