If i Gross 50k a year

Discussion in 'Starting a Lawn Care Business' started by KcLawnServices, Feb 9, 2006.

  1. KcLawnServices

    KcLawnServices LawnSite Member
    Messages: 42

    Just wanted to know what I can expect to net at the end of the year ? I know I have to pay social security,Fed taxes,state taxes..I have a pretty tight route..Thanks for any help
  2. BCFLawnLandscape

    BCFLawnLandscape LawnSite Senior Member
    Messages: 333

    Depends on how many lawns you have and what other services you offer. If you say you have 20 lawns... no way you'll make 50k... you gotta give us more details!
  3. sgallaher

    sgallaher LawnSite Senior Member
    Messages: 265

    Even with more detail it is a hard question to answer. Only you know what your costs are and how much you charge and how much you want to be paid.
  4. cleancutccl

    cleancutccl LawnSite Senior Member
    Messages: 698

    your net income depends completely on your expenses. There is no way any of us can know those. Were you in business last year, set up a budget from last year's numbers and that should get you really close.
  5. maintenanceguy

    maintenanceguy LawnSite Member
    from NJ
    Messages: 156

    Operating costs for a one man operation. Note, these are "real" costs:

    1. A good family medical program - $800 per month minimum.
    2. Vehicle, gas, ins., payments, depreciation, tires, tune up, repairs, etc. - $670
    3. Office supplies including stamps - $30
    4. Acct and attorney, if and when needed - $50
    5. Magzines and books $20
    6. Business taxes - $100
    7. Telephone - $50
    8. Cellular phone - $100
    9. Seminars and Trade Shows - $125
    10. Uniforms - even just jeans and shirts - $45
    11. Small tools - $15
    12. Software and upgrades - $30
    13. Marketing & Advertising - $200 (minimum - will be much higher if you don't have a customer base)
    14. Office Equipment depreciation - $75
    15. Liability Insurance - $300
    16. Workers Comp OR Disability insurance - $125
    17. Bad Debt - $100
    18. Guarantee work $100 (cost of doing something again to keep a customer happy)
    19. Future Capital Expenditures - $100 (money set aside for the new mower you'll need in 5 years)
    20. Bookkeeping - ($150 per week) $650 (or do it yourself at night after working a 12 hour day)

    So that's $3685 in expenses each month or $44,220 in expenses each year. BEFORE YOU MAKE ONE PENNY! You could get by on less but for the hard work, and the large risk involved you ought to be making as much as the guy who has a regular job. I think these numbers are fair and I've probably missed a few things.

    None of this takes into account the fact that you probably don't give yourself any of the benefits a "regular" job would get you like sick time, vacation time, paid holidays, etc.

    I ran a struggling business for several years. The above numbers are realistic and very hard to overcome. A few of the guys in the landscaping business build a large enough business that they do very well. The vast majority barely stay above water and struggle to make ends meet. It's a tough business because you're offering a comodity that people really don't need, they could mow the lawn themselves. And every laid-off factory worker with a lawnmower is competing with and underbidding you.

    Oh, to answer your question: Of the $50K you'd make, $5,780 a year. And 15% of that would go to the IRS as "self employment" tax. The good news is that take home pay would be so low you probably wouldn't owe any additional federal taxes. Yippee!
  6. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    If I went by your $44,000 in expenses, I too would get out.

    Those are overinflated numbers for someone doing $50,000 a year gross. Your numbers are way off.

  7. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821

    A well run operation could easy have expense total's less then 44k .Id say a net of 30k on a 50k gross is very obtainable.

    Like another poster commented, we can't figure your net, we are not privy to your expenses, etc.We can only put forth conjecture.
  8. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    I agree with your numbers with a well run operation.

  9. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    22500.00 if you have 45 % profit , thats a very hi profit margin for a business

    30,000 at 60 %
  10. PMLAWN

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    Your net will be less than 50K:p

    But really you have to know YOUR overhead, If you are just starting I would believe less than 20net because of all the start-up costs. But only you know that

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