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Biding and under biding jobs
#1
T
TDog225
T
TDog225
I've recently started a lawn care business and I think I'm overbidding and under biding jobs. Right now I'm only doing residential. I've started the business with my 3 teenage boys. I'm working residential jobs right now trying to teach them how to work and how to cut down on time. it's been a struggle but, we've only been in it a couple months. Work wise, they are finally starting to realize what it takes to have your own business. Can anyone tell me how or is there some type of info out there that can teach me how to bid jobs. I've found with residential, no one wants to pay any money and I find myself biding to low just to get business. I really want this business to do well not only for my sake but for my kids sake. Also, if anyone no what's the best way to get involved in commercial lawn mowing please let me know.
Thanks!
Thanks!
#2
M
Mad Mackie
M
Mad Mackie
Three teenage boys that are related to you?????? WWWWOOOWWW!!!!
When the cost of operating, maintaining and replacing equipment comes at you, then you will quickly know where you stand economically!!!!:confused2::confused2::confused2:
Mad Mackie in CT
When the cost of operating, maintaining and replacing equipment comes at you, then you will quickly know where you stand economically!!!!:confused2::confused2::confused2:
Mad Mackie in CT
#3
S
shadeytree
S
shadeytree
This is from my experience for the last 45 years in the corporate world evaluating guys like you. I was in charge of purchasing, hiring workers, and subcontracting work before I retired:
You must get yourself in front of the appropriate people.
Look and act like a professional before you walk in, while you are there, and after you walk out of the business's front door. The first impression of you is important. If you are driving your work vehicle or personal vehicle, make sure it is clean and the equipment you are hauling looks good. Do not show up with teenage boys under 18, because they will not be allowed to perform that work, due to OSHA regulations in commercial situations (it is the same in residential and you may get by until someone gets hurt, then you then will pay dearly). Ask for the person who is responsible for building maintenance. If the people occupying the building are renting, not the owner, you might ask who is the owner and go there if the owner maintains the property. Odds are you will get turned down more than once, but go back again. Being persistent pays off. If the business is a church, you should expect to go to some committee meeting in the evening for an interview. Leave a couple of clean professional looking business cards and a couple advertisements (fliers) each time you visit. When you finally get to talk to someone, ask them for the opportunity to bid the next time they are ready to negotiate their exterior maintenance contract (be specific that you want to do their yard work). Usually companies do a contract once per year. Be ready to present business references if asked (a resume for you, showing your business experience is what they will want). Ask them if they will share with you their invitation to bid from last time. If they have an invitation they send out, it will list each thing they expect you to provide, so you will know what to expect. If they do not have an invitation, ask them specifically what they expect, and take notes so you will not miss anything. An incomplete proposal will get thrown in the trash.
You will be required to have both liability and workman's compensation insurances. They most likely will ask for a certificate of insurance from your agent, proving you are insured, before allowing you to bid. If you claim to be a business you will be required to have a federal ID number for tax purposes, before you get paid.
A business client may ask you about your insurance modification number. (talk to your insurance agent) A business client may ask you about your written safety plan. A business client may ask you about your written drug prevention plan and your policy of how you deal with problems. You will be required by law to keep records at your workplace office for OSHA. You will be required by law to keep a MSDS log that includes a sheet for each hazardous product you have in your possession in the work place. You may be ask how you recycle waste products, green is good. You may be asked if you or your partners are a minority (your wife as a business partner may enhance your chances). You will be required by law to keep records that you have trained all employees in the safe and proper way to operate the equipment you allow them to operate. You will be required by law to post legal notices at a location that all employees can read them. It goes on and on............
Usually businesses not only want someone to mow, trim, and blow, they most likely will want someone to maintain flowers, shrubs, and trees. They might expect that person to fertilize, mulch, prune, aerate, seed, etc, at a specified time (once or twice) each year. Sometimes picking up trash, snow removal, storm damage cleanup, or the like is included or might be at an additional unit cost. (hourly or per each occurance). You might have to include hauling the debris away and pay the dump fees. If they do not have an invitation explaining what they want, you should prepare a proposal that shows them what you can do, and how much it costs. The more information you give the better. Make your proposal pretty and professional. Read it twice and then have some else read it for you to check for errors and bad grammar, before you give it to a potential client. You will only get one shot. No matter how good you are at mowing, that is not what will get you that commercial job. Being prepared to provide what the client wants and being professional while you do it is what it takes.
When you are adding up your costs to bid, do not forget that you, as the employer for anyone working under you, will be responsible for paying, in addition to their wages, 50% of their social security plus medicare tax, and 100% of their insurances that are required by law. An additional 30% to 35% is normal overhead to cover those expenses. If you provide benefits to your workers, overhead could be 40% or more. That overhead is in addition to your cost of wages, fuel, material, equipment, equipment maintenance, business expenses, and taxes. What is left after you pay everything, including yourself, is profit.
