LCO's that went from 1 employee to 2

Discussion in 'Lawn Mowing' started by snowjeep, May 14, 2010.

  1. snowjeep

    snowjeep LawnSite Senior Member
    Messages: 463

    Its our busy time and this year cant keep up even working 7 days a week. How did you guys go from 1 employee to 2. Meaning not billing lawn service for 2 weeks so not much cash flow but have the work to bring another guy on. It feels like a catch 22, dont have the cash to hire the guy but if I dont I will lose some work?
  2. Raymond S.

    Raymond S. LawnSite Senior Member
    Messages: 996

    Find the cash to supplement until you can get some invoices rolling in. I carried a guy the whole month of April and am NOW just starting to get my invoices coming back (about a week ago actually.) I doubled my gross in April by having him, and I knew I would. It was hard to pony up every friday and watch the account go down, down, down, with the monthly expenses but it's pretty much money in the bank if you can swing it 'til cash starts flowing. I have a "to do" list a mile long and there's no way in hell I could get any of it done without either having someone to do it, or having someone to mow while I do it. There just aren't enough hours in the day.
    You're right, it is a catch 22. But take the emotion out of the picture and look at it from a business standpoint. If you're losing work because you aren't hiring someone, you'd better hire someone. If the work runs out, let him go if you can't carry him. You may not have the cash on hand to hire him, but you probably have something laying around you could do without to sell and bring in enough to carry you through 'til you start seeing the money coming in from the work he does. When I went full time I sold everything I had that wasn't getting used to build a cash reserve so I didn't have to dip into savings while I waited for that dreaded first few months of working and waiting on payment. It sounds crazy but at the end of the day if your business is priority one, then do what you have to do to get that helper.
  3. Cboy7

    Cboy7 LawnSite Senior Member
    from Fl
    Messages: 386

    if youve been working 7 days a week for more than 3 months why not save up some money?
    skip the dish network? maybe not buy that lcd?
  4. terrapro

    terrapro LawnSite Bronze Member
    Messages: 1,234

    Or charge more :waving:
  5. mdlwn1

    mdlwn1 LawnSite Silver Member
    Messages: 2,443

    Wait till you go for truck/crew number 2.......

    SNAPPER MAN LawnSite Silver Member
    Messages: 2,443

    Amen to that. I was looking forward to it til I actually had to do it...
  7. cozymonkey

    cozymonkey LawnSite Member
    Messages: 111

    more work does not always mean more money. You have just increased your insurance premiums and workers comp as well probably increase your fees for paychecks and taxes
  8. snowjeep

    snowjeep LawnSite Senior Member
    Messages: 463

    If I had been working 3 months I would be fine. In Buffalo we started the last week and a half of april so not a whole month of cutting to bill. I want to just do it but the comp and taxes are what worries me since I struggled when I put my first employee on. Thanks for the advice guys.

    SNAPPER MAN LawnSite Silver Member
    Messages: 2,443

    If it's just one employee then pay him cash. He will appreciate it and it will be better for you.
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    Put a guy on for 2 days / week.

    This is where I'm at.

    I got rid of a full time employee this year, went back to myself and 1 other guy.

    Now he's working 50 hours / week and I'm pushing 80-90, and my wife helps out some as well.

    I'm going to have to get a guy, but like I said, just 1-2 days for now, just to ease the workload a bit.

    I'm getting work thrown at me left and right, but as the OP, cash flow is a bit tight.

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