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Thinking of dropping some acts.

Discussion in 'Lawn Mowing' started by Mow Man, Jul 21, 2012.

  1. Pietro

    Pietro LawnSite Senior Member
    Posts: 857

    I had the same issue a few years ago. The problem is that in this industry startup is $$$. Machines, fuel, labor etc etc. Here is what I did, and I advise you to do. At the end of each day, add up all your gross income (For that day), subtrack labor and estimated fuel consumption. Now you can see the days profit if you had no bills. As long as youre making some money, keep things the same for now. It doesnt make sense to boot clients when youre MAKING money. HOWEVER.....the best think you can possibly do is CONSOLIDATE ROUTES. Last year I had 120 accounts. I was filling my truck 2 times a week. I fliered up neighborhoods where we have a few accounts. When I got more clients in those areas, I got rid of the further accounts. Now I do 85 accounts, fill my truck 1 time every week and a half, and make the same money. Now, the same money with less fuel consumption and wear and tear is actually MORE money. Less time driving, more time working! Hope I was of help.

    But remember, dont drop clients until you replace them.
  2. C Jovingo Landscaping

    C Jovingo Landscaping LawnSite Senior Member
    Posts: 436

    Yeah he should be 1 of the fulltimers out mowing, not just helping during the busy week each month.
    Posted via Mobile Device
  3. Mow Man

    Mow Man LawnSite Member
    Posts: 106

    Most of the comments and suggestions have been very helpful escept for this one.

    As I stated earlier, I work full time every other week (heavy weeks) at least 50 hrs on the crew plus day to day after business hours shop/office etc.. I work three days a week on the crew (on the lighter weeks) Mon. & Tues. office, estimates, follow ups, marketing etc... as well as after dinner several of those nights doing more office stuff. Clearly, I am putting in the time. Do you think I can build the business being in the truck every day? I am not tryin g to be a smart a.. , because this thread has been going along very well. I just know that my situation is not because of me not doing the work. It is clearly problems in operations and business management which is always an issue in every business. I am just looking for ways to better manage my business from those that are or have been in my situation
  4. 94gt331

    94gt331 LawnSite Bronze Member
    Posts: 1,695

    In this buisness it's hard to tell how well ur doing during ur busy months when ur busting ur butt and your paying 4 or 5 guys every week and your personal bills and on top of that your payroll taxes, workers comp, sales tax and on top of that your never ending mulch and topsoil, plants, and material acount bills every month. Alot of time you might be making the revenue and profits but the account receivables might not be coming in fast enough to cover all the expenses, that's what I struggle with every month. This buisness is an animal for sure. But at the end of the year after the bills are paid and you have some money in the bank then you made money, If you have money in ur bank at the end of the year ur making it, if not try to lean up on ur expenses and labor. Anyone that is a solo lco probaly won't have any of these problems, it's tough at ur size, in this buisiness, I struggle with it and I'm sure %50 percent of the guys do on this site also, they just won't admit it.:usflag:good luck to you!
  5. C Jovingo Landscaping

    C Jovingo Landscaping LawnSite Senior Member
    Posts: 436

    Sorry, misunderstood your earlier post. Just went back & reread.
    Posted via Mobile Device
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    If you ask me, you are putting in far too much time behind the mower and not working on the books.

    Start up cost are expensive as some mentioned but even if your equipment were paid for, it would have to be replaced.

    I have no problem picking up the small tools but likely hurt when I have to buy a new Z

    I would love to be in a position to save the money for a new one out of current operations.

    I need about 24 more accounts because I just added one guy and a helper.

    I have me, I work part time in the field, do the squirt and fert, repair irrigation and manage the front and back office.

    I have a part time guy that goes out with the crew on Mondays for a large commercial account and he assist me with Irrigation repairs.

    The mowing crew is 3 full time guys getting just under 40 hours a week with the new guy. They are slowing down to fill out their day and I scramble to keep them loaded with work. It is a tough, I need to get this guy trained and on a route. I need more accounts.

    I am generating about 3K more per month than you seem to be with one less person if I followed this thread correctly.

    The things I personally do to generate income are much higher profit, pretty much is what I get to put in my pocket too. I can schedule this activities and it gives me more free time to run the company.

    Right now my numbers are a little skewed because I have a 3.6K invoice outstanding from a job performed last month for a GC. I will get paid, I sent the the conditional waiver of lien, now I just need my check for July to look like the rest of the months this year.
  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I only have 22 regular mowing accounts. :cry:

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