New to the board, first season in business...

Discussion in 'Starting a Lawn Care Business' started by BestBuddies, Nov 21, 2011.

  1. BestBuddies

    BestBuddies LawnSite Member
    Posts: 9

    Hello,

    I'm new to the site but love what I have read so far.

    This is subject to anyone's opinion but would like to get your feedback on how I have done so far in my first season without getting into TO much detail.

    1)Saved $11,000
    2)bought and paid for about $8,000 in equipment
    3)salary is about $500 per week (since march 1st till now.)

    I have about 30 solid clients and pick up a new one about once every two weeks.

    Any advice would be greatly appreciated.

    Thank you
     
  2. Vabrit

    Vabrit LawnSite Member
    Posts: 9

    Congrats, I know I would be happy with that progress.
     
  3. BestBuddies

    BestBuddies LawnSite Member
    Posts: 9

    Thank you,

    I just want to get a feel for where everyone else was at during this time. I assume I'm ahead of the curve and happy but would like tips/advice on what would be the next step.

    I had somewhat of an edge being a college graduate with an accounting degree.

    As of now I'm working on next years plan and getting another crew out there, I give out about 40-60 hours a week in labor hours
     
  4. FoghornLeghorn

    FoghornLeghorn LawnSite Senior Member
    from Texas
    Posts: 751

    The fact that you can even draw a salary from your company the first year says you're doing pretty well.

    My first year was really rough and didn't seem like it would ever pick up.

    Good work. Even better job that you're able to employ a crew and help them provide for their families in these tough times.
     
  5. BestBuddies

    BestBuddies LawnSite Member
    Posts: 9

    How did you pick it back up and what type of struggles did you have?

    Word of mouth has worked best for me but fliers have worked somewhat well also
     
  6. Agape

    Agape LawnSite Bronze Member
    Posts: 1,645

    according to my math and assuming the $500/week is purely from weekly maintenance accounts you are charging $16.66666666666666666 per week (if theres not a 5th week in the month), minus expenses uncle Sam wants 40-50% of whats left over so I don't think you're going to be happy at years end.

    My advise to you would be that now that you have a good base of accounts, I would start in the spring, charging what you would need to have a couple guys,(not yourself) service the lawns on your new accounts, and once you have quite a few of those...send a price increase letter to your old cheap accounts.

    here is a copy of one I sent at the beginning of this season to a customer that I waaayyyy undercharged because it was my first year in business and I really wanted the account.


    Dear Mr. Vetter;

    I will no longer be able to service your property at its current rate.

    When I started your service, my labor cost was low. However, recently I have begun to expand my business and I am to the point where I need to bring in regular, full time laborers in order to keep up with the work load.

    The current price is not allowing us to spend the time we need in order to continue to give your property the quality of service that you would expect from a professional landscape service provider.

    Your new service rate would be $245 per month (or a $20 week increase) In order to continue to service your property at the high standard of service that it requires.

    The new rate would be effective starting August 1st

    Thank you for your business,
    Don Bullis, Agape lawn service


    ( I expected to loose him but thought it was better than just ceasing service, he didn't even flinch and said "ok")
     
    Last edited: Nov 24, 2011

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