Large owner salary

Discussion in 'Business Operations' started by dmk395, Nov 2, 2002.

  1. mowinmoney

    mowinmoney LawnSite Member
    from Midwest
    Posts: 70

    As has been mentioned in other threads...mowing service business seem to be hard to put a value on and it seems as hard if not harder to sell these businesses. The owners need to a ROI and this is one of the ways.
     
  2. newleaflandscape

    newleaflandscape LawnSite Senior Member
    Posts: 348

    I have talked to alot of guys in the industry including the big boys doing four and more mill a year. I have yet to hear of any ownder making more then fifteen percent of their gross in his pocket. At least for the guys that have been in business ten and more years. From what I have seen the higher they get up there the more that percentage goes down. Sure there are some guys out there making thirty percent but I doubt they are in business for more then three years. For a company making grossing a million dollars I would be very suprised if the owner was makin more then 120 or 130. And for you guys bashing those owners that make way to much money while their employees bust their but. Hello thats my dream and should be everyone of your dreams too. All that means is that he or she is a damn good business man if you ask me.
     
  3. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    From what i read and heard the larger the company the less net %. One clear reason for this is that you have to hire office staff and mangment. I have a dream to build a landscape company as big as John. However, honestly i am really just using this industry as a stepping stone towards a bigger goal, in a higher dollor industry.

    Matt
     
  4. LLCO

    LLCO LawnSite Member
    Posts: 55

    bump... great post
     
  5. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    You guys think that this is the same for most industries as well?

    I have a friend that runs an autobody shop, boy the expenses that they go through are right through the roof!!!
     
  6. GreenStreet

    GreenStreet LawnSite Member
    Posts: 15

    BUMP! Loved reading this thread.
     
  7. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    I think that this industry has alot of Variable expenses and alot of overheads that most don't. While this business could be considered cheap to get into or run compared to other industry's, I have yet to find one that has as many in/ outs/ up/down, High and low expenses, weather dependent, that has low hourly rates and margins.

    Plumbers can operate out of their vans, with mostly hand tools. So can electricians. Yet they charge double what we can. Retail stores are tuff to run, but they operate out if a building and don't have crews being paid to travel with truck and fuel expenses. SAT TV/ cable/ Internet installers might have similar expenses needing to he Mobil and have a shop, but they have little competition to deal with and all charge similar fair prices. Someone posted that brickman is for sale-- does a good business owner ever sell when he's making enough money to pay for the head aches? You sell because its time to cash in, the winning streak is over, or you just don't want to risk it anymore
     
  8. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    Great old read!! Wish these guys were still around LS giving advice. I wont mention names but there are a few wanabe millionaires giving out advice now and its scary....

    Still a few that are the real deal but not many.
     
    Last edited: Aug 22, 2013
  9. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,181

    You do know what happened to the "esteemed" Mr Allin, do you not?

    Talk about your wannabe millionaire.
     
  10. gcbailey

    gcbailey LawnSite Silver Member
    from WV
    Posts: 2,570

    something about reading a 10 year old thread that's been dug up from the grave...

    Only way I'll ever be a millionaire is if I win the lottery! If I'm figuring right, my salary is about 13% of our gross sales.
     

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