Do not expect to get paid each time you finish work. It will not happen in the business world. Hope to get paid once a month. After you complete your work, you will have to send an invoice. You should get paid within 30 days after you send the invoice. It takes some time for the client to process the invoice and send out a check. Sometimes a business runs short of cash because they did not get paid by their client. Sometimes the check will come on time. Sometimes it will not and you will have to go chase your client to get your payment. You will need to have enough cash upfront to pay wages and cover expenses until the check comes. Your expenses go on and on, no matter if you are paid on time or not.
As you can see, commercial mowing is not like stopping by and mowing someone's home lawn once per week where they give you cash.
The professional lawn care people in my area are really struggling. Too many just starting out do not understand their real costs, until they are in too deep. Also, there are more inexperienced people trying to find work and wanting to mow than there are lawns to mow. Therefore profits are low or none for the pro's. Most are working for low wages, barely or not actually covering expenses, and no to low profit. Hope it is better where you are!
Hope this helps!
You must get yourself in front of the appropriate people.
Look and act like a professional before you walk in, while you are there, and after you walk out of the business's front door. The first impression of you is important. If you are driving your work vehicle or personal vehicle, make sure it is clean and the equipment you are hauling looks good. Do not show up with teenage boys under 18, because they will not be allowed to perform that work, due to OSHA regulations in commercial situations (it is the same in residential and you may get by until someone gets hurt, then you then will pay dearly). Ask for the person who is responsible for building maintenance. If the people occupying the building are renting, not the owner, you might ask who is the owner and go there if the owner maintains the property. Odds are you will get turned down more than once, but go back again. Being persistent pays off. If the business is a church, you should expect to go to some committee meeting in the evening for an interview. Leave a couple of clean professional looking business cards and a couple advertisements (fliers) each time you visit. When you finally get to talk to someone, ask them for the opportunity to bid the next time they are ready to negotiate their exterior maintenance contract (be specific that you want to do their yard work). Usually companies do a contract once per year. Be ready to present business references if asked (a resume for you, showing your business experience is what they will want). Ask them if they will share with you their invitation to bid from last time. If they have an invitation they send out, it will list each thing they expect you to provide, so you will know what to expect. If they do not have an invitation, ask them specifically what they expect, and take notes so you will not miss anything. An incomplete proposal will get thrown in the trash.
You will be required to have both liability and workman's compensation insurances. They most likely will ask for a certificate of insurance from your agent, proving you are insured, before allowing you to bid. If you claim to be a business you will be required to have a federal ID number for tax purposes, before you get paid.
A business client may ask you about your insurance modification number. (talk to your insurance agent) A business client may ask you about your written safety plan. A business client may ask you about your written drug prevention plan and your policy of how you deal with problems. You will be required by law to keep records at your workplace office for OSHA. You will be required by law to keep a MSDS log that includes a sheet for each hazardous product you have in your possession in the work place. You may be ask how you recycle waste products, green is good. You may be asked if you or your partners are a minority (your wife as a business partner may enhance your chances). You will be required by law to keep records that you have trained all employees in the safe and proper way to operate the equipment you allow them to operate. You will be required by law to post legal notices at a location that all employees can read them. It goes on and on............
Usually businesses not only want someone to mow, trim, and blow, they most likely will want someone to maintain flowers, shrubs, and trees. They might expect that person to fertilize, mulch, prune, aerate, seed, etc, at a specified time (once or twice) each year. Sometimes picking up trash, snow removal, storm damage cleanup, or the like is included or might be at an additional unit cost. (hourly or per each occurance). You might have to include hauling the debris away and pay the dump fees. If they do not have an invitation explaining what they want, you should prepare a proposal that shows them what you can do, and how much it costs. The more information you give the better. Make your proposal pretty and professional. Read it twice and then have some else read it for you to check for errors and bad grammar, before you give it to a potential client. You will only get one shot. No matter how good you are at mowing, that is not what will get you that commercial job. Being prepared to provide what the client wants and being professional while you do it is what it takes.
When you are adding up your costs to bid, do not forget that you, as the employer for anyone working under you, will be responsible for paying, in addition to their wages, 50% of their social security plus medicare tax, and 100% of their insurances that are required by law. An additional 30% to 35% is normal overhead to cover those expenses. If you provide benefits to your workers, overhead could be 40% or more. That overhead is in addition to your cost of wages, fuel, material, equipment, equipment maintenance, business expenses, and taxes. What is left after you pay everything, including yourself, is profit.
