the numbers I mentioned was only for the lead talent (the manager/consultant)Just the opposite of what Brendon mentioned. Some individuals want to manage but not own. In Landscaping we’ve been slow and steady with growth maintaining good margins to ensure profitability. To spin something up to between 5 and 10 million will take lots of capital. Probably more than what Ted mentioned or at least that amount year over year. You’d need to increase capacity by adding staff (recurring costs), equipment and facilities. A manager might want a piece or profit share but may not have the desire or means to finance that type of investment. Maybe no appetite for the risk. Not sure what it’s worth for a true GM. I would agree with Green Mentorship’s numbers on The operations guys. Operations and General Managers are two different animals though.
I helped found a company in a different industry (IT consulting and cyber security). We accelerated the growth and rapidly got up to some substantial revenue with decent profitability. Multiples of what you asked about. Agreed that the overall scope is different, but we have technicians for network maintenance and engineers for network build outs and infrastructure projects, salespeople for making deals. Very parallel type of setup to Landscape Contracting with some maintenance and some installation. At the higher revenue numbers with multiple divisions at work you end up needing mid level managers at pretty high cost, especially if you want productivity and accountability. That’s no different in our industry. If you can find the GM, they would have to be able to build this out. In my experience, it took all of the things you mentioned depending on the person and the skill set. Multiple $150k employees, some equity splits for those interested folks, great benefits, competitive commissions for the salespeople. There was no magic bullet, it took teamwork, and in our case time. Sometimes you find guys who can build out the operations but maybe not the sales team. Rare to find folks who can do it all well, even for bug money. You’d need to find a GM candidate who knew his or her strengths and weaknesses. And, like Ted said, could help keep decent margins the whole time. Otherwise, why do it.
Not the investment or scaling or other payroll for scaled up employees (like division managers or field supers)
1-1.5 million is a GM (or consultant) over a 7–10 year period of time.
Which is what it would take , coming from 1-1.5 million
IF the goal is growth plus increased margin.
A GM like that is going to bring the blueprint with him.
It’s borrowed or learned from somewhere else and incorporated into your setting.
This is done in the restaurant and bar industry all the time.
The GM has the recipe for the training, hiring, firing, implementation and execution of the whole thing.
that’s what the OP is looking for.
If you just wanted to hire a manager to run the systems and/or operator you build (ie a baby sitter) that’s completely different and can be had for much less (50-75k)
But that person doesn’t come with “everything” we are talking about or the OP is looking for.
business development, systems structuring, HR blueprints, etc that’s all expensive.
no one with that is coming to the table for 55k
55k gets you maybe a 28 year old kid with a degree in hort that hopefully can identify a couple dozen plant species and can pass a pest applicators class.
if anyone thinks they’re turning over their revenue generation and the responsibility of protecting the company net to someone who is going to accept 55k for 5 mil in revenue... that’s literally financial suicide.
just an HR Manager would run you about that (maybe a bit more)