Third Year - $100,000 - My Plan - Advice?

Grant07

LawnSite Member
For my 3rd year of business I want to profit $100,000. The past two years have been decent but we are not even at $50,000. Call me crazy but with my drive and work ethic and my partners drive/work ethic, I know we can do it. I am posting this for suggestions. We are both 20 but I would like to succeed with this business, if I can't we are both moving on.


Equipment:

Two commercial Honda walk behinds. (Most likely buying a third)
5x7 Trailer
FS45, FS110, Straight Troy built
Stihl 600 and handheld stihl blower
Misc. tools: trimmers, rakes, etc.
Ford Ranger (Which is current truck) but planning on buying a F150 or 250 long bed for space, racks, etc. and to be main work truck

The past two years we have done residential lawn mowing with a few coffee shops. We have had some big projects (Bark, Rock, Landscaping, Sprinklers, Weed Whacking 2.5 miles of trail and new developments are some of the projects we took on this year.) We also work with a preservation company every 12-14 days during summer and take on whatever lawns they give us (Anywhere from 15 to 30 per trip).

Advertising: We do lots of flyers when we can, use Craigslist, and I am currently working on a website and online directories to put our name out on the web. Also lots of word-of-mouth.

Now I know what I am shooting for is high. The past two years has been two workers, myself and someone else, sometimes a third when needed. 2012 the plan is for me to basically run the business and get business 24/7 while two guys are out doing weekly lawn care, clean ups, etc. I will work when we get packed or take on a landscaping project.

Are there any tips from you guys on what I can do to achieve my goal? What kind of things should I watch out for or try to focus on this year? Is this feasible? How are you guys doing with your profits?

Anyway probably the same old readings with my post as a lot on this site but that's my story and plan, any advice or comments are appreciated. Good or bad.

Thanks,

Grant
 

Showpropserv

LawnSite Member
Location
mn
#1 buy out your partner it may be going well now but just you wait it will go bad at least 90% of the time.
#2 Really look at if you need a bigger truck you very well be better off with a slightly larger trailer 7x12/14 that is aluminum for less weight and a bigger mower. Maybe a 52 or 60 inch walk behind or rider.
3. Below 30 dollars a cut you are losing money you would be better off staying home and not running equipment expecially doing 2 cuts a month

Gas may just kill you with a larger truck. The company I work for has I truck F350 diesel pulls a 16 enclosed trailer Fuel alone runs almost 100 per 4 days for the truck not counting another 100 or so for the mowers. I dont know about you but im sure you can get at least another year or 2 out of that ranger. How many accounts do you have btw it would make us understand better as well may lawn care companys dont take off for 4-5 years
 

DA Quality Lawn & YS

LawnSite Fanatic
Location
Rochester, MN
With that equipment list and a net of $50K? Something doesn't add up.

That said, to even GROSS $100K, you'd better start wholesale advertising using a variety of means, direct mail, website, newspapers, etc. Upgrade your equipment beyond homeowner (cause with that much work, it will take a beating).
 

idealscape

LawnSite Member
You didn't mention anything about insurance. Are you insured? Seriously think about upgrading to a larger mower, and getting a bigger truck. (you will never net $100k with your current set up) But my biggest piece of advice for you is this...I know it seems feasible to do $100k, but you are better off setting a more reasonable goal for yourself. If you and a partner did $50k last year, look to net $65-70 next year. Practice proper growth, don't get in over your head, you'll get sloppy. I agree with someone else's advice also, buy out the partner...you wont regret it.
 

Green Scape

LawnSite Member
Location
New England
It can take up to three years to even become profitable, let alone profit $100k....I think what you meant was for the business to gross $100k, which is feasible, and if you know what type of work to go after, it can be done. I would look at your equipment to see if you have what you need to take on that kind of work, and then become as efficient as possible....form systems for everything, follow your business plan.....and keep at it. Be able to walk away from some jobs,as not all are winners.....and oh yea, DONT QUIT
 

LindblomRJ

LawnSite Silver Member
Something doesn't add up. You are talking a net of 100K and not a gross?

Commercial equipment, and a strong justification for equipment. Look at how much it will cost to get the productivity you need to achieve the goals.

Remember the upgrades are going to cost money, and usually require more money to operate.

Also to feed the paradox you need to spend some money to make money. The goal to make sure what you are spending it on will gain efficiency or generate more revenue.
 

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