Do not expect to get paid each time you finish work. It will not happen in the business world. Hope to get paid once a month. After you complete your work, you will have to send an invoice. You should get paid within 30 days after you send the invoice. It takes some time for the client to process the invoice and send out a check. Sometimes a business runs short of cash because they did not get paid by their client. Sometimes the check will come on time. Sometimes it will not and you will have to go chase your client to get your payment. You will need to have enough cash upfront to pay wages and cover expenses until the check comes. Your expenses go on and on, no matter if you are paid on time or not.
As you can see, commercial mowing is not like stopping by and mowing someone's home lawn once per week where they give you cash.
The professional lawn care people in my area are really struggling. Too many just starting out do not understand their real costs, until they are in too deep. Also, there are more inexperienced people trying to find work and wanting to mow than there are lawns to mow. Therefore profits are low or none for the pro's. Most are working for low wages, barely or not actually covering expenses, and no to low profit. Hope it is better where you are!
Hope this helps!
#4
exotion
That was a fantastic read thank you
exotion
This is from my experience for the last 45 years in the corporate world evaluating guys like you. I was in charge of purchasing, hiring workers, and subcontracting work before I retired:
You must get yourself in front of the appropriate people.
Look and act like a professional before you walk in, while you are there, and after you walk out of the business's front door. The first impression of you is important. If you are driving your work vehicle or personal vehicle, make sure it is clean and the equipment you are hauling looks good. Do not show up with teenage boys under 18, because they will not be allowed to perform that work, due to OSHA regulations in commercial situations (it is the same in residential and you may get by until someone gets hurt, then you then will pay dearly). Ask for the person who is responsible for building maintenance. If the people occupying the building are renting, not the owner, you might ask who is the owner and go there if the owner maintains the property. Odds are you will get turned down more than once, but go back again. Being persistent pays off. If the business is a church, you should expect to go to some committee meeting in the evening for an interview. Leave a couple of clean professional looking business cards and a couple advertisements (fliers) each time you visit. When you finally get to talk to someone, ask them for the opportunity to bid the next time they are ready to negotiate their exterior maintenance contract (be specific that you want to do their yard work). Usually companies do a contract once per year. Be ready to present business references if asked (a resume for you, showing your business experience is what they will want). Ask them if they will share with you their invitation to bid from last time. If they have an invitation they send out, it will list each thing they expect you to provide, so you will know what to expect. If they do not have an invitation, ask them specifically what they expect, and take notes so you will not miss anything. An incomplete proposal will get thrown in the trash.
You will be required to have both liability and workman's compensation insurances. They most likely will ask for a certificate of insurance from your agent, proving you are insured, before allowing you to bid. If you claim to be a business you will be required to have a federal ID number for tax purposes, before you get paid.
A business client may ask you about your insurance modification number. (talk to your insurance agent) A business client may ask you about your written safety plan. A business client may ask you about your written drug prevention plan and your policy of how you deal with problems. You will be required by law to keep records at your workplace office for OSHA. You will be required by law to keep a MSDS log that includes a sheet for each hazardous product you have in your possession in the work place. You may be ask how you recycle waste products, green is good. You may be asked if you or your partners are a minority (your wife as a business partner may enhance your chances). You will be required by law to keep records that you have trained all employees in the safe and proper way to operate the equipment you allow them to operate. You will be required by law to post legal notices at a location that all employees can read them. It goes on and on............
Usually businesses not only want someone to mow, trim, and blow, they most likely will want someone to maintain flowers, shrubs, and trees. They might expect that person to fertilize, mulch, prune, aerate, seed, etc, at a specified time (once or twice) each year. Sometimes picking up trash, snow removal, storm damage cleanup, or the like is included or might be at an additional unit cost. (hourly or per each occurance). You might have to include hauling the debris away and pay the dump fees. If they do not have an invitation explaining what they want, you should prepare a proposal that shows them what you can do, and how much it costs. The more information you give the better. Make your proposal pretty and professional. Read it twice and then have some else read it for you to check for errors and bad grammar, before you give it to a potential client. You will only get one shot. No matter how good you are at mowing, that is not what will get you that commercial job. Being prepared to provide what the client wants and being professional while you do it is what it takes.
When you are adding up your costs to bid, do not forget that you, as the employer for anyone working under you, will be responsible for paying, in addition to their wages, 50% of their social security plus medicare tax, and 100% of their insurances that are required by law. An additional 30% to 35% is normal overhead to cover those expenses. If you provide benefits to your workers, overhead could be 40% or more. That overhead is in addition to your cost of wages, fuel, material, equipment, equipment maintenance, business expenses, and taxes. What is left after you pay everything, including yourself, is profit.
Do not expect to get paid each time you finish work. It will not happen in the business world. Hope to get paid once a month. After you complete your work, you will have to send an invoice. You should get paid within 30 days after you send the invoice. It takes some time for the client to process the invoice and send out a check. Sometimes a business runs short of cash because they did not get paid by their client. Sometimes the check will come on time. Sometimes it will not and you will have to go chase your client to get your payment. You will need to have enough cash upfront to pay wages and cover expenses until the check comes. Your expenses go on and on, no matter if you are paid on time or not.
