Net Profits? How much could one really make?

Discussion in 'General Industry Discussions' started by emil35, May 12, 2006.

  1. emil35

    emil35 LawnSite Member
    Posts: 213

    Hello:

    I'm currently a senior in high school and have been doing lawncare since I was about 10, really got into it when I turned 13, and alot more once I turned 16 and could drive. I run my business part time for the most part, but do it legally with insurance and everything else. Right now we got a lot of lowballers in the area that are driving prices really low, so low that I'm unsure if it's worth keeping in the business. My question is, that if I was to make this my full time career after college and got crews going for mainteance, then got into the landscape install and other services (chem. app, etc.) and then maybe opened up a landscape supply yard and nursury as well, what could I expect to make myself. I know of businesses in this industry that make hardly anything and others that do millions a year. I like doing the work and owning my own business, but I want to do something that I can make alot of money with when I'm older so I never have to worry about it. I'm just looking for ranges or whatever anyone has to input. Thanks
     
  2. emil35

    emil35 LawnSite Member
    Posts: 213

    Just for kicks, does anyone think that it would be possible to make $250K or more per year in this industry having a business setup as I described before? I know I could never do that right off the bat, but after some time (5 -10 years) could it be a reality or not? Thanks
     
  3. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    Yes, very definitely. Its a business like any other, many owners of one business make that much. You have described at least three different companies.

    Right now you are setting a financial goal that you think will make you happy. Maybe that amount will make you happy maybe not. A business affords you resources that may not show up on your income that you report to uncle Sam but are at your disposal. Like the trip to a warm place in the winter for a conference, or the company truck that you use during the week and then take hunting or that pulls your boat on the weekend.

    Don't worry so much about the payday in the years to come but enjoy the journey along the way. The key is to do what you love and you will never work another day in your life. Sounds idealistic but its the truth. So if you like this type of work then you are way ahead of most people.

    250-k is not that much for even one well run business of any size.
     
  4. cessnasovereign

    cessnasovereign LawnSite Senior Member
    Posts: 292


    That's right! I never thought I'd enjoy this as much as I do. I mean the money potential is endless. I'm almost 21 years old and have always wanted to do security, I did that for a year, I've also always wanted to work at a funeral home, I did that for a couple years, I've always want to own a business, and here I am! I loooove being my own boss. :cool2:
    My personality is such that I have a really hard time taking orders for someone, I'm more of a leader and here I can do that. I have a professional setup, truck and trailer and this is my first year by myself..
     
  5. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    250k in your pocket will be a lot of work and probably 5-10 year minimum depending on what route you take ...slow and steady growth can help you reach that but if you decide to just just explode the business with a big investment and heavy heavy advertsiing then you can achieve the goal alot sooner
     
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    oh, yea, i was a great success in the lawncare industry. i made great money, loved my work, and had complete control over my operation. i just, decided to quit, yea, that's all, no reason, i was a great success, i just quit:rolleyes:
     
  7. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    some people might want to go out instead of mowing at the age of 13 ever think thats the reason he stopped? and im sure success at age of 13 is diff than success at your age he probably had lawn a day
     
  8. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    There are two kind of lowballers in this world:
    The lowballing Lco, and the lowballing customer...
    I find it is a two-way street, one would not exist without the other.
    So, let them fend it out amongst themselves, your mission is to cherry pick those customers you want to work for, at your price.

    That's my attitude, let them work for free for all I care, I'm charging what I charge and it's take it or leave it.
    - I show up, I do a good job, I keep them not only on a schedule but I am honest so if someone overpays or there exists a question, I can backtrack payments and deposits and jobs all the way to day 1, and will not, will never use information against the customer but use the information I find as presented, whether it be in my favor, or theirs. If it can not be determined from the information available whether money is due this way or that, I may let them keep it or I may offer a compromise deal, depending on the amount.
    I don't sell stuff to the customer. I do suggest from time to time certain specials, such as fertilizing the whole yard for 30 dollars, stuff like that... But if they don't want it or if they have Chemlawn, I won't even try.

    And to me that's worth the extra, believe you me.

    As for how much you can earn... How many trucks did you have in mind, how many locations were you planning on opening, did you have plans to go nationwide? I suppose in the end a multi-billion dollar corporation is not out of the question, except for time and to some degree motivation, but it's not motivation alone, it's also how big you want to get.
     
  9. fulano

    fulano LawnSite Senior Member
    Posts: 319

    I know next to nothing about lawn care, but I can't see anyone making a net profit of near $250K in 5-10 years unless you have a lot of start up capital. In my mind you'd have to have at least three crews cutting $1000 of lawns each five days a week for a 6 month season. That is around $360K then labor costs,taxes, personal property, city, county, insurance, gas, and everything else and you might make around $100K I'd guess.
     
  10. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682


    in my second year profit is about 90-100k but i have a partner so 50% of that is mine ... i can easily expand that to 250k just off maintenance with only 2 crews going out in 2-3 years... i am in a good area but choose not to because im 21 and still go out every night and get ****** up and i have a second business to run... when the time comes to expand we should achieve the goal easily
     

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