lco gone under

Discussion in 'Lawn Mowing' started by jsaunders, Nov 1, 2002.

  1. jsaunders

    jsaunders LawnSite Bronze Member
    Posts: 1,781

    I just found out today that one of the large lco has gone under. I felt bad alittle while talking to some of the guys because they were bummmed out. But I was also happy business should be even better next year:D I guess no matter what size company you have you have to be careful of how much money is coming in and how much is going out. This company had alot of equipment-trucks, trailers, loaders.... JUST goes to show just because the company is large doesn't mean there making money. I'm just so happy that my small but growing company is doing so well. The only really SAD parts is that the company sold all the equipment LAST week :mad: !! At least my wife won't be mad at me for coming home with new equipment:D Still would have been nice to come home with equipment that was bought for pennies on the dollar.:p
    Stay sharp and watch your bottom line.
    joel
     
  2. Makes me glad I only use 21" push mowers. I like you, have seen a lot of over encumbed companies go under. I really have never see a company that uses a 21" pusher go under. Eazy money, this grass cutting business.
     
  3. BigJim

    BigJim LawnSite Senior Member
    Posts: 382

    Yep Overheads and Outgoings the 2 biggest killers in this biz.
     
  4. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    Generally speaking, most companies (not just LCO's) go under not because they are not making a profit - but because of lack of adequate cash flow. I'm not saying that is the case here, but the majority of failures are from inadequate cash flow and not from lack of profit.
     
  5. John is correct as usual.

    We had a big one close up shop here and auction everything off.

    They were one of the most expensive LCO's, did fantastic work, but about 50% of their lawn care revenue was prepaid and "SKIPPY" snorted to much up his nose while not leaving enough for payrole much less his bills.

    Cash flow was there, just used the wrong way.

    BTW they were in the 5mil range a year, had 2 retail nurseries, 3 flower boteques and a supply yard.
     
  6. The Mowerdude

    The Mowerdude LawnSite Senior Member
    Posts: 372

    I've never seen them make any money either. In fact the only way I've ever seen them stay in business at all, is if they are playing some kind of game to see how many businesses they can get into. Kinda like the idea that says: "If you throw enough on the wall, some of it will stick."
     
  7. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    budget budget budget

    this is true of even of multi-national corporations...except their cash flow is measured in billions. imagine having a billion dollars of cash reserves on hand and not being able to make payroll...
     
  8. Guido

    Guido LawnSite Silver Member
    Posts: 2,085

    Yeah.......those guys are the REAL risk takers in this business.......they just reach for the stars................


    "Grass Cutting Business"? I would expect a 12 year old to call what he does a Grass cutting Business.


    ahhh......why do I bother. Sorry....Forget it!
     
  9. If someone dies from pushing those small asssss things does that count?
     
  10. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    Guys I have no idea why you even waste the keystrokes responding to a certain person here on Lawnsite who loves nothing more than to pull your chains about his pricing structure.

    Try something new....do what you do with a child that wants constant attention......ignore him
     

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