As you can see, commercial mowing is not like stopping by and mowing someone's home lawn once per week where they give you cash.
The professional lawn care people in my area are really struggling. Too many just starting out do not understand their real costs, until they are in too deep. Also, there are more inexperienced people trying to find work and wanting to mow than there are lawns to mow. Therefore profits are low or none for the pro's. Most are working for low wages, barely or not actually covering expenses, and no to low profit. Hope it is better where you are!
Hope this helps!
That was a fantastic read thank you
#5
T
TDog225
Thanks Shadytree for your impute. It was very informative. Now I know exactly what to expect.
T
TDog225
This is from my experience for the last 45 years in the corporate world evaluating guys like you. I was in charge of purchasing, hiring workers, and subcontracting work before I retired:
You must get yourself in front of the appropriate people.
Look and act like a professional before you walk in, while you are there, and after you walk out of the business's front door. The first impression of you is important. If you are driving your work vehicle or personal vehicle, make sure it is clean and the equipment you are hauling looks good. Do not show up with teenage boys under 18, because they will not be allowed to perform that work, due to OSHA regulations in commercial situations (it is the same in residential and you may get by until someone gets hurt, then you then will pay dearly). Ask for the person who is responsible for building maintenance. If the people occupying the building are renting, not the owner, you might ask who is the owner and go there if the owner maintains the property. Odds are you will get turned down more than once, but go back again. Being persistent pays off. If the business is a church, you should expect to go to some committee meeting in the evening for an interview. Leave a couple of clean professional looking business cards and a couple advertisements (fliers) each time you visit. When you finally get to talk to someone, ask them for the opportunity to bid the next time they are ready to negotiate their exterior maintenance contract (be specific that you want to do their yard work). Usually companies do a contract once per year. Be ready to present business references if asked (a resume for you, showing your business experience is what they will want). Ask them if they will share with you their invitation to bid from last time. If they have an invitation they send out, it will list each thing they expect you to provide, so you will know what to expect. If they do not have an invitation, ask them specifically what they expect, and take notes so you will not miss anything. An incomplete proposal will get thrown in the trash.
You will be required to have both liability and workman's compensation insurances. They most likely will ask for a certificate of insurance from your agent, proving you are insured, before allowing you to bid. If you claim to be a business you will be required to have a federal ID number for tax purposes, before you get paid.
A business client may ask you about your insurance modification number. (talk to your insurance agent) A business client may ask you about your written safety plan. A business client may ask you about your written drug prevention plan and your policy of how you deal with problems. You will be required by law to keep records at your workplace office for OSHA. You will be required by law to keep a MSDS log that includes a sheet for each hazardous product you have in your possession in the work place. You may be ask how you recycle waste products, green is good. You may be asked if you or your partners are a minority (your wife as a business partner may enhance your chances). You will be required by law to keep records that you have trained all employees in the safe and proper way to operate the equipment you allow them to operate. You will be required by law to post legal notices at a location that all employees can read them. It goes on and on............
Usually businesses not only want someone to mow, trim, and blow, they most likely will want someone to maintain flowers, shrubs, and trees. They might expect that person to fertilize, mulch, prune, aerate, seed, etc, at a specified time (once or twice) each year. Sometimes picking up trash, snow removal, storm damage cleanup, or the like is included or might be at an additional unit cost. (hourly or per each occurance). You might have to include hauling the debris away and pay the dump fees. If they do not have an invitation explaining what they want, you should prepare a proposal that shows them what you can do, and how much it costs. The more information you give the better. Make your proposal pretty and professional. Read it twice and then have some else read it for you to check for errors and bad grammar, before you give it to a potential client. You will only get one shot. No matter how good you are at mowing, that is not what will get you that commercial job. Being prepared to provide what the client wants and being professional while you do it is what it takes.
When you are adding up your costs to bid, do not forget that you, as the employer for anyone working under you, will be responsible for paying, in addition to their wages, 50% of their social security plus medicare tax, and 100% of their insurances that are required by law. An additional 30% to 35% is normal overhead to cover those expenses. If you provide benefits to your workers, overhead could be 40% or more. That overhead is in addition to your cost of wages, fuel, material, equipment, equipment maintenance, business expenses, and taxes. What is left after you pay everything, including yourself, is profit.
Do not expect to get paid each time you finish work. It will not happen in the business world. Hope to get paid once a month. After you complete your work, you will have to send an invoice. You should get paid within 30 days after you send the invoice. It takes some time for the client to process the invoice and send out a check. Sometimes a business runs short of cash because they did not get paid by their client. Sometimes the check will come on time. Sometimes it will not and you will have to go chase your client to get your payment. You will need to have enough cash upfront to pay wages and cover expenses until the check comes. Your expenses go on and on, no matter if you are paid on time or not.
