How long do new start ups last on average ?

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paulsgrass

Banned
Location
Bradford Ontario
For those of you who have been on here a few years how long does the average startup company last ?

For example a single man operation ? Those with full time jobs doing this on the side ? Those who start too big with too many expenses ? Or any other unforeseen circumstances.

ETC.
 

Carolina Cuttin' Company

LawnSite Bronze Member
Location
Swansea, SC
For those of you who have been on here a few years how long does the average startup company last ?

For example a single man operation ? Those with full time jobs doing this on the side ? Those who start too big with too many expenses ? Or any other unforeseen circumstances.

ETC.
Let me add to that question: How about those who start small, pay cash for everything, and keep expenses as low as possible? How long do they last. How many of them last?
 

GRANTSKI

LawnSite Silver Member
Location
Ct Shoreline
The guys that pay all cash and operate with “no overhead” in my opinion tend to be more prone to fail as their business grows. Owners get used to pricing like they have no overhead - but as you expand - you WILL have overhead no matter how you do it. Profit margins get lower and lower the bigger you get .
statistics :
20% of small businesses fail in their first year, 30% of small business fail in their second year, and 50% of small businesses fail after five years in business. Finally, 70% of small business owners fail in their 10th year in business
 
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paulsgrass

paulsgrass

Banned
Location
Bradford Ontario
The guys that pay all cash and operate with “no overhead” in my opinion tend to be more prone to fail as their business grows. Owners get used to pricing like they have no overhead - but as you expand - you WILL have overhead no matter how you do it. Profit margins get lower and lower the bigger you get .
statistics :
20% of small businesses fail in their first year, 30% of small business fail in their second year, and 50% of small businesses fail after five years in business. Finally, 70% of small business owners fail in their 10th year in business
Are those stats. specific to lawn care or general new businesses ? If not specific to lawn care those stats are useless. I have been in various businesses over the years. First year is a loss, second year is a loss . If everything works out and you are lucky ( luck is a BIG factor ) you will start seeing profits business growing after the 3rd year. A new business has to be in a financial position to take a loss the first 2 years.

That is a life lesson for younger people reading this.
 

caseysmowing

LawnSite Silver Member
Location
Staunton VA
All depends on the person.....
 

GRANTSKI

LawnSite Silver Member
Location
Ct Shoreline
Those stats def apply. Too many ppl think it’s easy. But to scale it to a reliable/ streamlined business isn’t so easy. Like you said figure on not making much $ the first few years . A lot of ppl don’t believe that and after a cpl years of working and nothing to show for it - they quit before they even get a tax ID so that’s why you never hear of them. Also the % that succeed almost always have failed and found a way to come back from serious set backs. Those big hits that can and will happen require alot of patience and problem solving as well as long term thinking that a lot of ppl just don’t have. I know personally 4-5 that failed without even thinking hard about it and I live in a very small town.
 

grass4gas

LawnSite Senior Member
It doesn’t matter what business you’re in. be it the green industry, the restaurant industry,
the Waste industry, etc...BUSINESS IS BUSINESS. They all have their own set of problems and issues that need to be addressed at times.

If you don’t know your numbers, work your numbers, and protect your numbers, guess what, your days will be...
 

JFGLN

LawnSite Silver Member
For those of you who have been on here a few years how long does the average startup company last ?

For example a single man operation ? Those with full time jobs doing this on the side ? Those who start too big with too many expenses ? Or any other unforeseen circumstances. ETC.
I see the part timers come and go and I hear somewhat often about solo guys closing down because they needed a steady job with benefits.

It's a good business for solo guys if the wife has a job with good benefits like health insurance.

I rarely see someone starting out going "all in" and starting a lawn business from scratch with a big cash investment.

Back in 2008 some of the install companies went bust or tried to get into the maintenance business.
 

Matthews Lawn Care

LawnSite Gold Member
Location
Neosho, MO
It doesn’t matter what business you’re in. be it the green industry, the restaurant industry,
the Waste industry, etc...BUSINESS IS BUSINESS. They all have their own set of problems and issues that need to be addressed at times.

If you don’t know your numbers, work your numbers, and protect your numbers, guess what, your days will be...

That's just it. Too many people think just cuz it’s a “lawn biz” that general biz practices don’t apply. They don’t look at it like a “real” biz and that’s why they “really” fail.
 
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