New Business Obstacles - what's a guy to do??

Discussion in 'Lawn Mowing' started by ERICKS, Jul 21, 2001.

  1. ERICKS

    ERICKS LawnSite Member
    Posts: 22

    OK, I keep seeing threads where teens are moving into the commercial business world. That is great, I'm doing it to. But, I have been really hit with the real world. There are many areas of compliance that applies to the commercial world that just doesn't face a kid mowing yards.

    Most commercial accounts require $1M business liability on the operation & automobile. $300-$500/year

    My state requires a nursury dealers license if you stick a shrub in the ground. $40/year

    If I want to spray roundup on weeds, that takes a State Pesticide Licence. $180-280/year

    Of course there are city and county business licenses.

    Oh Yea, once you consider all of this, you might still need a mower!!

    I would strongly doubt if very many guys out there do. Except of course for the big or reputable firms.

    Am I over reacting and trying too hard to comply with everything??

    Do you think a minor needs that kinda insurance since I have no real assets??

    Your thoughts??

    Doug
     
  2. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Quick reply...

    The insurance is not only to protect you but to protect the commercial property that you are working at. I would say 95% of commercial properties require this insurance, so to answer one of your questions: Yes you will need insurance to work on such properties.
     
  3. i am not sure where you are from, but around here those arent the only problems we face. with pesticides now, if you pick up a TCI magazine, or Lawn and Landscape you will see how over by my house you must give 48 hour written notification to abutting properties. and even the wording to how you do that must be exact, or else you may be fined. fines over here can be, i believe up to 25K and hold jail time. then if you wish to dump any form of yard waste, you need a permit which can be 500 - 1000 a year. and then some. if you dont want to go for all the legalities right now, or if you cant afford them at this time. what i would say to you is at least become incorporated, and insured. because god forbid you do any kind of damage and you are not incorporated, anything you own, or that your parents own, may be taken from you. so you better watch out. being incorporated sets up a fake person who they would sue, if it ever became an issue. the key is though to keep your personal assets and the company's separate. because from what i hear on here if you mix things up lawyers will look for that and take your personal stuff after they have dried up the company's belongings.
     
  4. Guido

    Guido LawnSite Silver Member
    Posts: 2,085

    If your going to do it like the big boys, do it right! This thread may help some of the kids around here realize how much a real LCO's operating expenses are and why they shouldn't lowball and undercut a legit companies price.

    ERICKS, your on top of the game! Go with it and do it right from the start. You won't regret it. If you don't, your just hurting the industry. The little list you made up is part of the reason why one guy can charge $15 for a lawn when another has to charge $30 just to break even on the job!
     
  5. ERICKS

    ERICKS LawnSite Member
    Posts: 22

    Is all of the insurance, licencing and stuff very marketable?? In other words, will it help me get more jobs if I flaunt it??
     
  6. Lawnboy folks from Kansas don't have the ridiculous issues that plague contractors in the communist state of New York.

    Your legislators have passed these laws so you get what you pay for.

    I do feel sorry for the poor salt of the earth types that have to live upstate and deal with this nonsense.

    If I lived in upstate I would state a petition to be separate state from all the dead weight that is NYC and Long Island with I-84 as a boundary line.
     
  7. Bob_McNaughton

    Bob_McNaughton LawnSite Member
    Posts: 94

    Wow apparently this business has changed since I was in it 13 years ago or so. I ran 20-30 lawns a week for 2 years and never carried any insurance of any type.

    I wouldn't recommend this, as nowadays people are sue happy. But at the very least, set up a corporation to absorb any liabilities you might incur.

    When I start back up next year, I will incorporate, I may have insurance, but I certainly won't be bothering with any licenses. It would assume all the LCO's running around my area now are not licensed in any way.

    But then again, we are in communist type states like New York, California etc, like the other guy said. =p
     
  8. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    You list $820 worth of fees.

    Working part-time, by yourself, after the first week you are now in the clear til next year.
     
  9. accuratelawn

    accuratelawn LawnSite Senior Member
    Posts: 922

    Bob,
    You are going to the time and expense of incorporation, but you will not be licensed??
    Not a good business plan.
     
  10. Bob_McNaughton

    Bob_McNaughton LawnSite Member
    Posts: 94

    Talked with a neighbor that works for the city, and apparently there are no licenses required for LCO people anyway. Makes sense, why the heck would you need a license to cut grass?


    I avoid giving the man as much cash as I can, and rediculous fees and licenses irk me to no end.
     

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