As you can see, commercial mowing is not like stopping by and mowing someone's home lawn once per week where they give you cash.
The professional lawn care people in my area are really struggling. Too many just starting out do not understand their real costs, until they are in too deep. Also, there are more inexperienced people trying to find work and wanting to mow than there are lawns to mow. Therefore profits are low or none for the pro's. Most are working for low wages, barely or not actually covering expenses, and no to low profit. Hope it is better where you are!
Hope this helps!
Thanks Shadytree for your impute. It was very informative. Now I know exactly what to expect.
#6
Carscw
Very nice read. Hope you don't mind if I add a couple things.
Set up a bank account for the company.
Give your self a pay check.
Don't use the company check book to buy your toys. Boat dirt bike or whatever
But you can get a four wheeler and write it off.
And remember you can show a loss the first year.
What I see a lot is guys start making money and buy toys then winter comes and all the toys are in the pawn shop.
(( racing is the only sport that you need two balls ))
Carscw
This is from my experience for the last 45 years in the corporate world evaluating guys like you. I was in charge of purchasing, hiring workers, and subcontracting work before I retired:
You must get yourself in front of the appropriate people.
Look and act like a professional before you walk in, while you are there, and after you walk out of the business's front door. The first impression of you is important. If you are driving your work vehicle or personal vehicle, make sure it is clean and the equipment you are hauling looks good. Do not show up with teenage boys under 18, because they will not be allowed to perform that work, due to OSHA regulations in commercial situations (it is the same in residential and you may get by until someone gets hurt, then you then will pay dearly). Ask for the person who is responsible for building maintenance. If the people occupying the building are renting, not the owner, you might ask who is the owner and go there if the owner maintains the property. Odds are you will get turned down more than once, but go back again. Being persistent pays off. If the business is a church, you should expect to go to some committee meeting in the evening for an interview. Leave a couple of clean professional looking business cards and a couple advertisements (fliers) each time you visit. When you finally get to talk to someone, ask them for the opportunity to bid the next time they are ready to negotiate their exterior maintenance contract (be specific that you want to do their yard work). Usually companies do a contract once per year. Be ready to present business references if asked (a resume for you, showing your business experience is what they will want). Ask them if they will share with you their invitation to bid from last time. If they have an invitation they send out, it will list each thing they expect you to provide, so you will know what to expect. If they do not have an invitation, ask them specifically what they expect, and take notes so you will not miss anything. An incomplete proposal will get thrown in the trash.
You will be required to have both liability and workman's compensation insurances. They most likely will ask for a certificate of insurance from your agent, proving you are insured, before allowing you to bid. If you claim to be a business you will be required to have a federal ID number for tax purposes, before you get paid.
A business client may ask you about your insurance modification number. (talk to your insurance agent) A business client may ask you about your written safety plan. A business client may ask you about your written drug prevention plan and your policy of how you deal with problems. You will be required by law to keep records at your workplace office for OSHA. You will be required by law to keep a MSDS log that includes a sheet for each hazardous product you have in your possession in the work place. You may be ask how you recycle waste products, green is good. You may be asked if you or your partners are a minority (your wife as a business partner may enhance your chances). You will be required by law to keep records that you have trained all employees in the safe and proper way to operate the equipment you allow them to operate. You will be required by law to post legal notices at a location that all employees can read them. It goes on and on............
Usually businesses not only want someone to mow, trim, and blow, they most likely will want someone to maintain flowers, shrubs, and trees. They might expect that person to fertilize, mulch, prune, aerate, seed, etc, at a specified time (once or twice) each year. Sometimes picking up trash, snow removal, storm damage cleanup, or the like is included or might be at an additional unit cost. (hourly or per each occurance). You might have to include hauling the debris away and pay the dump fees. If they do not have an invitation explaining what they want, you should prepare a proposal that shows them what you can do, and how much it costs. The more information you give the better. Make your proposal pretty and professional. Read it twice and then have some else read it for you to check for errors and bad grammar, before you give it to a potential client. You will only get one shot. No matter how good you are at mowing, that is not what will get you that commercial job. Being prepared to provide what the client wants and being professional while you do it is what it takes.
When you are adding up your costs to bid, do not forget that you, as the employer for anyone working under you, will be responsible for paying, in addition to their wages, 50% of their social security plus medicare tax, and 100% of their insurances that are required by law. An additional 30% to 35% is normal overhead to cover those expenses. If you provide benefits to your workers, overhead could be 40% or more. That overhead is in addition to your cost of wages, fuel, material, equipment, equipment maintenance, business expenses, and taxes. What is left after you pay everything, including yourself, is profit.
