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Potential To Purchase Business

2846 Views 142 Replies 28 Participants Last post by  JawT
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My buddy called me and told me his yard guy is retiring and moving. Said he’s going to sell his equipment and potential to take over his contracts. Has about 50 clients that he takes care of. His equipment is less than 3 years old. 52” ZTR has less than 50 hours and the 32” has 75 hours. All service has been done on the equipment at the local dealer where he bought the equipment and trailer which is a 6x12.

He hasn’t put it for sale or told anyone else about it yet so told me to think about and let home know. He didn’t give a price yet either. Majority of his work are residentials with only a couple of larger properties. His residentials are about $40-$50 range but always gets a tip.

What do you guys think would be a good offer to take everything off his hands?




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PearlWhiteGT, Didn't you recently post about starting a side hustle " Going in with my buddy" ?
So, i seems you have no experience, you can't really be serious about buying this company. Please correct me if I am wrong.
You are correct. But I want to do this alone. The owner is willing to help me out with everything he can. I wouldn’t be able to take on all his clients but I’d like to do the ones in my area. He has about 20 or so real close to me. Small yards which I have lots of experience with doing my own.

He would take me to meet all his clients and then up to me to get their work.
Guess it all depends on the price.
My buddy said that he told him $7500 but he didn’t give me a price yet. Told me to think about it and let him know if I’m interested and will go from there.
He’s only been doing it for less than 3 years. Pretty sure he wasn’t doing 50 yards the entire time. He lives real close to me and said he has 15 yards in his neighborhood. Those are the ones I’d be interested in. That’s about 2-3 miles away from me.

I know the equipment isn’t high quality but feel that $7500 for everything even if it didn’t involve the potential clients is a good deal. Here in my area I could sell everything individually and make a decent chuck of money. But I’d like to try giving the mowing business a try. 20 yards would be max for me.
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Thanks fellas for all the advice. I know the equipment is not high commercial grade stuff but for starting out and only wanting to do this part time I feel like it should fit my needs. I’m not looking to be mowing tons of properties, my plans are to be very picky on the ones I do mow. I work a full time job and make decent money. The mowing is just for some extra money in my pocket. I don’t need it to pay for bills or anything like that. I just like the idea of making some extra money on the side.

We own a Scag Patriot ZTR that we use for personal use and out at our ranch. I may look into selling the 52” Woodlawn and using the Scag when needed. Majority of residential yards in my area are small. The 32” stander and push mower would pretty much take care of them.

I know I have lots to learn and it’s very different from mowing my own yard. I do have 5 friends of mine who all do it part time and are willing to help me. It’s great placed like this site that helps a lot too. I’m scared and nervous out taking this leap but I’ll never know if I don’t try. Can’t fail unless you try first. My wife and daughter are very supportive of me trying this out and that alone make me feel good.

I won’t be taking on all his customers, will meet with the ones that have properties close to me. My best friend who is in the business as well is willing to go out with me and help get started. He’s also willing to take on any of the customers I don’t want. He more full time and can take on much more work. Thank you all for the advice and guidance, this may or may not work out as planned but it’s worth a shot. I’ve always told my daughter you’ll never know unless you try. Now I have to live up to my own advice.

I will be testing out all the equipment before making the purchase and be going with him to the properties.
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I do plan on doing a LLC and getting liability insurance. Will be contacting my auto insurance provider to see if they offer anything for my truck which is my daily driver. Will be opening up a business account with one of my local credit unions, most likely a federal credit union. I’ll be taking baby steps in this industry, not trying to go full force in. I have lots to learn and will take it day by day.
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PearlWhite GT, Good moves on your part. Please remember with you LLC, if you use a personal credit card for a business expense, that action will pierce your LLC liability protection.
Thanks for the info. So get a business credit card is the way to go.
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Do you guys prefer steel toe type shoes when out mowing or just some regular type comfortable shoes? I wear cowboy style boots and work boots daily but can't see myself wearing them to be out mowing. Prefer something that is really comfortable nut just not sure if I should be looking for something with a steel/composite toe.
I asked the owner if he has his clients on a schedule of some sort or do they just call when the tard needs mowing. He said a little of both. And that some just trust him to go and mow when he feels it's needed. Wouldn't it be better for me who is starting out as a solo part timer to take on the ones who are close by me and on a schedule? They're also all cash or check paying clients.
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Thanks fellas for the great advice. I plan on meeting with him later today to discuss some things. Route density and having them on schedule is what I feel like work best for me. Plus, I'm not really looking to take on too many starting out.

