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My Oh My where did the profits go?

Discussion in 'Lawn Mowing' started by J Hisch, Nov 29, 2003.

  1. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    Well, it's the end of the year and for those who have been in business a while you might be saying where did the profits Go? Growth might not always mean bigger profits. As we all grow so do our expenses. When I was by myself mowing and minding my own business always had huge balances in the Bank. Disposable cold hard Cash. However as we have grown the revenues are great, but it seems like what comes in must go out. I have hit a plateau now I have the ability to move to the next growth spurt where I will once again experience the huge bank balances but for now until that time comes. I am saying oh my where did the profits go? Trucks fuel, Insurance, worker Comp. repairs, payroll, taxes, supplies the list goes one. Anyone else feeling the growing pains. My salary is bigger of course but the company books seem to be at all time low. 2 more years and back to the high life.
  2. locutus

    locutus LawnSite Bronze Member
    from NC
    Posts: 1,266

    I know where mine went, two vacations, new equipment, a/c evaporator core (house), driveway extended etc. Next season I'm running tight. No frivilous expenditures.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    J Hisch
    I Figured out long ago that next step up your contemplating wasn't worth the wait for me. More employees more ins. more of everything including more work, which is good but with that comes more stress which leads to more health problems ,higher premiums etc. So I went the other way downsize! 4 employees and when I did the bottom line stayed where it was it just did'nt cost me as much. So I guess my bottom line actually grew by doing less.
  4. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

    Cut free one boatanchor guy and REVENUES yes actual REVENUES went UP!!! Profits WAY up!

    We got more work done in less time!!! Now, this was a guy who caused other employees to socialize, was a drama queen, always in other people's business.

    Then cut another, even more work got done.

    Then yet another, and yes even more got done.

    Cut one final slacker/instigator, and we levelled out at a crew of three, still getting the same amount of work done.

    Boy, I love that extra $6000 a month that was going to wages and breakage. We break less equipment now and get more work done.

  5. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    I was thinking about the same topic earlier today. Its so easy to keep your eyes focused on more accounts, bigger mowers, and better equipment. Sometimes we lose focus of the simple things that drive us to be entreprenuers. Making money and enjoying what we do is the key. This season I got so caught up in buying new things that all my profits went right back into the business. I had little to take home in my pockets each week. Next year I am going to focus on keeping everything paid off and I am going to save a lot of money. Good luck to you all!
  6. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    Good thoughts. That's the bad part about this business you cant see every crew every minute. Cellphone are the big one that takes away from work time. I cant understand why they think they can answer there cell phone anytime it rings. Had to make the point that at other jobs just becasue your cell phone rings dosent me you could answer it. Outlawed employee cell phone personal use. they had girlfriends calling, bookies or whomever. The crew leaders need to get more guts. I dont know how to help them build backbone?
  7. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    Keeping an eye on your bottom line turns into a monthly thing, then a weekly thing, then eventually a daily thing. Knowing where every penny goes is not always easy, but like Albemarle said, sometimes cutting people loose is the only answer...growing your company should be calculated and steady if possible.
  8. bluemoon7

    bluemoon7 LawnSite Member
    Posts: 55

    Great thread. We are a two man operation and at years end you really wonder where it all went. Maintenance, supplies, ins., all really add up. We are going to try and tighten things up next year as well. Sean, great post. It is harder but more efficient to look at expense and cash flow on a daily basis. At years end its hard to make adjustments. When you reveiw it daily, it makes it easier to make the changes needed to see a bigger bottom line.
  9. locutus: "Next season I'm running tight. No frivilous expenditures."

    jajwrigh: "Next year I am going to focus on keeping everything paid off and I am going to save a lot of money."

    That's been my New year's resolution every year. I hope you have better luck keeping that pledge than I have had.:D

    J Hisch, I'm not feeling the growing pains, I'm feeling the growing relief from downsizing like Albemarle Lawn and olderthandirt.
    Sorry you're not getting a lot of support on this thread. I've always thought Lawnsite was comprised of two distinct types of LCO's. The people in business having others do the labor, and the guys with green shoes and dirt on their hands.

  10. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    I got dirt on my hands, It just easier for me to down size and wash my hands, than expand and keep steppin in sh*#^t.


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