Ongoing Expenses

Discussion in 'Original Pictures Forum' started by grassmeister, Feb 10, 2005.

  1. grassmeister

    grassmeister LawnSite Member
    Posts: 73

    I've read posts where people discuss accurately understanding their operating costs. I'm considering starting out doing all the work myself and owning all of my equipment. This means no salary expenses (other than my own) and no equipment payments.

    The main costs that I can see would be gas, equipment maintenance, advertising & insurance. It seems like the expenses are fairly low and that most of what you earn is profit. Am I missing something? The reality may be very different and I'd like to hear from those who have been doing this a while.

  2. AL Inc

    AL Inc LawnSite Bronze Member
    Posts: 1,218

    Hi Grass, I just wanted to point out that while you own the equipment (no payments) you still have to charge for it. You want a return on your investment in equipment. The money to replace that mower, for example, when it is worn out, has to come from somewhere. You can work out your daily cost per machine so you know how much to build into your overhead number.
    Don't forget about any of the smaller costs, too. Such as mailbox rental, dues for association memberships, cell phones, etc.
  3. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    Pick up a book from a local bookstore on how to write a business plan. You will be surprised about all of the expenses that you don't think of. State filing fees, vehicle maintenance, phone calls, driving to give an estimate, renting equipment, DMV fees for trailers and vehicles, TAXES, accountant and/or attorney fees, collection agency fees, it goes on and on. So yes, I beleive you are missing quite a lot.
  4. slow release

    slow release LawnSite Member
    Posts: 94

    Where's your pics, am I in the right forum???
  5. AL Inc

    AL Inc LawnSite Bronze Member
    Posts: 1,218

    I just noticed that, beautiful pics of ongoing expenses!

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