Jumping from owner and operator to just owner

Discussion in 'Business Operations' started by rhatala, Mar 20, 2008.

  1. rhatala

    rhatala LawnSite Member
    from NJ
    Messages: 73

    I have been in the business just over a year and I currently have 130 residential accounts and in the process of bidding on some HOA's. Last year me and my partner did all of the work by ourselves. My question is how do you know or when do you, that it is the right time to jump from working on the crew to just overseeing the day to day operations of your business? Thanks in advance for any help given!
  2. gene gls

    gene gls LawnSite Gold Member
    Messages: 3,213

    If you have to ask, you are not ready. If I was in your shoes, then I would know your answer.
  3. newtostone

    newtostone LawnSite Senior Member
    from NY
    Messages: 681

    Youll know when your missing out on jobs because you aren't able to return phone calls. When you aren't able to keep up on your paperwork. and nothing says you have to switch out from operator to owner overnight. you can do 3 days on 3 days off. Just don't let the work you have now keep you from bringing in more work, thats when youll know.
  4. B & B Yardscape

    B & B Yardscape LawnSite Member
    Messages: 131

    When the jobs you have can bring in enough money to support you with other people doing the work.

    In other words. If you hired someone to do the labor and you were comfortable with the income, then it is time. That way you have time to go get more jobs and hire more people.

    Vicious cycle: More work, more workers, more money, more work, more workers, more money, etc.
  5. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    In general, when all of the aspects of your business starts to lack. Weather its no being able to bid jobs in a timely manor or rushing through to try and get to the next job. You might take a hit financially in the first year or two but after that I guess its worth it (if you can find decent guys)
  6. BeautifulBlooms

    BeautifulBlooms LawnSite Senior Member
    Messages: 613

    If you are servicing 130 properties and it keeps you and your partner busy for 40 hours per week then you are ready to hire someone to take that job on so you can sell more!!!!
  7. rhatala

    rhatala LawnSite Member
    from NJ
    Messages: 73

    Thanks everybody for the responses sounds like most of you are saying that if i can keep up with the working in a timly manner then I am not ready, which makes perfect sense. Thanks again I will keep all of you posted when I am ablee to make the move. Hopefully soon!!!!
  8. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    check your debt to income level and save 2 years operating cost in ready cash and invest in a few CD's and you will be fine.
  9. Frue

    Frue LawnSite Bronze Member
    Messages: 1,472

    When you are rady you will know it. Hire someone train them and then manage the business and see if you can make it in on the in come.
  10. Lance L

    Lance L LawnSite Senior Member
    Messages: 333

    i would suggest if you have a prtner, hire 1 more guy when you need one, then when its time for another you and your partner split, and have 2 2 man crews, when you get to 3 man then one of you split off and manage/sell and let your new guys take over, employees are by far the most difficult part of the biz or any biz.. your company is only as good as your workers, but if your looking for a dollar amount, i would say well for a solo op, around 250k a year is a comfortable time to split off. with a partner i dont know, i would never share the decision making... =) if something is going to fail i want to be the only one responsible for it failing, drop the partner, 9 times out of 10 its going to cause both of you problems.... and friendships

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