My personal take on success/growth/profitability/business

Discussion in 'Business Operations' started by georgialawn88, Jan 2, 2014.

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  1. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,438


    Its better to build your "wealth" outside of the business. Trucks and equiptment are assets that go down in value.

    Ive been solo for 7 years, and if necessary I could hire a helper if need and still do ok.
     
  2. Glenn Lawn Care

    Glenn Lawn Care LawnSite Silver Member
    Posts: 2,647

    Some good reading here.
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  3. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,202

    A stand alone property that is rented to your lawn care company is how many cpa's would say to set it up as. Is that the outside wealth?

    How long would you do ok for? Could you update your equipment trucks as much as you do now or would it need to be cut back? At what point would upgrades be, behind?
    Posted via Mobile Device
     
  4. sehitchman

    sehitchman LawnSite Senior Member
    Posts: 754

    This is the conundrum most business owners go through. The return on investment decreases as the size of the operation grows. I've been a risk taker for most of my life. I got to where I disliked the baggage employees brought to my business. Plus trucks and equipment are going to last about half as long if you are not eyeballing their use everyday. So plan on replacing everything twice as often. I really enjoy the solo life I have at this point in my life, but I'm always looking for the next opportunity. The key is the employees, not as much the money or equipment.
     
  5. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 871

    Only 5% of businesses ever break the 1 million mark. The inability of the owner to let go is the reason why. The owner thinks he's the only person capable of getting things done or tried to delegate once but got burned by a bad hire and can't trust anyone again.

    The only way to get through this is to find people who can do things better than you and who don't need to be managed. Will the folks you hire mess up sometimes? Yes, but you've got to push past that. If you suffer the short-term challenges of bringing someone up to speed, your life will get a lot easier and your company will be able to tackle bigger projects and contracts.
     
  6. newguy123

    newguy123 LawnSite Bronze Member
    Posts: 1,094

    Very well said sir! Most owner/operators think they are the best at their job...and may very well be right. But if your goal is to build a business as opposed to a job (depending on what you want) you will have to relinquish control and hire competent people and train them as such.

    The best business owners typically aren't the best or smartest in their field. But they've hired the most intelligent/capable to fill their shores while they "manage."

    Great thread though!
     
  7. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Just because trucks & equipment drop in value that means someone shouldn't build their business more?

    Every company in the world faces this issue with whatever equipment they have, whether it be a construction company or a software engineering firm, that's why you make money with your equipment, not only to meet overhead, direct costs, & post a profit but to replace said equipment.

    If you're looking for examples of landscape companies that build their wealth within their company, take a look at the top 100.
     
  8. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    I'd also like to add, directly from E-Myth in the section "A Note from Tony", he states, "Entrepreneurism is the way to build wealth. And yes, you can make all the money you and your family will ever need in the landscaping business. I am living proof."
     
  9. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Posts: 1,075

    Where can i find this list of top 100? I'm interested
     
  10. GQLL

    GQLL LawnSite Senior Member
    Posts: 845

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