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Business Proposition from my Brother. Need Help.

Discussion in 'Lawn Mowing' started by Adam3669, Sep 4, 2007.

  1. Adam3669

    Adam3669 LawnSite Senior Member
    Messages: 311

    Alright, my brother and his partner are both 22 and have their own lawn company. They are currently cutting about 43 yards at about $35 a yard. They have a 2007 Silverado, trailer, and two zero-turn mowers. I also run my own small business.

    They are wanting to start getting out of the business, and have proposed to partially give the business to me, as in I would be doing all the labor, and they would send out bills, do advertising, and generally take care of customers. Eventually in the next year or two they would completely hand over the business to me. Right now, this is what they are proposing for this upcoming season:

    You get $10 for every yard, so if you have 43 yards
    It equals $1720 a month

    Plus expenses you don?t pay
    3 gas fill ups $210
    Truck $650
    Gas mowers $100
    Others $50
    Total $1010

    $1010 + $1720 = $2730 what you really make which is almost 50%


    Does this sound fair?
  2. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Messages: 3,556

    only way I would do it is if you could cut all of them in 8 hours. other than that no. also get paid in advandce. Or just offer them 6 grand for the accounts.
  3. Adam3669

    Adam3669 LawnSite Senior Member
    Messages: 311

    43 in 8 hours...i don't think so. I would be busting ass to do it along with school.
  4. Ric3077

    Ric3077 LawnSite Bronze Member
    Messages: 1,113

    I would try for 50% of each lawn plus the other extras already mentioned.
  5. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,645

    get it all in writing- how much, when they get out, etc. get it signed by you and them and keep a copy in a safe deposit box at a bank. also- bear in mind that many customers have a relationship with them, not you. don't be surprised if 15-25% of current clients quit when they stop seeing them. this is a great deal for them- they will be able to cover thier payments and expenses, and get some money over the next 2-3 years and they can earn other money elsewhere.
  6. acm8705

    acm8705 LawnSite Member
    Messages: 71

    You would be better off buying the business from them.

    They are getting the better end of the deal as it stands right now. They are making money while sitting at home and you are busting your butt.
  7. Dunn's

    Dunn's LawnSite Bronze Member
    Messages: 1,534

    Yeah it doesn't sound like they are handing the business over to you, as much as it sounds like they are trying to bring you in as a employee/subcontractor.
  8. T Total Lawncare

    T Total Lawncare LawnSite Bronze Member
    Male, from The deep south
    Messages: 1,378

    Well depending on what he's making now with his own buisness it might not be such a bad deal. I mean he is paying zero overhead. All he has to do is be the warm body riding the mower. He doesn't pay for gas, truck or mowers, and nothing for advertising. Nothing wrong with his brother benefiting off this deal too he's only paying for EVERYTHING! Don't be so greedy.
  9. The Captain

    The Captain LawnSite Senior Member
    Messages: 607

    Sorry if I burst your bubble Adam, buy it outright. Lessons I've learned over the years have taught me never go into business with a family member unless it's your father. Someone in the group will feel being taken advantage of and soon the deal divides a family.

    Sounds like your brother and his partner are looking for an employee rather than a buyer for the business. If you're going to be doing all the work, why do you need them?

    Best think about it real hard.....The Captain
  10. bj1bmx

    bj1bmx LawnSite Member
    from NJ
    Messages: 76

    no way. if you could average 2 yards per hour including the drive time, you are making $20 an hour. what could you be making if they were your lawns outright? $70 minus expenses. even if your expenses were at 50% of gross, (which is rediculous for a single man operation), you would still be earning $35 during this time. essentially, you are earning approximately 40% less by working for your brother. make them an offer to buy the accounts (for a price of several times the per mow charge) and then you wont have to deal with the hassle of being in business with a partner. or go get some more accounts on your own....

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