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Trimming the fat

Discussion in 'Lawn Mowing' started by casey, Dec 5, 2001.

  1. casey

    casey Guest
    Posts: 0

    Was wondering how many will be trying to cut overhead & employees next year vs. expanding their operation.
  2. bruces

    bruces LawnSite Senior Member
    Posts: 648

    I just started part time this year.

    I will be looking to expand next year and go full time the following year.
  3. ronslawncare

    ronslawncare LawnSite Senior Member
    Posts: 541

    simple math

    more employees =more money

    also more employees equal more headaches

    but first you need the work to justify a employee. if your doing it partime solo is good. full throttle you would want more employees
  4. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Absolutely not. The law of Diminishing Returns comes to mind. You need to have profit in mind with everything you do.
  5. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    It will definately seperate the men from the boys when it comes down to survival in the industry. Maybe this is a good thing. Those that can actually run a business and know their expenses will rise above those that think they can.
  6. Since I have already done a cut back and clients just keep coming to me. I would say growing.
  7. ronslawncare

    ronslawncare LawnSite Senior Member
    Posts: 541

    thats why i wrote you need to have the work before hiring. if you pay your help 100.00 a day or 500.00 a week whatever and you are cutting about 25 lawns a day .at 30.00 per cut 750.00 minus 100 .00 650 left thats enough to pay your work mans comp and still have a large profit .the more work you have the more money.but if you have your guys standing around looking at you or washing your truck than you should be a solo operator.theres a company close to me that services over a thousand residentials weekly multi million corp. im convinced employees is a must.it takes money to make money.show me a solo operation that does 3 mill in sales a year.
  8. casey

    casey Guest
    Posts: 0

    Would likely be able to line up enough customers in the spring for another crew but not sure it would be worth the headaches.
    More equip, customers, employees, overhead vs. the added income of another crew.
  9. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Trust me it is not that simple. More employees does not mean more money. For a solo going to add one employee yes the equation will work if there is work, but the transition from 20 to 24 employees will not necessarily fit the equation.
  10. strickdad

    strickdad LawnSite Senior Member
    Posts: 544

    trust me lone star is right on this one. more is not always more. more most of the times is less. a company with 50 employees will never be as efficent as a company with 5 employees

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