Do not expect to get paid each time you finish work. It will not happen in the business world. Hope to get paid once a month. After you complete your work, you will have to send an invoice. You should get paid within 30 days after you send the invoice. It takes some time for the client to process the invoice and send out a check. Sometimes a business runs short of cash because they did not get paid by their client. Sometimes the check will come on time. Sometimes it will not and you will have to go chase your client to get your payment. You will need to have enough cash upfront to pay wages and cover expenses until the check comes. Your expenses go on and on, no matter if you are paid on time or not.
As you can see, commercial mowing is not like stopping by and mowing someone's home lawn once per week where they give you cash.
The professional lawn care people in my area are really struggling. Too many just starting out do not understand their real costs, until they are in too deep. Also, there are more inexperienced people trying to find work and wanting to mow than there are lawns to mow. Therefore profits are low or none for the pro's. Most are working for low wages, barely or not actually covering expenses, and no to low profit. Hope it is better where you are!
Hope this helps!
Very nice read. Hope you don't mind if I add a couple things.
Set up a bank account for the company.
Give your self a pay check.
Don't use the company check book to buy your toys. Boat dirt bike or whatever
But you can get a four wheeler and write it off.
And remember you can show a loss the first year.
What I see a lot is guys start making money and buy toys then winter comes and all the toys are in the pawn shop.
(( racing is the only sport that you need two balls ))
#7
exotion
I agree with you sir. We have two accounts at two different banks I write my self a paycheck and put it in the family account twice a month its a nice even 1000 twice a month this is what we need to live comfortably while not overindulging. The first year save save save you want to have a nest egg just in case.
Also limit your company account I won't let my wifes name on mine. I have a debit card and one book of checks and everything that leaves the account has to be written down and documented
exotion
Very nice read. Hope you don't mind if I add a couple things.
Set up a bank account for the company.
Give your self a pay check.
Don't use the company check book to buy your toys. Boat dirt bike or whatever
But you can get a four wheeler and write it off.
And remember you can show a loss the first year.
What I see a lot is guys start making money and buy toys then winter comes and all the toys are in the pawn shop.
(( racing is the only sport that you need two balls ))
I agree with you sir. We have two accounts at two different banks I write my self a paycheck and put it in the family account twice a month its a nice even 1000 twice a month this is what we need to live comfortably while not overindulging. The first year save save save you want to have a nest egg just in case.
Also limit your company account I won't let my wifes name on mine. I have a debit card and one book of checks and everything that leaves the account has to be written down and documented
#8
Carscw
Ha ha my wife controls all the money.
Well all but what I make selling and trading mowers.
I am very bad with money went to a car show the other day and if I had the check book I would have came home with a couple cars
(( racing is the only sport that you need two balls ))
Carscw
I agree with you sir. We have two accounts at two different banks I write my self a paycheck and put it in the family account twice a month its a nice even 1000 twice a month this is what we need to live comfortably while not overindulging. The first year save save save you want to have a nest egg just in case.
Also limit your company account I won't let my wifes name on mine. I have a debit card and one book of checks and everything that leaves the account has to be written down and documented
Ha ha my wife controls all the money.
Well all but what I make selling and trading mowers.
I am very bad with money went to a car show the other day and if I had the check book I would have came home with a couple cars
(( racing is the only sport that you need two balls ))
#9
TaskForceLawnCare
TaskForceLawnCare
Look I'm not try to knock the book written about OSHA, being 18 ect. I don't work in the corporate world and actually kind of despise it. None of thats true you have less then 38 employees and its family owner/operator at this point.
To the actual topic of biding a yard and I can only tell you what works for me. I start at a minimum of $35 to drop the trailer tail gate. Then I take and educated guess on how long it will take to string trim, edge, blow everything off and multiply that by a $1.10 a minute. That's for smaller subdivision lawns 1/4 to 1/3 of an acre is common size. Large properties we start at $45 an acre then the same formula. I use on average 35 gallons of fuel a week in my truck and 45-60 gallons of gas between the mowers a week. Bid it high and sell quality i own the highest priced LCO in my area, we turn people away weekly because we all we can handle.
I know it's overwhelming at first and biding is tricky. Your in this to make money teach your teenage family lessons of hard work. Which i think is awesome not enough parenting like that these days. Get some liability insurance for the business and an LLC you'll be fine.
To the actual topic of biding a yard and I can only tell you what works for me. I start at a minimum of $35 to drop the trailer tail gate. Then I take and educated guess on how long it will take to string trim, edge, blow everything off and multiply that by a $1.10 a minute. That's for smaller subdivision lawns 1/4 to 1/3 of an acre is common size. Large properties we start at $45 an acre then the same formula. I use on average 35 gallons of fuel a week in my truck and 45-60 gallons of gas between the mowers a week. Bid it high and sell quality i own the highest priced LCO in my area, we turn people away weekly because we all we can handle.
