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What are the costs for a Solo LCO

Discussion in 'Starting a Lawn Care Business' started by VMcNeill, Sep 18, 2006.

  1. VMcNeill

    VMcNeill LawnSite Member
    Messages: 55

    I'm working on business plan for my LCO next spring. Trying to figure out what some of the costs will be. So far I have this:

    Equipment - 30,000 for top of the line equipment.

    general liability insurance- 600/year

    commercial truck insurance- 700/year 1990 chevy truck.

    gasoline - calculating 5200/year

    maintainance of equipment- not sure about this one.

    Pest control license test- Anyone from Texas can correct me if I'm wrong, but so far as I can tell it should only cost around $400 to get it.

    advertising- 1000/year - at least this is what I'm planning to spend next year.

    Those are the only ones that I can think of, I'm sure there are many more, if you can think of any please post it. Keep in mind that this is for a solo operation.
  2. Shorts

    Shorts LawnSite Member
    Messages: 16

    If you already have the truck I think $30,000 for equipment is a bit steep. You can easily purchase new commerical mowers for $2,000 - $6,000 a piece. Being solo 2 mowers and a small 21 incher should do. Then figure $500 for the blower $500 for the edger and $500 for the weed eater. As for a trailer your looking at around $4000 for enclosed and $2500 for open.

    You will need other odds and ends and possible back up equipment but you should be able to deck your rig out for $20,000.

    good luck
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    i cant remember for sure who posted it, but there is a great thread here on these cost you are looking at, and it was very complete..... try a search using (cost of doing business)
  4. Roger

    Roger LawnSite Fanatic
    Messages: 5,943

    Expenses are one end of the business plan? What about the income?

    From what you have said in this thread (may be others that explain your position), but I gather you are just starting out, without any customers. Is this right? If so, planning to spend $30K on equipment, with no customers, would never fly for a business counselor. Or, there is more to your story, a part that explains how you will have a customer base quickly to justify having $30K of equipment.

    I think most solo operators build their equipment list as the work load demands. The one-at-a-time residential customer cares not how much extra equipment you have back at the shop or on the trailer, they are merely looking to get their grass cut for a reasonable price. Your rates would have to be much higher than competition to amortorize off that kind of initial equipment expense.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    Yes, cut the equipment a little and up the Ads
  6. VMcNeill

    VMcNeill LawnSite Member
    Messages: 55

    The equipment(except for trimer, blower and edger) will all be bought with earnings(if any) throughout the year. Total initial investment will be around 4,000.

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