Growing - How fast is too fast?

Discussion in 'Lawn Mowing' started by Lawn-Scapes, Dec 4, 2004.

  1. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Messages: 2,810

    I'd like to grow my company. I'm getting tired of doing the work solo. I feel I have the equipment to double my work load for next year and would like to double again the following year. I plan to have 2 crews of 2 and myself doing extras and filling in where needed. Is this feasible?

    My goal would be to gross $300,000 with the above mentioned. What kind of numbers can I expect to net/profit? I'm figuring at least half to be paid out in payroll and my salary.

    Is this realistic?

    Interested in whatever thoughts anyone might want to share...
  2. Mowmoney00

    Mowmoney00 LawnSite Member
    Messages: 134


    All I can say is "do what you feel comportable with"...some people can handle stress better than others. Believe me, as you grow there is defenitly more stress added.

    Your plan is feasable and you'll be there before you know it. Just always try to keep in mind the quality that you want to offer your customers. Your employees will not have the same frame of mind that you do.

    As far as your question goes...remember to always try and keep your payroll expenses (employees salary, taxes, workers comp, ect.) below 20%. Of course this does not include your salary. Depending on how you structure your business, you may want to take whats left from the so called "bundle of money" or you may want to pay yourself a set "salary" and start building net worth in the business. Most self-employed guys take whats left for awhile.

    As long as you do quality work and be true to your customers, you should have an increased work load for along time. God bless and I wish you the best of luck!!!!
  3. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    growth is only bad when mismanaged. Most try to grow by providing more services to their exisitng clients base which can work but you need more manpower for this type of growth. (most small companies need the manpower before they can afford them) Another way to grow is only to provide a few simple services but for more clients. For example just mow trim and blow. Sound to me like this would be your best way to grow with only five employee's. tryong to do too much to soon is the key to failure. Keeping your services streamlined right now would be best and increase your customer base.
  4. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Messages: 2,810

    Wow.. below 20%? It looks as though I may have to be the 4th person to achieve that number. :(

    Appreciate the replies. Looking for more.....

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