I know it's overwhelming at first and biding is tricky. Your in this to make money teach your teenage family lessons of hard work. Which i think is awesome not enough parenting like that these days. Get some liability insurance for the business and an LLC you'll be fine.
#10
exotion
My wife controls all the money she doesn't have access to the company account but we consult each other for each purchase (except things like gas, string etc)
I bid my sq footage + or - haggling, distance from other jobs, and difficulty(tons of string trimming) 1500 or less sqft is about 15 dollars 3500 sqft or less is 25 6000sqft is 35 dollars my biggest is a little over 9000 sqft and I charge 50 a cut. This process provides me with apx 50 dollars an hr
I am cheap around here but I work alone have basically no overhead and enjoy my work so I don't mind working for cheap. I am also not competitive so I don't mind sharing how much I charge. My only competitive thing I do is provide free herbicide free fertilizer. Good stuff to 40ish dollars for 50 pounds and I do it every 6 weeks for all regular customers
exotion
Ha ha my wife controls all the money.
Well all but what I make selling and trading mowers.
I am very bad with money went to a car show the other day and if I had the check book I would have came home with a couple cars
(( racing is the only sport that you need two balls ))
My wife controls all the money she doesn't have access to the company account but we consult each other for each purchase (except things like gas, string etc)
I bid my sq footage + or - haggling, distance from other jobs, and difficulty(tons of string trimming) 1500 or less sqft is about 15 dollars 3500 sqft or less is 25 6000sqft is 35 dollars my biggest is a little over 9000 sqft and I charge 50 a cut. This process provides me with apx 50 dollars an hr
I am cheap around here but I work alone have basically no overhead and enjoy my work so I don't mind working for cheap. I am also not competitive so I don't mind sharing how much I charge. My only competitive thing I do is provide free herbicide free fertilizer. Good stuff to 40ish dollars for 50 pounds and I do it every 6 weeks for all regular customers
#11
TaskForceLawnCare
If it works for you then go with it, I've got overhead in maintenance fuel and pay role. I pay cash for any equipment or mowers i buy. Just don't short change yourself brother at the end of the day know your cost vs actual profit . I enjoy it as well but none my equipment runs on air or dreams. I've a chemical license for the state of Indiana. I've never done fert, herb or pesticide for free. Believe me when i say this if you're doing a good job they'll pay you for it. I don't take advantage of my customers but i don't let them take advantage of me either. I wont haggle with my customers either, I'll tell them to higher the uninsured mow blow guy that may or may not be around next week, or month. Good luck and greener grass
TaskForceLawnCare
My wife controls all the money she doesn't have access to the company account but we consult each other for each purchase (except things like gas, string etc)
I bid my sq footage + or - haggling, distance from other jobs, and difficulty(tons of string trimming) 1500 or less sqft is about 15 dollars 3500 sqft or less is 25 6000sqft is 35 dollars my biggest is a little over 9000 sqft and I charge 50 a cut. This process provides me with apx 50 dollars an hr
I am cheap around here but I work alone have basically no overhead and enjoy my work so I don't mind working for cheap. I am also not competitive so I don't mind sharing how much I charge. My only competitive thing I do is provide free herbicide free fertilizer. Good stuff to 40ish dollars for 50 pounds and I do it every 6 weeks for all regular customers
If it works for you then go with it, I've got overhead in maintenance fuel and pay role. I pay cash for any equipment or mowers i buy. Just don't short change yourself brother at the end of the day know your cost vs actual profit . I enjoy it as well but none my equipment runs on air or dreams. I've a chemical license for the state of Indiana. I've never done fert, herb or pesticide for free. Believe me when i say this if you're doing a good job they'll pay you for it. I don't take advantage of my customers but i don't let them take advantage of me either. I wont haggle with my customers either, I'll tell them to higher the uninsured mow blow guy that may or may not be around next week, or month. Good luck and greener grass
#12
S
shadeytree
Your statement is not exactly true. Some small business with less than 10 employees are exempt from SOME regulations, but not everything. The employer is still responsible for the safety of their employees, training their employees, providing safety equipment for their employees, and record keeping of all the events that are related. Though the regulations do vary some from state to state and might be more strict, the federal regulations are the minimum. If you fail to follow the regulations in your state you are negligent in OSHA's eyes.
You should educate yourself by reading the regulations. Start here> https://www.osha.gov/Publications/smallbusiness/small-business.html#decide
If you, as an individual, employ your child, you are his employer. Family relationship does not matter. If your child is part owner of the company, then the child is not an employee, both of you are employers.
If your business is a corporation you and your child are an employee of the corporation. You are not the employer the corporation is, even though you might own 100% of the corporation. A corporation and corporation's officers are liable. OSHA loves corporate assets.
