What would be the net profit?

Discussion in 'Lawn Mowing' started by Vassk1, Aug 27, 2005.

  1. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    I have come up with a scenerio purely for arguments sake. I am sure I will get a few different answers depending on how efficient you each consider yourselves.

    This is for a one man show owner operator. It takes 30 minutes to service the lawn including drive time. He mows 15 accounts a day, 5 days a week for a total of 75 lawns. We'll say average price of account is $27. We will also say company is in SW FLorida on a 40 week schedule.

    This leaves us with revenues of $2025 a week and $81,000 a year.

    My question is this: In your experienced opinion what how much would be the expenses for this business. Remember, it is a solo operation with no payroll. I figure the expenses are primarily gas for equipment, maintanence, insurance, phone, advertising and what ever else you can come up with. Please do not include any health insurance. Assume all the equipment is paid for. Also assume no storage space is needed for equipment. You may include licensing fee if there is one as well.

    THank you.
     
  2. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    40 looks and nothing. Wow.
     
  3. Wells

    Wells LawnSite Member
    from SLC UT
    Posts: 0

    What kind of equipment?
    21" mower with 5.5 HP or a 72" ZTR with 28.0 HP
     
  4. CuttingCrew

    CuttingCrew LawnSite Member
    Posts: 193

    First off, your equipment is never paid for. Even if you pay cash for it you must stick money away for replacement.

    My spread sheet figures, based on the way I operate have you pulling about $50.00 per hour based on 7.5 hours (15 30 min. lawns with drive time) cutting per day and 0.5 hours for unexpected things.

    $80,000 a year gross.

    Based on my equipment list below (with a hydro 36) and a new, F-250 bare bones work truck, life expectancy of 4 years on all mowers and truck and trailer, a 6X14 enclosed trailer, 3 years on all 2 cycle equipment (thats pushing it), $1000 per year on advertising (low) with all MY cost for insurance and so on (most things not listed. If you want a copy of the spread sheet, e-mail me).

    Cost of doing business= $17,642 per year
    35% for taxes= $21,823
    Net money to you= $40,528

    For what its worth, I've put a ton of time into figuring the cost of doing business for me, but it may not even be close for you and I'm sure it still needs some fine tuning when I get my final numbers at the end of the year.

    Mike
     
  5. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    Thanks for the info.
     
  6. Runner

    Runner LawnSite Fanatic
    Posts: 13,496

    What are your Consumer bills? How much time is spent at the shop? How much are your office costs? How much are your administrative costs? How long does it take to do the paperwork and billing? What type of system is in place (program,...etc.).
     
  7. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    you just described my business, before payroll. except my lawns average $30, and there is other work as well, but, just using your numbers- your total overhead, if u used the same stuff i do, will cost you ABOUT $10,000 a year. you can draw a paycheck of $71,000. this is taxable income, and the amount of tax you'll owe will depend on how many dependants you have, etc, etc
     
  8. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    How many cuts do you have each year up in NJ?
     
  9. ProLawns

    ProLawns LawnSite Senior Member
    Posts: 476

    I've been averaging between 50 to 60% of my gross receipts being my gross income.

    example, $100,000 gross receipts = $50-60,000 gross income
    your net income from this amount will vary depending on your personal
    deductions.
     
  10. ProLawns

    ProLawns LawnSite Senior Member
    Posts: 476

    I forgot to add. That's with one part time employee most of the year.
     

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