What do you think of this deal?

Discussion in 'Starting a Lawn Care Business' started by spitfire3416, Jul 29, 2013.

  1. spitfire3416

    spitfire3416 LawnSite Senior Member
    Posts: 518

    The guy wants $4500 for 40 accounts. They gross about $1100 a week in cutting and can be cut in 10-11 hours with 2 men. Would you take this deal? What contingencies should there be when signing the contract?
     
  2. Vecchio Lawn Care

    Vecchio Lawn Care LawnSite Senior Member
    Posts: 905

    Sounds pretty good if the customers stock with you
     
  3. Colaguy

    Colaguy LawnSite Senior Member
    Posts: 599

    What contingencies should there be when signing the contract?


    Clients stay with you for at least (1) year.

    No compete clause.

    Make sure all job descriptions are included in contract. You dont want to be surprised later aka "other" work, clients said so n so included.

    Make sure the guy informs the (40) clients you are taking over.

    and.....
     
  4. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    40 lawns in twelve hours is pretty awesome for 2 guys
     
  5. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    $1100/week for 40 lawns is $27.50 each. Seems low.
     
  6. Pressedun

    Pressedun LawnSite Fanatic
    Posts: 40,769

    According to what the numbers say, that's $50 per man hour, not too shabby at all.
     
  7. GOATMAN GEORGE

    GOATMAN GEORGE LawnSite Member
    Posts: 88

    They must be postage stamps if they can do 40 in 12 hours.

    If this is legit you get the clauses & a meet N greet to every customer, this is an amazing deal that I would never pass up.

    He wants only slightly more than 1 months gross? Wtf?
     
  8. Penncare

    Penncare LawnSite Member
    Posts: 179

    Often we forget that if it sounds too good we need to do extra research and work: 1. look at the books(everything available, bank statements, contracts, debts, etc., if they exist. 2. personally inspect every property and determine if the client expresses approval of you providing service. 3. spend a little and have an attorney prepare the contract and advise you of any legal issues as it is much cheaper and less difficult to deal with issues up front, 4. determine if two people are needed to service the accounts unless you already employ one or more other than yourself, 5. determine if you have the time, manpower and equipment to properly service the accounts, 6. ask around about the seller, 7. assume you will lose some of the accounts, and don't be afraid to ask anything you want to know. The non compete clause provisions are essential and should at a minimum restrict the seller from any involvement in lawn care related activity including, but not limited to, acting in the capacity of owner, employee, consultant, or investor. Include a requirement that he will be responsible for any action to enforce the non competition clause. A duration and geographic provision is vital as well but on the whole enforcement in a small business setting is often a costly and aggravating process. I could go on but this should suffice.
     
  9. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Posts: 1,304

    I would want to ask if that price is strictly for maintenance. If there are dandelion sprays, weed spraying, fertilization or anything else in that figure it could be deceiving. You wouldn't want to see a 27 dollar per lawn average and find out that half include spraying dandelions and fertilization or something like that. Make sure to ask lots of questions. On the surface this seems like a great deal to walk into!
     

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