Any advice on what questions I should ask him when meeting?
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I went ahead with the purchase of the equipment and list of his customers. He drove me around to all the properties and I was able to get the addresses on them. He doesn't have any contracts in place. All these customers of his have been with him for a couple of years. Total properties of 45.

He doesn't really have them on a bi-weekly schedule but does go and mow them about every two weeks. They trust him to mow when it's ready. Some will call and want it sooner and some will wait till they think it's ready (which is overgrown) to call and ask for him to mow. He does have a really good working relationship with all his customers. They usually leave him cash or a check under the mat or pay via venmo. He uses a free invoice app that sends them an invoice for every cut.

I liked that he has about 25 residentials and one commercial lot all within a 5 mile range of my house. I don't like the lack of a structure business. I would like to set them up on a schedule of some sort and not do any of the call when ready. How would you guys recommend to approach the customers and ask about putting them on a bi-weekly schedule? He has something that works for him but doesn't work for me since I'm part time and I know people don't like change so will possibly loose some of them which I'm perfectly fine with.

Any advice would be much appreciated. And do any of you guys use any type of invoice apps? I like the idea of them but want something that is simple.
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He's contacting all of them and letting them know that he is retiring and is referring me. Giving them my contact info so they can reach out to me directly to set things up if they choose to. My goal is to get them on some sort of a schedule and if any of them don't want to be on a schedule then I won't take the job.
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I'll get with him to drive around and meet with the clients. He has a few yards that need mowing already and he already gave me the equipment.
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I had to take care of two residentials yesterday. I didn't take any of the equipment I purchased due to not having any test time with it. Just took my push mower, weed eater, blower, etc. Both yards were overgrown which took me a good while to get done.

These two customers don't appear to be on some sort of a maintenance schedule, more of a call when it's needed which means overgrown. If I can't get them on a schedule, I'll let them go. Have another one to take care of today as well. Pretty sure it will be overgrown too.

What I learned yesterday, it's totally different from mowing my own yard which I can knock out quickly. It was not fun at all. I was extremely exhausted and had to take a few quick breaks to drink some water. I'm located in Corpus Christi, TX and it's crazy hot with super high humidity. I was drenched in sweat after my first yard was done.

I have TONS of RESPECT for all you guys who do this as a business. It's not the mowing that is the issue for me, it's the high heat and humidity that kicked my butt big time. I'm not going to lie, when I got home yesterday from mowing I was calling it quits. Was ready to give my friend the work and sell everything. However I woke up this morning and told myself to give it a try for about a week or so before making my decision. Much respect fellas, you guys are some bad mofo's.
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Just got a call from one of his clients who has been with for almost 3 years which is when he first started. She asked if I wanted to continue to mow their property and I said sure, that I would go out and take a look at it. It was mowed last week so she said anytime next week would be good.

They were only getting charged $30 for their property. Have a pool in the backyard with just couple of small spots of grass that a push mower should take care of easily. Mainly the front yard is cutting.

Depending on how the property is in person and if I feel like the price needs to be bumped up to $40 should I do the first cut still at his price and then let them know that if they want me to continue it would be $40?
Yeah, when he drove me around I was asking him what’s he been charging for each property. He’s basically been charging $20 for the front and $20 for the back. He’s prices range from $30 - $50 on the residential’s. Yard’s really ain’t that big to be honest. $50 is the average for front and back according to my friends who have been doing it for some time.
Thanks fellas. Excuse my ignorance but what does EOW mean? How would you adjust pricing for homes with pools in the backyard? These yards are small. I think $45 for front and back is average in my area. But if the backyard is only about 1/4 grass should I still charge $45?
Thanks, had one of his customers (older couple) who he told me calls when the grass is usually high message me asking how much go mow their yard. Drove by and yup grass is high. He was only charging them $30, I told them $45 and haven’t heard back since. No biggie to me.
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I hope it works out. The equipment has to be worth $4k.

It would have been better to “work” for him one day to get a feel for these accounts.

I think it’s cool you are continuing to post. You can make a living mowing. I have been for 32 years now.
$4K only? In my area the Worldlawn 52" and 32" ZTR, Stihl FS 91R, Stihl FS 111RX, Echo PB 225LN, Echo PB 2620 and 6x12 trailer is worth much more than that.

I agree it would had been a good idea to get a feel of the accounts but I'm only interested in the ones that make sense for me. Not trying to take on all his clients, especially the ones he hasn't raised the prices on since he started.

I love this forum, tons of great advice and knowledge. I have no problem posting and asking questions and not scared to let you guys know if I fail at it or just wasn't for me. If it turns out a failure maybe it will teach someone else not to make my mistake.
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