looking at my options for next year

Discussion in 'Business Operations' started by JCLawn and more, Jul 21, 2013.

  1. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    Sooo right now I have about 120 lawns I do with me another person. I don't know the exact number but I think I'm pulling like 10 or 12k a month and basically I don't have much to show for it when all the bills are payed and I don't think I make much more than my employee. Here are my opions and I'd like to hear what you guys think. I think I will be getting a full time job this winter regardless but option A. Is to continue on and refing my business, B. Is to get out all together, C. Is to drop most all of my accounts and rebuild in the spring and have just me working. D. Have a full time job and keep my high dollar lawns. I figure it would be like $1300 a week for 30hrs of work and I could have hired help take care of it. What do you guys think?
     
  2. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    Bump.........
     
  3. GrassGuerilla

    GrassGuerilla LawnSite Bronze Member
    Posts: 1,437

    It sounds like you've done a lot of hard work building a business. But I'm not sure (and I'm shooting from the hip, based on your own post) that you are RUNNING your business. You should be sure of your numbers even if you really don't want to post them here.

    Edit: It's a tough business. Some markets more than others. This time of year it sounds pretty good to have some a/c and a reg pay check.
     
  4. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    You really need to sit down and refine your business plan. If you are pulling in $10-12k/ month with a helper, and have nothing left at the end then something is wrong. I would love to build a route of 100+ lawns.
     
  5. locallawncare.ca

    locallawncare.ca LawnSite Senior Member
    from Ontario
    Posts: 756

    I would say to go over your numbers and accounts and try to streamline your operation. There is money to be made in this industry, I'm solo so I'm sure others would have more insight, but at 120 accounts and gross 12,000, that means your average house pays 100 a month, seems a little low, but you know your business better than anyone else.
     
  6. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    You are right. 7 14hr days doesnt leave room to be on top of things. It needs to change. Period. I do know this number. For me to run 2 people it cost $45 a hour and $30 for one and right now I match that number and exceed it a little. So add another person would not help. I have to do something next year. This is my third year running it after high school so I am beggining to go from a HS job to a carrer.
     
  7. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    It might be 100. Right now I don't even know the exact count. I've gained so much work, honestly its a hodge podge setup. I do a lot of things in head which was fine when I had 60 lawns and most were cash customers like last year but I can't do that anymore and a good amount of lawns have been every 10 days or 2 weeks. My business has been running me more than I have been running it. I ran the number a month ago but sooo much has changed since then. I am to the point where I could spend a 1/4 day in the office everyday and spend another 1/4 working on equipment. I haven't been failing to my customers but its not running like it should.
     
  8. GrassGuerilla

    GrassGuerilla LawnSite Bronze Member
    Posts: 1,437

    From just this, it's pretty clear you need to take a hard look at your accounts. How can I put this? If you couldn't pay a crew to go do the work, you are shorting yourself. In your cost of business, you have to plan for all expenses. Equipment (and its inevitable replacement), trucks, trailers, maintenance, insurance, taxes and any other overhead associated with your operation. Sounds to me (again, shooting from the hip here) like growing your business has been the focus. Stop me if my assumption is wrong.
     
  9. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    It was May when I realized this. I starting taking into account that I should be looking at me working as if I was an employee. My option where I cut most all my accounts out and work full time allows me to keep my profitable accounts and trim all the fat out of my company and start working all the lakes and subdivisions I work in. I need to stop working while averaging $45ish a hour for 2 people through out the whole day and make that number $90-$120 a hour. Its rough here because the going rate is $45 a man hour. So I figured if I am aggressive on the lakes I can pick up 10 houses on a street for $30 a pop and make $300 in 3 hrs or less instead of a $35 lawn and drive 3 miles to the next one......
     
  10. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,206

    This option allows me to start doing landscaping in the morning while I work second shift at a shop and have someone mow my lawns for me. I have a guy in mind who I could trust with the lawns.
     

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