Take Home Pay????

Discussion in 'Starting a Lawn Care Business' started by kirkmue, Jul 10, 2013.

  1. kirkmue

    kirkmue LawnSite Member
    from Ohio
    Posts: 6

    For you guys that have been doing this a while...based on gross revenue, what % is your average take home pay? I am not asking profit margin for the business. I mean your net take home, after taxes, the amount you put in your pocket and live off of. Last year was around 30% for me...thoughts?
     
  2. 205mx

    205mx LawnSite Silver Member
    Posts: 2,346

    That's high. Congrats
    Posted via Mobile Device
     
  3. kirkmue

    kirkmue LawnSite Member
    from Ohio
    Posts: 6

    Well, I am a small company so it makes sense that it might be high. With a lot of the work falling on my shoulders. Thanks tho.
     
  4. dllawson

    dllawson LawnSite Member
    Posts: 172

    This is a very difficult question to answer. Generally, as a business grows the owner will take a smaller percentage of the gross income.

    An owner doing $50,000 a year with no employees may bring home 70% percent of his gross. $35,000

    An owner managing and doing sales for a $500,000 business may only bring home 20% of his gross. $100,000
     
  5. kirkmue

    kirkmue LawnSite Member
    from Ohio
    Posts: 6

    Ok thanks...that is kind of what I thought. I was curious for myself....and I was looking at a business for sale that had a couple hundred thousand in gross sales and claims the take home is about 50%. Does not seem very likely unless the prices are through the roof.
     
  6. dllawson

    dllawson LawnSite Member
    Posts: 172

    50% take home seems pretty high for that size of business. He could be obviously be lying but it is possible he could be taking that much money out. If he is telling the truth he is either doing very high end/high quality/high profit work, or he is working 70 or more hours a week.

    It should be pretty easy to tell by checking out some of his work and more importantly checking out his books and bank statements.

    If i was looking a business that size the first thing I would find out is if he has 1 or 2 good crew leaders and how long they have been working for him. If he has good crew leaders that are interacting with his customers then there is a good chance of a smooth transition and you keeping most of his accounts after the sale.
     
  7. Caddyshack Lawn Care

    Caddyshack Lawn Care LawnSite Senior Member
    Posts: 734

    100% is around $50K for me. Out of that I pay $15K in taxes, $350 for general liability insurance, $2K in fuel, another $500 in misc. (shoes, socks, trimmer line, parts), and maybe $1K put toward new equipment as needed (zero some years, $5K other years). I should (but don't) factor the cost of my vehicle because I'd have it regardless. So my take-home is between $30K-$35K most years.
     
  8. dllawson

    dllawson LawnSite Member
    Posts: 172

    Thanks for making me sound like I know what I am talking about. What do I owe you?
     
  9. APS_NYS

    APS_NYS LawnSite Member
    Posts: 5

    If you do not mind me asking.... How many accounts or properties are you servicing to reach 50k?
     
  10. Caddyshack Lawn Care

    Caddyshack Lawn Care LawnSite Senior Member
    Posts: 734

    I try to keep around 45 accounts. Sometimes I'll let it get as high as 50 but I try not to since I'm solo. But right now, with no rain, I'm not doing much so I'd have no problem taking on more. I picked up another 2 just yesterday, knowing I'll regret it once we start getting more rain.
     

Share This Page