My first year....is this normal??

Discussion in 'Starting a Lawn Care Business' started by arapahoetree, Dec 7, 2006.

  1. arapahoetree

    arapahoetree LawnSite Member
    Posts: 6

    Just finished my first year in the tree trimming business. My gross was about $75k, but after all business expenses (employee, dump fees, rental fees, equipment, etc.) my net was about $20k.

    Looking for people in similar situations....was this good? bad? Average?

    Any input would be much appreciated. This is my first business venture...and I really have no family or friends who have ever branched out to start their own business.
     
  2. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Did a lot of that loss in gross income come from the purchase of equipment?

    Looking at the numbers, I would guess that is the case...
     
  3. Jason Rose

    Jason Rose LawnSite Fanatic
    Posts: 5,858

    I'd say that's darn good for your first year. I'm solo and my gross isn't that much (around 65K), but my net is around 20K Can't let the net get too high or else I just have to pay that much more back in taxes...

    Sure I get pissed about having that many expences, but if I don't get somehting to show for it they just take it away from me in the end.
     
  4. prostriper

    prostriper LawnSite Senior Member
    Posts: 336

    Congratulations on finishing your first year. Now is the time for reflection on the past year. Sit back and see what you can do differently to trim off some fat (expenses), and see what you can do differently to increase sales, thus income. It is, for the most part, said that if a business makes a profit in their first years they are the lucky ones, cause 1 out of 5 fails in it's first 3 years.
     
  5. arapahoetree

    arapahoetree LawnSite Member
    Posts: 6

    Thank you all for the input! More helpful than you know
     
  6. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,838

    move over I am in the same boat, shocking isntit?
     

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