What is the goal.......

Discussion in 'Lawn Mowing' started by 1MajorTom, Jan 24, 2006.

  1. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    to having a large lawn company... I understand the positives of running a company with employees. first and foremost, the load of the work will be carried by them, not the owner. having employees can open up new opportunities, more jobs can be taken on, and more revenue can be generated (now understand that I don't ALWAYS believe that to be the case, because i don't care what anyone says, some of these dimwits that have employees AREN'T making MORE money. it's about costs, and not every owner is smart. so I don't buy into the fact that every company with employees is doing great.) So let's reiterate, the goal of a company with employees is 1. let the owner MANAGE the company, not do the actual work. 2. employees provide a security blanket if the owner falls ill, and 3. employees if the company is managed correctly, meaning cost effective, can make more money than a solo guy. Ok, I got that...
    but is the GOAL of an employee based company to sell off the company and make big $$$'s once the owner retires? Sorry, I don't believe it. Because you tell me who would have enough money to buy a huge company? what would happen would be this: the company would end up splitting up everything.. sellling some accounts to this person, some equipment to this person, etc etc etc... I do not see a HUGE PROFIT going to the owner of an employee based company once he retires.
    Did I just read someone say that a SOLO company will have a large grass asset to sell (being sarcastic), and rather implying that the employee based company would be where the $$$'s would be... oh peelease, give me a break... there are definitely positives to having employeees, but if you think you will become a millionaire selling a big lawn company, sit back down.
    Agree or disagree?
     
  2. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    ***deleted***

    Of course the large company is worth more than the solo LCO.
     
  3. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    You hit the nail on the head Jodi.

    kc
     
  4. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    It's only worth what someone will pay for it. If no one wants it..... it's worth NOTHING.
     
  5. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    That was exactly what some of my point was going to be, because what if you have someone that's just looking for a turnkey operation, work part time and doesn't want people around to look after.

    He's not after the large company.

    But he'd be willing to pay $XXXXX for a solo job.
     
  6. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Its an interesting point. IMO it would be easier to sell a solo operatioin vs. a company with lets say 6+ employees.
     
  7. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    An even HUGER company??? :p At least in this area, I've seen sizable LCOs sell to larger outfits. These are doing mainly commercial work however.

    Any well-run, profitable business will attract buyers. Unfortunatly there aren't too many of those around. Most guys that get into this line of work, and other types of service industries, do it to make better money than their previous job. When they begin to grow, they may (or may not) realize they don't know much about running a profitable business. I think that's why so many LCOs have major troubles when they expand.
     
  8. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    In regards to equipment, yes. But the law of diminishing returns plays in here. If you want to be small,good. If you want to be large, good. But lets be realistic about perceived value of a business. You make money now not at retirement when you sell in this industry. The goal is to bank as much cash as you can now and be smart with your investments and branch out into other ventures, if that's your style. I see this industry as an opportunity to be able to expand into other areas of income - that is thinking outside the box. Your own personal goals are that, YOURS.

    kc
     
  9. MJLsLawnCareNmoreLLC

    MJLsLawnCareNmoreLLC LawnSite Senior Member
    Posts: 841

    Jodi, what's the case with John Deere? Are they going to be a sponsor of the site or is it just a short term thing? The reason I ask here is because there have been a couple of threads concerning the issue and it seems as if the moderators are avoiding it. There is no announcement or stickies at the top of the pages even though there has been a banner for several days now.
     
  10. Justcutitshort

    Justcutitshort LawnSite Member
    Posts: 187

    forgive me, but this sounds like a multi-part question with such a wide avenue for answers, I suggest narrowing the post to specific question.
    In reality, I'm not entirely sure what direction you are heading with your post. Would you mind simplifying things for a farmer from the plains.
    Thank you sir
     

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