Value of lawn business

Discussion in 'Lawn Mowing' started by Stephen, Jan 11, 2000.

  1. parkwest

    parkwest LawnSite Senior Member
    Messages: 678

    Something you need to consider when determining the value of buying accounts is: <br>How many accounts could you pick up if you spent $25K on marketing and advertising as opposed to buying some one else accounts?<br> One benefit would be you would be picking and choosing your customers as opposed to getting some one else headaches. We have a guy in this area who lines up customers, does their yard for a while then sales the route to a rookie. He has done this 5 or 6 times in the last 3 years. Basically all you are buying is a list of names unless they are under written contract.
  2. ashlandscaping

    ashlandscaping Banned
    Messages: 113

    Well I have been on both ends of this I have bought accounts and a company and also sold part of mine. I would only pay for signed contracts and only pay 10 percent of what they gross per year thats going rate. $25000 is nutts. As far as equiment find loan vaule on it this is lower then blue book or any other form of seeing market value and thats all you should pay. Also with the accounts put in the buy agreeement a percent 10 to 20 % hold back its a good faith hold. It is so if he turns over the list to a buddy or if his old employe goes into business for himself you have somthing on him still. Also try to have him hold a percent of the price as a loan pay him x amount per month. He will be more term to help you keep the accounts. Also make sure he signes a no compete agreement saying he will not start a new company up with in 100 miles from you. Buying a business can be a good investment. Or a very bad deal. Just make sure you cover all aspects in writing. Plus you must remeber whom very is selling a businesss has put time efert and care into it so they always will be a little nuts at first. Make him a realisc offer he might laught or say get lost but in a month when 20 others have laught at him he will call you back and say lets make a deal. !6 account is not that many put out some fliers you will get that in 1 days time. Good luck

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