Discussion in 'Starting a Lawn Care Business' started by BDog, Dec 13, 2005.

  1. BDog

    BDog LawnSite Member
    Messages: 1

    Hey all. Great site.
    I'm a new solo operator and I was just trying to figure about how much I keep of every dollar that comes into the business. i have insurance and everything else that makes me legal. I'm coming up with a figure of about 49%. Any input here would be greatly appreciated.
  2. RyanD

    RyanD LawnSite Member
    Messages: 178

    This totally depends on your situation. Everyone that responds to this thread will give you a different number. Are you just wanting to know what to expect?
  3. Jay Ray

    Jay Ray LawnSite Fanatic
    Messages: 6,510

    You are doing better than me.
  4. Reliable Lawns

    Reliable Lawns LawnSite Member
    Messages: 95

    49 % seems pretty high to me. I haven't paid myself anything yet, as I keep putting the money back into the company, but I am only part time. I would think that if you can pull 22% to 30% you are doing pretty good, but it is all relative to your gross sales versus your cost of goods sold and expenses.
    Best of Luck,
  5. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    cutting overhead is a MUST for me......

    My goal is to have every house on a block,

    But I think that's kind of unrealstic....

    I just wont drive across town to do 1 job, If I get a customer in a "new" area for me I will do it "if it's good" But If I dont pick up any more in that area I give it away........
  6. Wells

    Wells LawnSite Member
    from SLC UT
    Messages: 0

    Thats going to be tough to answer as it depends on operating costs and everyones operating costs are going to vary significantly.

    I would say you are doing very,very well if your earning 49% after operating costs. I've worked for some engineering firms in the past that were happy to be earning 7% after expenses. I can only wish that I could get mine up that high, i'm guess mine to be somewhere between 22% to 27%.

    Since your from Utah you may be familiar with "Jims Lawn care" in Sandy. He has old trucks, old trailers, old equipment and does little if any advertising. Any way I would guess that he has numbers up around yours in the 45+ range. I have to hand it to you guys that can keep your expenses down so low.
  7. cwlawley

    cwlawley LawnSite Senior Member
    Messages: 470

    I shoot for 40%...I actually bring in close to 25%.
  8. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    The rule of business calls for around 20 - 30%, that being the average, some pull as little as 15, others as much as 35.

    I found from my own experience it is best to let these figures kind of happen, of course it is always good to have goals... In my case I like to shoot a little high then I come in a little below that, and I'm ok with it, where other folks like to be realistic, whatever floats your boat.

    I'd say 50% is a bit high myself, but hey, just let it happen and see what happens :rolleyes:

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