The BIG jump

Discussion in 'Landscape Architecture and Design' started by Kent Lawn Care, Feb 1, 2003.

  1. Kent Lawn Care

    Kent Lawn Care LawnSite Member
    Posts: 69

    Just wondering what you guys spent when you took the jump from lawn maintenance into adding landscaping. im figuring about $300,000.00 ofr my plunge. also when you guys took your plunge wut equipment did you buy to get going.
     
  2. grshppr

    grshppr LawnSite Senior Member
    Posts: 301

    I spent 9,000 on a bobcat and tandem trailer. Any thing else I need , I rent. I wouldnt neccesarily go all out and buy new equipment, buy it as you grow. A bobcat is the machine I most needed, but as I do more work, I'll purchase more equipment.
     
  3. Shuter

    Shuter LawnSite Bronze Member
    Posts: 1,171

    $300,000 is alot of money to start landscaping with. Did you add a zero or are you going into heavy construction, site work and road building??
     
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Besides it being a little extreme, I highly doubt you will be able to get $300,000 at your age.
     
  5. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,740

    Is there a jump? With maintenance you develop a customer base that know you. They will expect that when they need other landscape work done, you will be there for them. You can also make recommendations and suggestions that they may want to go for. This is probably something that is already happening with you.

    Installation does not REQUIRE a lot of additional equipment. Most maintenance people have shovels, rakes, and wheel barrows. Loaders can be rented. The first important piece is a truck that dumps.

    The biggest mistake that landscapers make is to assume that if they have a certain piece of equipment they will make more money. It is only true if the equipment is being used full time. If you are doing maintenance and you do not have a crew that is keeping that mowing equipment busy all week, it is not time to equip the company with other equipment that will run only part time. The fixed overhead of that equipment is the same if it is in the garage or out working. Anything that is not out working is making it more expensive for you to operate.

    Start doing the work and when you are making enough money and have enough work to keep the equipment busy most of the time, buy it.

    That is just my opinion, not necessarilly the right one.
     
  6. Kent Lawn Care

    Kent Lawn Care LawnSite Member
    Posts: 69

    Well lets see a few of the larger items i was planning on buying wih the money was a dump truck, a stake truck, a flatbed trailer, skidsteer (used) a 20' enclosed trailer for small equipment storage. and most of all enough for a couples employees pay for a month, i dont wanta get going without enough money to pay the employees. and the rest is just for small equipment purchases. i understand you all are saying to get wused equpiment, but in my area used equipment = no business, people around here want nice looking equipment people in uniforms working on their place. anyways, i hope this explains a little more where the money is going.



    P.s. ive allready been approved for the loan so if your wondering where the money is coming from.
     
  7. PAPS

    PAPS LawnSite Senior Member
    Posts: 404

    First, find it hard to believe that you were approved for a $300,000 loan being that you're only what 22-23?, and second if what you are buying is what you stated above then why $300,000. Seems to me that that equipment would only cost around $150-$165,000. I just don't buy any of your story.
     
  8. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    Ive been in business for 20 years and had trouble getting a $40,000 business credit line. Whats your secret??
     
  9. Kent Lawn Care

    Kent Lawn Care LawnSite Member
    Posts: 69

    thats fine if you dont buy my story, thats not what im selling anyways. ive applyed through lendingtree.com. have had good luck with a 100,000 loan i got last year, so im sticking with them for a loan source. as far as the 300,000 i realize i might jusst be over shooting the idea, but i like to have enough money there for all those little hidin costs that always pop up, plus if im not mistaken dont you have to buy materials for the jobs, so ya kinda need money for that.
     
  10. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    Its not that I dont believe you, I honestly wish to know the details, ie. what type of loan, what rate, etc.
     

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