[Fawcett]

I've been working under someone for the past 3 years. I've been the foreman for the last 2.5years. I also have a business degree and I am ready to use it. I have some side customers and I am looking to get a commercial account from my Uncle which alone could come out to around $24k for a 26 month period. The work through my Uncle will take me between 2 and 2.5 days to complete.

Like many of you, I have a boner for Walkers, I've got my eyes set on the MT with a 48" deck and 26hp efi motor but the overhead that comes with it is scary. In the past I've used a 48" belt driven Lesco and I'd like nothing more than to work from the seat of my pants. I find the warranties that follow new equipment very assuring, it can nearly guarantee that I will have working equipment for the season.

Here is my figurative overhead if I finance the Walker and combine it with everything else I need to pay for.

Total Monthly Costs: Fuel 560
Mower Payment 300
Truck Payment 300
Health Insurance 300
Cell Phone 70
Total $1,530
Total Expenses Per Year: ($18,360)

Total Projected Income on 18.2hrs @$50 per hr over 26 weeks $23,660 (only my Uncles work)

Total Projected Income on 35hrs @ $50 per hr $45,500 (Granted that I can find a few more customers)

Total Projected Profits Based on 18.2-35hr weeks $5,300-$27,140

What do you guys think? Too much overhead? If I got a walk behind I would be limited to the amount that I can grow but I would see profits much much sooner.

Fred

 

[Puddle of Oil]

i think your in way over your head bud! to me thats to many "Projections", i think your setting your self up for a disaster just on that alone. whats wrong with used equipment?

 

[Fawcett]

Hey Andy, I agree with you 100%.
Going only off of some forecasted numbers is rediculous and dangerous.
The figures I got for my Uncles properties were based off what he pays two of his employees: a combined $40 per hour wage for three 8hour days spanning half of a year (26 weeks).

He has some big projects comming up and the guys he has used to landscape his properties are highly skilled frame and finish workers who took on the landscaping to keep busy during slow times. My sales pitch will be to point out that he will have a better bottom line if he kept those employees in their specialized fields (framing and finish work). Since I've got an idea of what he was spending to maintain all 14 properties, I know where to start bargaining from and I can underprice the work those two knuckleheads were putting out.

The mower they were using was a 36" Billy Goat which suited some properties well but was undersized at other sites. Whatever I get I'll have a 48" deck which will cut 25% more grass per pass and give me that much more of an advantage to make money.

I don't have anything wrong with used equipment. If I found someone in my area selling good stuff cheap I'd go for it. Unfortunatly anyone with good equipment is getting ready to use it, everything I've seen has 1300-2000hrs on them and for me thats a ticking time bomb. With new warrantied equipment you get atleast one season to pay as much of it off before you have to replace consumable parts.

 

[Fawcett]

Has anyone else financed a big loan to pay for equipment? How has it worked out? Am I crazy to think its possible to do now and make a profit?

 

[KeystoneLawn&Landscaping]

Sounds like a great way to fail in business! Too many assumptions.

 

[AOD]

^ - Financed a mower

^ - Pulls the financed mower around with a $250 truck ('93 Dodge)

 

[unkownfl]

Finance the mower. You can easily make 1500 a month even working for someone. You will always have that mower as an asset of course it will depreciate but you will be able to write that off if your business fails or prevails. Don't count on your Uncle. Project what you will make without him. I think 1500 is very easily obtainable especial with your knowledge from being educated and work experience.

 

[djagusch]

24K for 26 months equals little under 1k per month but for rounding lets say 1K per month. Now at least 4 weeks in a month or $250 per week.
2.5 days for $250 or $100/day.

$100/day equals a better deal working for McDonalds.

There is no money in your uncles project. An 8 hr day costs about $24 in mower gas. Break down that mower payment per week would be $75/week and then the truck payment another $75 per week equals no money.

 

[Fawcett]

djagusch: This work will take me between 2 and 2.5 days. I've been looking at this as my starting point in the landscaping business and I'd grow from there. After mowing the 14 properties I would be billing my Uncle $850+ for the work. Your math is spot on, haha it would be hard to get out of bed to make that kind of money!

I appreciate reading everyone's comments. If anyone has any success or horror stories it may do me good to hear them!
Thanks

 

[sunray]

where's your business insurance, knock someones widow out or worse run their dog over.
Always have money figured for the unexpected, it will happen.

