Is it worth it?

Discussion in 'Starting a Lawn Care Business' started by Greenatthis, Mar 4, 2006.

  1. Greenatthis

    Greenatthis LawnSite Member
    from Texas
    Messages: 24

    52 inch Scag Commercial zero turn lawn mower ( 23 horsepower, Kawasaki engine, 500 hours )

    42 inch Ariens Residential zero turn lawn mower ( 17 horsepower, Briggs & Stratton engine, very little use in the last 3 years )

    Echo commercial weedeater

    Echo blower

    Echo commercial hedge clippers

    5x8 utility trailer with drop down gate

    20 established yards

    The guy is moving and taking a different job and just wants to sell the whole business. He is asking $10,000.

    Thanks for the input
  2. Tim Wright

    Tim Wright LawnSite Bronze Member
    Messages: 1,034

    I think it is worth 10K.
  3. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Messages: 1,397

    For myself, I spend about $100 to gain 1 residential account. That makes the accounts worth about $2,000. If the equipment is worth $8000 then you have a deal.

    Another thing that you need to consider is that you will have the accounts now. You will not have to build them up to 20. If you start yourself now, you could likely have 20 accounts by the end of the year but you would be gradually getting to 20.

    Let me put it another way. I will assume that all of the accounts generate $30 per week.

    If you add 1 account per week for 20 weeks, your total gross at the end of that 20 weeks is $6,300.

    If you service 20 accounts for 20 weeks, your total gross is $12,000 - almost double.

    You may be able to do things cheaper by not buying the business but your net income will likely be higher if you do buy the accounts.
  4. Answer these questions.

    How many weeks do you mow?
    Are they all weekly accounts?
    What is the weekly gross mowing for 20 accouints?
    How many hours to mow all 20 accounts?
    What other income can you expect from those 20 accounts?

    Now that tells you your gross income.

    What conditions is the equipment in, what is it worth?
  5. Palmer'sLS

    Palmer'sLS LawnSite Senior Member
    Messages: 535

    hey timturf.....where at in central va? i am in ruckersville?

    btw..if you have the money, do it....but i had to start from scratch, and it means alot more to me.....thats how i feel
  6. Close enough to be competition!
  7. Palmer'sLS

    Palmer'sLS LawnSite Senior Member
    Messages: 535

    haha....the GC superintendent part....thats not william monroe high is it...i hope it stands for somethin else
  8. Palmer'sLS

    Palmer'sLS LawnSite Senior Member
    Messages: 535

    haha timturf, i'm only 16, and all my lawns are no threat haha
  9. Greenatthis

    Greenatthis LawnSite Member
    from Texas
    Messages: 24

    The yards average 30 cuts per year each, and he didn't unload for less than $35 per cut. The equipment seems to be in good condition, I also have a 50 in Dixon and a 50 in Cub Cadet. I only have 5 yards that I take care of, but they are pretty big yards. 3 of them take me one whole day to mow and edge.
  10. If you cut 30 times, every yard, and bring in no other income from those 20 new accounts, you gross $21,000

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