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A Teenager's Potentially REVOLUTIONARY Lawn Care Business Model

Discussion in 'Business Operations' started by lawnandorder2013, Jun 23, 2014.

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  1. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 10,654

    ^ this.

    And what happens if the teenagers own mowers break?

    Also remember daddy's lawn mower isn't commercial quality.
    youll have a lot of issues maintaining a group of kids who, if they want to work, actually CAN because daddy's more done broke down.

    All you need is one kid to get hurt doing the work and your world is all upside down.

    The gubber-ment isn't going to like you 1099in' teens.
    sand that's really the only way to get around the fact that "teens" cant use power equipment legally, they can work for themselves, but not for you.

    to work for themselves and BE 1099'd, they need to have their own insurance... know any kids that are going to pay the bill?

    Most insurance companies want a chunk-a money upfront to initiate a policy too. Where are the kids getting that from?
  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Messages: 19,459

    Id stick with my 17 accounts, and grow from there.

    It take the average millionaire over 25 years to get there, there is very few exceptions.
  3. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Messages: 2,763

    He did get a ride on the train ;)
    Posted via Mobile Device
  4. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Messages: 3,372

    Forget my original suggestion. Your business model is seemingly not based in realty or any known sound business practices. I will save you the embarrassment of contacting score.org This organization really want to help people that are willing to help them self's.
    easy-lift guy
  5. White Gardens

    White Gardens LawnSite Fanatic
    Messages: 6,776

    1.) There is no "Under the table" in your business model.

    2.) You would have to be a contractor, with your own insurance, and I have a feeling that it would be pretty pricey.

    3.) Your starting to sound like a national....even brickman started out in the 30's as a small company and grew into a national contractor.

    4.) Each individual will then have to have their own insurance underneath you. Their going to find it just as hard to find a carrier.

    5.) During tax time, you'll have to give a 1099 out to each of the guys who do over 599.99 worth of business each year, by law, because technically they are a sub-contractor. The government is cracking down on these and the penalties are extremely stiff.

    6.) When they screw up real bad, the liability comes down on you. You could loose everything, along with your mom and dad. I wouldn't even think of setting up anything like this without a corporation in place, a sole proprietorship won't cut it.

    I thought you had a good idea, but it just got bad, real bad.

  6. White Gardens

    White Gardens LawnSite Fanatic
    Messages: 6,776

    Bingo...... We have a winner!

  7. White Gardens

    White Gardens LawnSite Fanatic
    Messages: 6,776

    Missed this post, and it's even better yet.
  8. lawnandorder2013

    lawnandorder2013 LawnSite Member
    Messages: 12

    Your points are all very thought-provoking. One clarification: I am going to be actively mowing lawns myself, and I am in charge of the schedule and all customer service. If a worker can't do a lawn, then I need to do it myself. And if a customer has an issue, they contact me. I don't just "give" a lawn to someone to be in charge of and expect a cut of the action.

    This sounds really stupid, but let's just ignore the legal pitfalls for now. At this point, the business is very small and almost solely within the family. I have people within my family available to mow, and I want to expand.

    It seems to be that my biggest concern is the fact that workers could just do my job by themselves. Maybe they don't need me. However, I believe that I am able to contribute to the business as a manager for multiple reasons:
    A. I have spent countless hours advertising door-to-door to acquire these clients. These hours were unpaid. Many teenagers would be unwilling to do this.
    B. I have experience doing what they are doing, and I train them to do it. I have made many mistakes myself so they don't have to.
    C. I will establish an efficient procedure for mowing, leaving them to just make money without troubleshooting.
    D. I am obligated to continue to provide service to my clients. My workers can stop at any point. One of my friends who was mowing for me decided not to do it any more because it is "too hot".
    E. I handle all money. They don't need to keep track of anything. I just give them a check.

    What other things could I do to assure that I provide an effective service to my workers to justify taking some of the money from each lawn? And what fraction of the income should I take?
  9. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,862

    This forum as at least a dozen of these dead body threads laying around. They never get off the ground for a reason. If I were to highlight just one, it's the sub-contractor vs. employee issue. Research it and you'll understand. Ohio isn't a fan of such a shell game (source: I used to live in Dublin and I've owned multiple companies based in Ohio. Also, common knowledge.). Neither is the IRS.

    This seems to not be a legit business, either. First, there are at least 1.7 billion lawn care companies named "Lawn & Order". Second, it's already registered in Ohio. Time to pick a new name for your revolutionary idea.

    Sorry to burst your bubble, but you really don't.
  10. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,862

    You really should study up on Employee vs. Subcontractor definitions. Control is something you won't have.

    To "ignore the legal pitfalls for now" is really stupid, yes. You can't create a new scenario based on fantasy adaptations and workaround of current laws and regulations. They exist for a reason, with revenue through taxes being #1 on the list. Your idea fails the IRS and Worker's Comp sniff tests right out of the gate.

    Well, if you're ignoring the above realities, you might as well take 100%. A fantasy company, with fantasy scenarios, should have a fantasy payout for you. 110% would also be pretty cool.

    You just need to understand that, as you envision it, your "business model" is simply not possible. It makes asking, or answering, any follow up question an exercise in futility. Change the model, to one that is legitimate, and then work from there.
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