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expand or not ?


LawnSite Senior Member
Ok the time has come for me to cross the line.
I already have enough that I have to have a helper, but the apartments that I do want me to do 14 more complexes. This will mean full time employes and a full crew.
Some of you bigger LCO's what do you recommend?
Stay small or go for it all?


LawnSite Member
Two things to think about.
First, you don't want to be doing the work yourself forever. So the size of your business must be able to give you a decent salary without you working much.

Second, The bigger the company the lower % of profit you will make. So now you have all the headaches and pressure and could be making less money. In my position I get to talk to thousands of companies and get to see what works the best.

I know two companies in particular.
One does 4 million and made a 4% profit=160,000- not bad
The second does 650,000 and makes 38% net profit(after paying himself a good salary)=$247,000. WOW
These are real companies. I know of many other companies that have results like this.


LawnSite Bronze Member
SE Pennsylvania
GlennZ: And what just is your "position" that you can justify these statements? No information in your profile, thus my reason for asking. Also, I've heard this to be true...your equations...

[Edited by Scraper on 09-21-2000 at 12:41 PM]

Five Star Lawn Care LLC

LawnSite Bronze Member
I say go For the gold. u dont want to be the little guy forever if u are planing on making a career out of your business.


LawnSite Member
I work for a unamed software company (I am not allowed to say on the forum). I get to talk to thousands of companies and we teach business to our clients. Many of our customers get this kind of result. If you would like any other info you can contact me at my personal email at glennclip@aol.com


LawnSite Senior Member

I say go for it. If you're doing enough quality work to warrant an upgrade, you should definitely take advantage of the opportunity. Just be sure you understand fully the *business* side of the industry so you don't end up paying out more in equipment and labor than you're bringing in...

I too think it sounds like a great opportunity. Just make absolutely sure that your business management side can handle it. If you haven't already, I would recommend you go to your local JC and take some business accounting classes. I took the basic accounting course a couple of years ago, and it has helped me immensly to understand this aspect of the business. In my personal experience the operators that spent alot of time managing their books and company were much more successfull and profitable than those who viewed it as a headache and didn't give it the time it needed. Good Luck!!


LawnSite Bronze Member
Don't do them without fertilizing, bark, pruning, perhaps irrigation work.

The guy that net $247,000 AFTER paying himself a good salary didn't do it by mowing only.


LawnSite Member
The company I am refering to does mowing/mulching and plant color and some minor irrigation. He is located in FL. No competition there. SURE.


Stafford Va.
I would try and get a multi year contract. If you go out and spend a chunk of money then in a year they want to change then you have a ton of equiment and nutten to do with it