 

[Puddle of Oil]

alright heres a story for ya! im good friends with a guy in the construction business and he was telling me about one of his big competitors. he said this guy had everything, top of the line trucks, equipment, very expensive house he had it all. seemed like he was doing pretty good for a couple years...................then the economy hit the crapper. he lost his equipment, truck, house, everything! now he's barred in dept! it only takes one small pebble to shut down a big operation like that. i know thats the construction business and not landscaping but as far as business management goes its the same in every industry! your plan just sounds so easy to break! good luck this year!

 

[THEGOLDPRO]

you know what they say about assumptions....

 

[bigw]

I did it :weightlifter:

 

[M&SLawnCare]

Do not finance, or buy something you can't afford, untill you have the customer base to support it. Thats a lot of money your talking about that you don't need to spend with no garentees on income. Buying equipment under the assumption you'll have the work to use it on is the fastest way to fail.

Buy used equipment to start and then upgrade to new if you want once you have the work. Look around, their are plenty of deals on good equipment out there.

 

[Southern Elegance]

did it, wish i didnt, but i survived

walker is a high priced mower to start with though. not very fast either. but they are awesome.

 

[AA+ landscaping]

Here is what I did, I was a 13 year honda tech. making around $70,000 a year, I love working on cars. I am a true car guy but I always want to go to the next level. Like foreman then manager, but in that line of work it's all about how long you've been there not the knowledge. So I started working nights and weekends cutting grass, lawn cleanups, etc. First, I bought a new 48 inch walk behind, a trimmer, a blower, etc. I also bought a used pickup truck. The second year I purchased a new backpack blower, another trimmer, a bed edger and hedge trimmers. Then at the of end 08' I bought a new dump truck. For 09' this was my year to go solo I just had to much lawn work to do at night plus I didn't think it was right or professional to be cutting at night between 5:00- 8:00pm. Also in 09' I bought a new trailer, a toro grandstand and some small things. Note: I only made around $1200 a week. It was very hard but I made it work. This year I bought a new lazer, enclosed trailer, a backpack blower and some little things. I also hope to add a full time employee and add around another $1000 in customers with advertising such as flyers etc. Note: I also plow snow in the winter. I wish you the best in your endeavors. It takes is a lot of hard work, honesty and some good luck along the way helps.

 

[djagusch]

djagusch: This work will take me between 2 and 2.5 days. I've been looking at this as my starting point in the landscaping business and I'd grow from there. After mowing the 14 properties I would be billing my Uncle $850+ for the work. Your math is spot on, haha it would be hard to get out of bed to make that kind of money!

I appreciate reading everyone's comments. If anyone has any success or horror stories it may do me good to hear them!
Thanks

$850 for 2 days work is ok (set a goal of $500/day for 5 days). But how many months are you working during a season? Do the mower and truck payments stop coming when you don't work in the off season? I just spread out your income for the 26 months. If your season is 6 months and you make $425 a day, 2 days a week, for only 6 months. That income needs to cover costs for 12 months actually so it's only $212.5 per day.

Will this account help you grow, sure, but will it cover costs and a livable wage, no. You need to get accounts that equal his pay for the rest of the week's work and you should make it through the season.

 

[lawnkingforever]

That is way too much stuff to finance for that kind of income. You could make that kind of money with an old Craftsman pushmower, a used 48'"WB and a 5X8 trailer to haul it with.

 

[unkownfl]

Fred never said he wasn't going to take on new customers!!! with the equipment and applying some of his business and working skills Fred could very well make 50k a year first year out. Just because it was hard for you doesn't mean it will complicated for him to acquire customers. Fred has had his foot in the door for a few years already mentioned in his first post.

 

[djagusch]

Fred never said he wasn't going to take on new customers!!! with the equipment and applying some of his business and working skills Fred could very well make 50k a year first year out. Just because it was hard for you doesn't mean it will complicated for him to acquire customers. Fred has had his foot in the door for a few years already mentioned in his first post.

Think about his first post 24K for 26 months, 2 to 2.5 days of work. His first 2 to 2.5 days will equal 12K for a year. So for the rest of the week if he makes the same amount it would only be 24K in a year. He needs better paying accounts for the rest of the week and fill it up.