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Selling Accounts & Equipment-- Fertilizer Application Business-- $320,000)Minneapolis

Discussion in 'Marketplace' started by hobbsd, Jun 8, 2009.

  1. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    My wife and I have decided to sell our lawn fertilizing / treatment business so that we can take a different direction in life.

    Minneapolis and W. Wisconsin Market


    Quick stats-


    $335,000 in gross 2009 scheduled services


    $100,000-$150,000 net revenue planned this year


    Very well branded and advertised business


    In the past few years we have grown 30-100% yearly.


    Started business in 2004


    Employees: One office, three (two full time on part time) applicators.


    Four trucks, one estimating car.


    Business currently has around $70,000 in hard assets.


    By different evaluations, This is still a very good buy. Especially since there isn't too many business that are growing rapidly through this economy.


    I am looking to sell this year, and would be happy to meet with you to discuss details and ideas.


    Please email me through here to start.


    Thanks!



    DH

    All vehicles have a full (and different) graphics job since this picture was taken.

    n59513413_34643002_8706.jpg
     
  2. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    bump bump
     
  3. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    Bump again
     
  4. RABBITMAN11

    RABBITMAN11 LawnSite Bronze Member
    Messages: 1,391

    Man if you where in Indianapolis I would buy you out in a heart beat
     
  5. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    Minneapolis is a nice place to live too :walking::walking:
     
  6. joevg

    joevg LawnSite Member
    Messages: 193

    what kind of zspray is it? would you sell and equipment separate?
     
  7. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    Its a Max, but for now equipment is staying with the business
     
  8. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    bump bump
     
  9. Turfdoctor1

    Turfdoctor1 LawnSite Senior Member
    Messages: 705

    hobbsd,

    I have been following these threads since last year, and I think it is awesome that you are following what you feel led to do in selling this business. I wish you all the best of luck.

    I'm not in a location to buy the business, but certainly find the idea interesting. I'm just going through the numbers, and, not wanting to question you, but just curious how everything adds up.

    Again, no reason you should have to disclose this information to me, because I am not in a position to buy. I'm just curious.

    Of the $335K in gross, what % goes to your product? Assuming ~ 20%, that would be $67K to product. I would guess around $120K in labor costs. That gets you down to $148K of revenue before any fuel, advertising, rent, worker's comp, insurance, yadda yadda. I guess, I just don't see how you can make $150K revenue with 4 employees and $335 gross. I plan on making ~$80K revenue next year with 1 employee and $225K gross.

    Again, none of my business. Honestly, I just get curious about how everyone else makes money, and want to learn how to better my business based on good business practices of others.
     
  10. hobbsd

    hobbsd LawnSite Senior Member
    from west wi
    Messages: 448

    Hey, thanks for the nice post.

    I don't know what you pay your one employee, but it much be way higher than mine! IF you cut that labor figure by about 60% then you'd get our labor costs. Your pretty close on your product costs, a little high, but close.

    I was told one that any business can make money, the trick to success is if you can not spend the money you make.
     

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