The reality is that most people who run a small lawn care business are not on OSHA's radar. Until you have an injured employee you most likely will not hear from them. If the employer gets hurt they pretty much do not care. If an employee is seriously injured on the job the employer and the whole company will be closely examined by an OSHA inspector, to make sure the employer has followed the regulations that are required to by law. If the employer, or the employer's supervisor, is negligent, they may have some pretty stiff fines. I have seen multiple fines over $10,000 and up to $40,000 for individuals and a few in the hundreds of thousands for companies with deep pockets. I have heard of fines in the millions in the case of a employee death when the company was grossly negligent.
My background was with a large corporation that worked in every state in the US. I have been on the getting a fine side. When that office hands you a summons to a hearing and says you owe $$ and if you do it again it will be $$$$$$, it is not funny.
The original poster in this thread was asking about "Commercial" work, that is why I brought up OSHA. If you work for almost any business they will be concerned that you follow OSHA regulations, because in turn they would be considered negligent in OSHA's eyes if they knowingly allow you to be negligent.
ps: this will be my last post on this matter. I am OUT of the corporate world, :biggrin: and don't miss it one bit!:smile:
I am going to unsubscribe so I will not see it again
S
shadeytree
Look I'm not try to knock the book written about OSHA, being 18 ect. I don't work in the corporate world and actually kind of despise it. None of thats true you have less then 38 employees and its family owner/operator at this point.
Your statement is not exactly true. Some small business with less than 10 employees are exempt from SOME regulations, but not everything. The employer is still responsible for the safety of their employees, training their employees, providing safety equipment for their employees, and record keeping of all the events that are related. Though the regulations do vary some from state to state and might be more strict, the federal regulations are the minimum. If you fail to follow the regulations in your state you are negligent in OSHA's eyes.
You should educate yourself by reading the regulations. Start here> https://www.osha.gov/Publications/smallbusiness/small-business.html#decide
If you, as an individual, employ your child, you are his employer. Family relationship does not matter. If your child is part owner of the company, then the child is not an employee, both of you are employers.
If your business is a corporation you and your child are an employee of the corporation. You are not the employer the corporation is, even though you might own 100% of the corporation. A corporation and corporation's officers are liable. OSHA loves corporate assets.
The reality is that most people who run a small lawn care business are not on OSHA's radar. Until you have an injured employee you most likely will not hear from them. If the employer gets hurt they pretty much do not care. If an employee is seriously injured on the job the employer and the whole company will be closely examined by an OSHA inspector, to make sure the employer has followed the regulations that are required to by law. If the employer, or the employer's supervisor, is negligent, they may have some pretty stiff fines. I have seen multiple fines over $10,000 and up to $40,000 for individuals and a few in the hundreds of thousands for companies with deep pockets. I have heard of fines in the millions in the case of a employee death when the company was grossly negligent.
My background was with a large corporation that worked in every state in the US. I have been on the getting a fine side. When that office hands you a summons to a hearing and says you owe $$ and if you do it again it will be $$$$$$, it is not funny.
The original poster in this thread was asking about "Commercial" work, that is why I brought up OSHA. If you work for almost any business they will be concerned that you follow OSHA regulations, because in turn they would be considered negligent in OSHA's eyes if they knowingly allow you to be negligent.
ps: this will be my last post on this matter. I am OUT of the corporate world, :biggrin: and don't miss it one bit!:smile:
I am going to unsubscribe so I will not see it again
#13
TaskForceLawnCare
TaskForceLawnCare
Again what does this have to do with bidding a lawn. I'm familiar with OSHA and we're compliant eye pro, boots, pants, MSDS sheets, first aid kit, fire extinguisher ect. If you've ever owned a business you realize that you will assume some risk and liability. That's why the owner is typically the individual that makes the most money. I understand your OSHA concern and can respect your 45 years working for large corporation. However the guy isn't to the point he has to worry about it, as long as, he's following basic safety rules. Start a thread for OSHA regulations.
#14
Carscw
Carscw
If your going to service a place like Burger King or a bank or even Walmart they are not going to ask you about OSHA or if you know CPR.
They will want you to have insurance and yes you can get insurance with out a tax Id number or a license.
Only time OSHA is going to be a concern is if your doing state or a city contract.
I have never got a fine from OSHA but did get a few warnings and got a red tag on a tractor for no brakes.
Now about 12 years ago I got a $5000 fine from msha for not wearing a seat belt.
(( racing is the only sport that you need two balls ))
They will want you to have insurance and yes you can get insurance with out a tax Id number or a license.
Only time OSHA is going to be a concern is if your doing state or a city contract.
I have never got a fine from OSHA but did get a few warnings and got a red tag on a tractor for no brakes.
Now about 12 years ago I got a $5000 fine from msha for not wearing a seat belt.
(( racing is the only sport that you need two balls ))