Why they say to stay solo...

Discussion in 'Lawn Mowing' started by 205mx, Mar 31, 2013.

  1. 205mx

    205mx LawnSite Silver Member
    Posts: 2,339

    Forgot vehicle insurance and tags and whatnot.

    MAYBE for a single season.
    But then... Tires. Truck, trailer.
    Mower blades
    Trimmer line
    Trimmer oil
    Trimmer replacemt
    Blower replacement
    Mower replacement
    Truck needs u joints
    Trailer floors
    Work attire and boots
    Mulch costs
    Misc tools
    Uh oh mower tire blowout
    Printer ink / stamps or CC processors
    Advertisement
    6% tax? Buahahaha
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  2. TFLE

    TFLE LawnSite Senior Member
    Posts: 285

    6% tax was just sales, the rest of your stuff is nickel and dimes stuff and there was a $300 misc. tag there. All the stuff you listed wouldn't come to more than a thousand bucks a year. Unless you have to replace a mower or truck or something. Point was if you run your business right you can see margins that high. I was having this talk with a guy that has employees and he was telling me what his margins were and I was shocked they were so low. He made a bit more than I did but at what cost. To get the work and support the employees he had to be leveraged on equipment and additional costs. Right now I like it that if things are slow I can make it a loooonnnggg time before worrying about things, I don't have 3k in bills a month. For now I will take the less stress factor for the extra 10k. But not ruling anything out.
     
  3. J & D Greens

    J & D Greens LawnSite Senior Member
    Posts: 763

    Most of the guys that are figuring out their net. Want that feel good felling that you get when you leave out little (big) things like true vehicle cost, postal box, equipment up-keep, on and on and on. There is now way some one who is cranking in close to $100 grand. Is not spending at least 1/3 of it in overhead. Before they have to pay Uncle Sam.

    When my wife shows me our true net, It can be a little discouraging, it is truly 1/2 (give or take a little) of what we bring in. But then I realize hey where can I make what I do working part-time 9 months out of the year (being able to adjust things to have family time to boot) and most of the winter off (some snow removal). Not a bad gig, but unless I take some risks like a lot of you have (swinging for the fence). I don't see myself getting rich either.

    That is what is so nice about what we do. The possibilities are truly endless.
     
  4. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878


    Not to mention truck insurance! And as the guy above said, a mailbox @ post office or ups store, etc., I could go on and on with the expenses.

    And sales tax should not be considered in your gross revenue, it's money that is "not touched" (so to speak), plus it's 7.275% here in Hennepin County in MN. I'd say the most you could net as solo grossing 90k is 60k, before you pay income taxes.


    I plan to grow my business as much as possible, 7-8 figures at some point, I'd say when I want my company to be at that level but I'd probably get laughed at by some of the people on here. I'm a firm believer in the E-Myth and with correct systems in place (I'm not saying all headaches will be avoided) it is definitely possible. I also read a good amount of books, some that are recommended by companies on here (ETW), I'm currently in the middle of "Green Side Up", great book so far. But in regards to money, I'm not one to ever be satisfied with where I'm at, there's no such thing as too much money. :D
     
    Last edited: Apr 4, 2013
  5. Greg78

    Greg78 LawnSite Silver Member
    Posts: 2,010

    I love how people always say my equipment/truck is paid off/for. Like it's a one time purchase and those things last forever never needing replaced.
     
  6. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    I think yor numbers are a little off but, even if they are correct, where's your salary? Your salary is part of your expenses. That is one factor many solos leave out.
     
  7. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Posts: 1,384

    Nailed it! Most also don't track their hours either. If a solo tracked his hours (all hours spent on the business) he would be pretty surprised at his hourly rate. I know I was went I first started.
     
  8. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    I find it funny myself. While my junk is paid off, I still look forward to buying new again in a few more years. :) That's what replacement costs are for right? :D
     
  9. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    Does anyone know where I can find that shop for $150 a month? :drinkup:
     
  10. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Nothing wrong with being a solo LCO.
    Many enjoy doing the work and want to be their own boss.

    Though if $90,000 gross yields a $60,000 net for a solo.

    Then a second truck yields another $90,000. Same $30,000 costs. After paying the employee $45,000 the business owner picked up another $15,000 net. $15,000 more and the business owner himself did not have to mow one extra yard.

    I have no desire to grow past one truck. Though if the work fell into my lap with a gowth rate that was easy to handle I do not know which way I would go.
     

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