Too much emphasis on the number of accounts?

Discussion in 'Business Operations' started by georgialawn88, Sep 11, 2013.

  1. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Posts: 1,075

    I know everyone (most) determines success off of how many accounts someone has. so and so has 3000 fert and weed control accounts. so and so has 5k weed control accounts.... Why does this matter? I get the logic, the more accounts the bigger money you make. We bill 50k a month! wow hes making money. Say you take someone with 800 accounts. 2 paid off trucks and equipment working out of their garage. Do the books themselves and answer their own phone and owner runs one truck. employee runs the other. OR you take a company with 3000 accounts. Has a warehouse 6 employees all the utilities for the warehouse workman comp blah blah blah. Truck payments.... So from the outside the guy with 3k accounts looks like hes "made it" right? but has he paying all those people to work and all the warehouse payment and extra payments truck payments.... ect... but that guy running out of his garage with 800 accounts all trucks paid for very well could be making more money. plus Anyone could go get accounts. go cut the market in half with your prices. you could gain as many as you want. I get there's successful companys making bank but everyone always says the bigger the more money. I don't find this true in every situation.

    the other day I rode past where someone lives he has 3600 accounts. He lives in a 130k house . Im not saying he doesn't make $$$. He probably is. he may have a house in the Bahamas for all I know BUT if you think about it what im saying could be true right?

    Is bigger always better?
     
  2. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,347

    This ought to be good.

    I think I'll sit back and watch.

    PS Not to mention type and number of accounts makes all the difference with cash flow as well.
     
  3. greenskeeper44

    greenskeeper44 LawnSite Senior Member
    Posts: 362

    that sounds good until you get sick or hurt....and what about when you want to sell the business? What good is it without you......I hear ya on the paid off equipment and growing slowly but at somepoint you have to systemize your business so you can bring on good people to run it for you. Theres going to come a day when you don't want go treat all those yards or can not physically do it......
     
  4. Oakleaf landscape

    Oakleaf landscape LawnSite Senior Member
    Posts: 624

    This is why you have kids, or you sell it to your one employee and then he can bring on an employee.
     
  5. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,450

    Playground rules never change.
    Posted via Mobile Device
     
  6. TTS

    TTS LawnSite Senior Member
    Posts: 615

    Ok I'll bite, your example like most of the threads about this on this site has absolutely nothing to do with size. The comparison you're making is between a company that is financially well managed and one that isn't. Two companies with the same grasp on financial management the bigger company will make more, not necessarily exponentially more but it will make more. I'm not sure why everyone on here assumes that every large company will be run into the ground by poor financial choices as history proves it tends to go the opposite direction.
     
  7. 205mx

    205mx LawnSite Silver Member
    Posts: 2,340

    I think the one with 3,000 accounts could probably afford it. Sounds like he's managed his money just fine.
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  8. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,716

    We have twelve accounts, most of us care more about making money. How many accounts is really irrelevant in terms of income no matter what the companies size.
    Posted via Mobile Device
     
  9. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Posts: 1,075

    that's what im saying. people will say I did 1 million in sales this year. Well good but whats the profit. people put a lot of emphasis in sales when it seems they should be thinking profit. You can have one account if its a huge county rec dept and make serious jack or you can have 100 accounts and make nothing. Its not how much you bil its how much you make. I know pretty much everyone on LS is millionaires and genius's but people get excited about billing 20k a month. Isnt it the profit that matters?
     
  10. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    You can NEVER net more than you gross. Never.

    So if you want to make $200k a year you can't get there on $20,000, 30,000 or 40,000 a month gross. You have to both gross $50,000 plus AND manage well to make a decent living. I have a hard time making more than 20% so I need to grow to a million plus a year. I have been servicing swimming pools for four years and am halfway there. Should take about two more years. I'll let you know.
    Posted via Mobile Device
     

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