who makes 6 figures? walk before you run

Discussion in 'Business Operations' started by georgialawn88, Feb 21, 2013.

  1. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Posts: 1,075

    i didnt say i didnt.... i just asked who did. goog luck reaching your goals. looks like you got a young start thats good!
     
  2. WPLC

    WPLC LawnSite Member
    from USA
    Posts: 157

    Why would you have to gross 400k to net 100k? A friend of mine just sold his business and had 60% FCF. He grossed about 500k and had a profit of around 275k. This also included snow removal though. He had one helper.
     
  3. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,716

    Install or Maintenance?
     
  4. WPLC

    WPLC LawnSite Member
    from USA
    Posts: 157

    Mostly maintenance. A few installs but it was mainly from subbing a lot of stuff out and mowing a crazy amount of lawns. They cranked out 40 lawns a day between the 2 of them.
     
  5. WPLC

    WPLC LawnSite Member
    from USA
    Posts: 157

    The guy who bought the business from him triple fliers every house in my area. Puts about 300,000 fliers out every spring. Pretty hard to compete with that..
     
  6. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    A normal profit margin is around 25%. Never trust anyones word unless you have seen the books and tax records for several years. There are ways to show more profit when selling a business.
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  7. WPLC

    WPLC LawnSite Member
    from USA
    Posts: 157

    He would have never sold it for as much as he did if it wasn't that profitable.I have talked to many guys around here, and they say they aim for 40%. Overall the main objective is a stable and concise customer base. This will result in high profitability. More equipment or a big location won't. He found ways to maximize the capacity of every asset.
     
  8. 205mx

    205mx LawnSite Silver Member
    Posts: 2,342

    Do what your doing for a few years, retain enough earning to continue to pay yourself what you do currently until profits pik back up
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  9. GMLC

    GMLC LawnSite Platinum Member
    Posts: 4,353

    I have been planning for a couple years and have savings set aside. But its still a hard call.
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  10. 205mx

    205mx LawnSite Silver Member
    Posts: 2,342

    I did 46%.... For 2012. Want to shave to 50 this year
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