Potential To Purchase Business

2191 Views 117 Replies 28 Participants Last post by Toro44, 19 h ago

PearlWhiteGT

Discussion Starter · 8 d ago

3

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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· #21 · 7 d ago

I’m like minded with @Derwood, I’d be reluctant to buy without trying both equipment and people.

I’m not trying to be snarky, but that set up is what I see around me in various forms/ makes with weekend guys. The cons of the world lawn stuff seem to be a lack of integrated dealer support. They seem to be near the price point of the Bradley mowers, which has a following on here, but if I understand correctly, are copies or rebranded older mower technology.

having that low hours would seem to indicate he doesn’t mow a lot, but they look well taken care of. I don’t believe the equipment is worth the $7500, but that’s my opinion. Good used equipment is at a premium mow, but as said, I don’t have any experience with it, and rarely see any on rigs in Tulsa or okc.

Reactions: 4

Mark Stark

· #22 · 7 d ago

I've never seen World Lawn equipment here before

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Mike N

· #23 · 7 d ago

Mark Stark said:
I've never seen World Lawn equipment here before

Rochester Mower in Hilton apparently carries them.

hal

· #24 · 7 d ago

They're decent basic mowers, great for beginners, have used them in the past

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knox gsl

· #25 · 7 d ago

I'm not sure what your background is but mowing for income is different than your own place. Getting a good pace and keeping it in August is hard. Can't just stop and go inside to get a cold drink or skip trimming till tomorrow. my best suggestion is to go work a few days with this guy and feel out the work first.

Reactions: 5

PearlWhiteGT

Discussion Starter · #26 · 7 d ago

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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hal

· #27 · 7 d ago

This is good, just don't go in debt for it, own it and use it to pay you back first....

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Derwood

· #28 · 7 d ago

PearlWhiteGT said:
I just like the idea of making some extra money on the side.

Are you planning to go legit? LLC or S-corp for example? Insurance for your gear? Insurance for your vehicle? I’m part time and my truck is insured as both personal AND commercial. But my previous insurance company wouldn’t do that - so we switched companies. About 1/3 of my bank goes to taxes.

It’s good that your family is supportive. Because you will miss a lot of family time due to mowing, bidding, dropping off and picking up you damaged mower (it’ll happen), playing catch-up due to weather, etc. I couldn’t do it without my wife’s support.

Keep us posted with your progress. And good luck to you!

Reactions: 4

JFGLN

· #29 · 7 d ago

If the equipment is worth $4k, That would leave $70 cost per client. The friend can "buy" the ones he is interested in. I would do this deal assuming the prices per mow are accurate.

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[email protected]

· #30 · 7 d ago

A good a plan as any.

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PearlWhiteGT

Discussion Starter · #31 · 7 d ago

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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wmitchell

· #32 · 7 d ago

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.

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PearlWhiteGT

Discussion Starter · #33 · 7 d ago

wmitchell said:
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.

Reactions: 1

PearlWhiteGT

Discussion Starter · #34 · 6 d ago

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.

Youngandfree

· #35 · 6 d ago

I'm usually wearing composite toe hikers. Currently wearing these.

https://www.basspro.com/shop/en/wolverine-fletcher-mid-waterproof-safety-toe-work-boots-for-men

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· #36 · 6 d ago

PearlWhiteGT said:
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.

Danners

Jashley73

· #37 · 6 d ago

PearlWhiteGT said:
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.

You don't need a safety toe unless you're running a chainsaw, and then it's steel toe, or nothing.

For mowing, think about going hiking for 4-8-12 hours at a time. You want a lightweight shoe, with a grippy outsole. Removable insoles are a plus. I like an ankle boot for a little extra support. Timberland Pro's are a nice lightweight, water resistant boot. Mine are on season 3 and I just now had the first seam break. But the outsole is still in good shape, and they're still comfortable. And invest in some cedar shoe trees. They'll keep the toe/vamp from getting too creased, and the insides from getting stinky.

Jashley73

· #38 · 6 d ago

If I may, I wouldn't be so quick to cut off other accounts. Consider sub-contracting them out, and keeping a percentage. If your day job went south, you could always choose to mow them yourself. And it's a little extra income, provided your sub-contractor does good clean work that you can trust.

starry night

· #39 · 6 d ago (Edited)

wmitchell said:
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.

Never heard of this. My well-versed accountant has not mentioned it.

Reactions: 1

Hayduke

· #40 · 6 d ago

Jashley73 said:
You don't need a safety toe unless you're running a chainsaw, and then it's steel toe, or nothing.

I cut firewood for home and for sale 10 years in a row, probably 300 cords all said and done. Never wore steel toed boots, was just careful I guess. One time a lady hired me to do some cutting around her acreage and asked me if I wanted to borrow her husband's chainsaw chaps. They were shredded in at least 5 spots, from him carelessly lowering the bar before the chain was done spinning. Sometimes all that protective gear makes people more careless I guess! Not saying I don't believe in proper safety gear, but it doesn't pay to wear it and be careless...

Reactions: 2

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