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Large owner salary

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

  1. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    No, what happened?
  2. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,352

    Whoa, long story. You must not plow snow.

    Not sure if I can shorten the story.

    Didn't charge enough.

    Defaulted on a bunch of vendors and subcontractors.

    Sold SMG to Symbiot.

    Symbiot moved to Utah where bankruptcy laws are more lenient towards corporations.

    Ended up paying some subs 75% of what they were owed over an 18 month period.

    He is the main reason I am now only able to charge the same rates I was 10-15 years ago for plowing.

    In other words, just because you read it on the internet does not make it true.
  3. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    Holy cow!!

    We do plow but I dont visit plow site very often...
  4. Littlered

    Littlered LawnSite Member
    Posts: 4

    Coming to the end of my first year.
    I believe in working for my customers and not the banks! I have only added equipment as I can pay for it. Yes, growth has been slow, but I know that even though I am paying myself close to minimum wage right now I(the business)have a nice chunk of change in the bank if I needed it. (Currently saving for my first zero-turn)
    This year I have bought a truck(used), two toro push mowers, echo blower, 2 stihl string trimmers and a 6x10 trailer(Got for almost half price...couldn't pass it up). Paid for.
    I believe no overhead (at least minimal)allows me to take care of my customers with more competitive pricing and I have a couple part-timers that I can take good care of. They bust their humps for me and do a great job. One is an undecided major in college and even thinking of going into horticulture!!!
    We' not just sowing grass seed...you reap what you sow.
  5. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    If there are any "big companies" on here I'm curious, a read a stat that showed "over head salaries" as being an 11% average. which included, sales persons, office assistance, managers and the owner.

    So If i was a 3 million per year company, assuming that each crew does 200k average sales, I would need to have 15 crews? and I would have a budget of $330,000 for all salaried persons including myself? 3-4 man crew that would mean I would have 50 guys working for me, I asssume that you would need 4 staff members to manage, at an average of $50,000 per year - so I should only expect to pull a salary of $130k per year to manage all of that and risk all of that?

    does this seem correct to you as a big company?
  6. seabee24

    seabee24 LawnSite Senior Member
    Posts: 619

    hey Mark - it happens, doesn't really change the important things in life.

    " you miss 100% of shots you don't take" - Wayne Gretzky

    " I've Failed over and over and over again in my life, and that is why I succeed" - Michael Jordan

    Brings an interesting perspective after thinking about these
  7. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    Thats a good point. i call it the business circle of success, corny i know.

    Pay your employees well (ones worth the pay) and they will do quality work, once your clients see the quality work they will be happy to pay for it, they pay well and consistantly means you get paid better and can afford to pay for quality workers.

    the key is finding those workers, can take 10+ employees to find a good one.

    if you are only making minimum wage would you work your tail off? me? i wouldn't work for minimum wage.
  8. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,352

    There's much, much, much more to it than just a single failure. I gave you the Cliff's Notes.
  9. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    more customers, more crews
  10. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    Good way of going about things. banks can be good. if done right. i'v found a company that buys the equipment, then leases it to you till you pay it off. so you can write off the amount you are paying. kinda negates the interest. but overall i make more money with the z i'm getting than what i woudl make without it, even with the payment. but gotta be carefull. some debt is good, a lot can keep your company in the red.

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