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Too much overhead??

Discussion in 'Business Operations' started by lennonpaul, Jan 8, 2002.

  1. lennonpaul

    lennonpaul LawnSite Member
    Posts: 28

    I've been in business for two years now, this past year I dedicated a bit more time to it. Im a solo operator which has help from time to time, but IM definitely running my self into the ground with all this work. Anyway IM not sure if Im overdoing it on the overhead, or maybe i'd like to just be debt free quicker, dont know. BUt heres my lineup
    86 f150 with ez dumper
    86 f150
    94 New Holland Skidsteer L553
    150gravely 50" deck
    troybuilt 33"deck
    tractor lawnmower 46"
    2 ryhobis weed wacker
    1echo weed wacker
    stihl 025 chainsaw
    2 backpack blowers redmax & poulan
    Billgoat 16 HP tailgate debris loader
    Little WOnder 19 hp blower
    5x12 open trailer
    8x20 pintle hook trailer 6 ton


    I havent used the skidsteer all that much but can i really get my money out of it , considering its expense and i have to have commercial insurance to drag the trailer its on. Did i make the right choices? any suggestions
    thanks
    paul
     
  2. Lanelle

    Lanelle LawnSite Bronze Member
    Posts: 1,361

    It's a little hard to tell how you are doing without knowing what type of work you are doing and the size of the projects. Can you give us a better idea of the work that you are doing?
     
  3. lennonpaul

    lennonpaul LawnSite Member
    Posts: 28

    i do a little bit of everything. I mow, mulch, trim bushes, brush clearing, aerating, leaf removal, grade lots, small tree removal, etc....
     
  4. Mechanized labor is where this industry is heading.
     
  5. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,706

    This isn't overhead, this is production equipment. Why don't you go buy a sliding miter saw to do decks and a wet saw and a tamper to do pavers and a tree chipper and power washer to do houses and a backhoe to excavate and a towable BBQ to cater on the weekends. Get the idea? You have to decide what it is you really want to focus on and sell off the un-needed equipment or hire another guy and put some of this stuff to work earning money rather than let it sit around.

    Why does one guy need 3 weed wackers? Are they junk and 2 are in the shop or are you too lazy to change from a trimmer head to a saw blade for clearing brush?

    You have money tied up here that isn't being utilized to your best advantage. Sell off the least used stuff and buy something you'll use more. Sell off the multiple or junky pieces and put the $ in your pocket or buy one brand new, productive and reliable piece. Then you'd only have to maintain one thing.

    Your fragmented and out of control.
     
  6. Harold, tell us how you really feel..........

    I was thinking the same thing actually, except this is what I was thinking......A FRIGGIN SKID STEER!!!!!!!!!!!! WHY?????

    If you aren't running that skid steer on a daily basis or at least a couple days a week, get rid of it.

    If you ARE running the skid skeer daily or couple days a week, get rid of everything else and just do skid steer work.

    Pick something, do it well and you will prosper. Do not spread yourself out into "jack of all trades, master of none". In my honest opinion that is a little self-defeating. Read my past posts and you will see that I speak from experience on this, my concentration level on my core business sometimes is VERY LOW and it hurts my profitablity sometimes.

    good luck.
     
  7. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,706

    Is it the moon, or a personality disorder or because my back hurts today???
     
  8. lennonpaul

    You're on the right track wanting out of debt.

    The solo operator's going to have relatively more equipment per person than an LCO with employees. So the interest on money is going to be a bigger factor for us.

    Do you have too much equipment? I don't think so, but I'm a self admitted equipment junkie. LOL

    Dave
     
  9. lennonpaul

    lennonpaul LawnSite Member
    Posts: 28

    thanks sprinkler guy for your input, i bought the skidsteer because I got it at a good price and i figured i could turn around and sell it and not lose any money a little later if it didnt go well. Its been sitting a bit for being such an expensive piece of equipment. I thought i would eventually start using it in which i am but.. probably not enough too compensate for the extra insurance coverage and monthly payments i have on it. I bought it for $9000, and it only has 900 hrs on it
    thanks paul
     
  10. rodney

    rodney LawnSite Member
    from sw,ohio
    Posts: 103

    paul
    is pulling that new holland to much on a f150 ?
     

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