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What size company is the most profitable????

Discussion in 'Lawn Mowing' started by Five Diamond Lawns, Jan 23, 2004.

  1. Five Diamond Lawns

    Five Diamond Lawns LawnSite Member
    Messages: 197

    A question for you larger companies (or those small ones who were once large)

    At which level were you the most profitable?

    As an example:
    I did well by myself and with some part time help. Then at 1.5 full time employees the profit sucked. Now with 2.5 full time and 2 trucks it's looking better.
    :confused: :confused: :confused:
  2. kels

    kels LawnSite Senior Member
    Messages: 280

    how do you figure a .5 full time employee, by the way this is a good thread.
  3. Five Diamond Lawns

    Five Diamond Lawns LawnSite Member
    Messages: 197

    20 hrs a week.

    I guess I could have rephrased that:blush:

    2 full time
    1 part time
  4. WeatherMan

    WeatherMan LawnSite Senior Member
    Messages: 692

    I have as Follows:
    1 Landscape designer (Me)
    6 Crew members
    1 Foreman
    1 salesman
    1 bookkeeper/secretary
    1 plastic Surgeon (my Wife) she fixes all the dumb stuff I do to the body LOL
    So there is 10 employees including myself ,11 if you count the wife.

    I say the bigger you are the more profit coming In. I started solo 5 years ago and made around 20k now 5 years later I make in the 6 figures.

    This year we are going to change a bit and just do Landscape and water garden installs and get out of the maintenance side. so I'm sure I will see a good size cut in the income this season. I am starting my little brother up by giving him all of our maintenance accounts and selling him some equipment.

    Best of luck to you
  5. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    profit per person was best with 2 employees. per employee was less with 3 employees, but made more money overall.
  6. PLI1

    PLI1 LawnSite Senior Member
    Messages: 254

    I feel a lot of your profitability depends on what kind of businessman you are. There are a lot of people out there who could not handle having lets say for example 20 employees. It takes some doing handling multiple crews, keeping employees happy, making sure all of the equipment is being maintained, balancing the books, keeping all the bills paid, meeting with customers, preparing estimates, delegating work you no longer can do to someone you know you can trust and so on. If someone can handle all of this without a sweat for the most part, then the bigger you are, then the more$ you'll probably make. If not, then having a few employees or just yourself may be the way to go. Right now I have 6 employees not including myself and I am content. I know I could make more $ with a few more, but I like to fish, golf and vacation once in a while. With the setup I have now, I can get away once in a while and not worry too much. I have good employees and the work gets done whether I'm there or not. Quality of life is important to me, more than making tons of $. I live in a nice house, my wife doesn't have to work and I'm no debt besides the mortgage on my house. Thats good enough for me.
  7. Avery

    Avery LawnSite Bronze Member
    Messages: 1,389

    Easy question to answer. Look at examples in the business world. Do you think UPS would do as well as a solo operator or as they are now? Or say Food Lion....one store vs. thousands. Bigger you are the more you will gross. How much of that you get to keep depends on how well you manage your business.
  8. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    It's simple...really.

    Solo x hourly rate = X dollars
    Solo + Employees x hourly rate = X+ dollars

    Do the math.
  9. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,143

    Gross is a lot different from profit, and profit was the question asked. Personally, I don't know, I am going through growing pains as well. I know that I personally believe that I couldn't handle a whole lotta employees or the responsibilities of a large company. I would like to grow, and I know the more I grow the more I have potential for grossing. But at the same time, I don't want to be the McDonalds of lawn care. That's just me.

    I've heard so many mixed opinions on this. I guess you have to do what you are comfortable with.
  10. NCSULandscaper

    NCSULandscaper Banned
    Messages: 1,557

    I think you would have the greatest profits, not gross with you and 1 other employee. Sending 2 employees out would cause too much down time by them talking to each other. Since you are there controlling the situation the whole time, there is less of a chance of wasted time.

    By having lots of employees and having a high gross figure, what good is that when you have no profit. As far as im concerned gross means nothing to me, i want profit figures.

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