Startup Questions

[TaskForceLawnCare]

I was talking to a guy the other day.

He was trying to brag about how much he made every week. He just started lawn care this year.

Should have seen his face when I told him I pay out more every week then he makes.

I slowed a one man operation down tonight. he couldn't stop watching use do leaf removal tonight. he was blowing and raking when we pulled up with 2 trucks and everyone went at their job seamless. every time I looked up he was starring down the road. we done 3 houses before he could finish a quarter of the yard he was working in. however a rake doesn't have much overhead. I don't know what he's making. if I had to guess though I'd say even with my travel time and overhead I made more money today. considering we had 9 more to finish after we rolled out off that street.

 

[Ric]

But we do have a walmart 20 mins away.

We moved up here about a year and a half ago. From a subdivision 2 hours away. I love it no noise no people. If I can see someone from my deck they are trespassing.

Yeah that sounds nice, I lived in a place like that but it's now a sub-division. If you can find a place like that here you'd better be a hermit or you'll be driving 3 hrs to get to work.

 

[Ric]

I'm the same way I live out in the country, in a surrounding county of Indianapolis which is almost as big as the county its in.

fact you can't compete with the larger companies. they have capabilities you don't have they have man power you don't have ect. overhead is irrelevant if you have clientele to back it up.

If you're referring to me I don't think you have the knowledge of me or my business to know what my capabilities are. Fact is I don't have to compete with larger company's because the larger company's here work for the HOA of the sub-divisions doing entrance ways and parks, Villas and Town houses all with in the sub-divisions where the HOA is responsible for up keep of homes, streets and lawns. It's all under contract and the owners pay big time HOA or CDD fees for.
I guess when overhead becomes irrelevant so will my business because you can't have one without the other to my knowledge. I don't care how big or small a business you think you have there will always be cost involved for one thing or another. Overhead is always relevant regardless of clientele, it will always effect the bottom line. The more clientele you add the cost involved only makes sense.

 

[TaskForceLawnCare]

no I'm not referring to you specifically. what I'm saying is overhead is irrelevant in the since that yes you'll always have it, but if you have the customers to enable you to afford it; then its irrelevant.
I would guess by your statement that the LCO doing the common areas has more overhead, and also has a much larger bottom line.
more to the subject I'm sure they spent/spend a decent amount of time and money on marketing, or the HOA wouldn't have known who they where.

 

[Ric]

no I'm not referring to you specifically. what I'm saying is overhead is irrelevant in the since that yes you'll always have it, but if you have the customers to enable you to afford it; then its irrelevant.
I would guess by your statement that the LCO doing the common areas has more overhead, and also has a much larger bottom line.
more to the subject I'm sure they spent/spend a decent amount of time and money on marketing, or the HOA wouldn't have known who they where.

I seriously doubt they did any advertising to get those HOA jobs, I figure probably there posted at some place like city hall or the county offices for bid or there's enough communication between sub-divisions so they know who to contract. I know the business that does our Sub-division runs at least 6 to 8 24ft enclosed trailers does at least 4 other subs in the area and employees dozens of people so you can bet your bibby overhead and cost isn't irrelevant to them.

I do know what I see or have seen in the last 8 years of running my business and I don't think I've ever seen a company that rolls two or three trucks into a sub-division to do residential lawn work, if you have a company that size doing that your seeing a company in trouble. I'd say 90% of the guys doing residential work are running a 12 to 14ft open trailer with equipment to do the job that needs doing, Trim, Edge, Cut and Clear and on to the next, what I've done is just skipped the on to the next routine.

You keep talking about advertising and that's is something that I view as unnecessary other than maybe to get a couple of clients in a new area or on Craiglist if you want to spread your area out. I've been in business for about 10 years , 8 years in this location and only ran advertisements in this area for 1st year of the business and haven't done any since then and that was just Business cards stuck in doors. I did run magnetic signs on my truck for a while but if your work is good enough or better than the other guy, people and word of mouth are your best advertisement.

 

[TaskForceLawnCare]

my experience with HOAs is they seek you, city and county work is posted in the news paper or court house. I can assure you I'm not struggling. I took 2 trucks for leaf removal one with equipment on the trailer and the other with a dump trailer.
bottom line is you have to advertise and market your brand. you've been fortunate I don't think that your success with little marketing/advertising is the norm.

 

[Ric]

my experience with HOAs is they seek you, city and county work is posted in the news paper or court house. I can assure you I'm not struggling. I took 2 trucks for leaf removal one with equipment on the trailer and the other with a dump trailer.
bottom line is you have to advertise and market your brand. you've been fortunate I don't think that your success with little marketing/advertising is the norm.

My advertising and success comes from word of mouth. Being better and doing a better job than the guy down the street. I truly believe that the days of the larger lawn care company's doing residential work are coming to an end because they can't do what the smaller guys can do for the price they do it and pay there people wages, insurance and all there overhead.

Now this is just a question but I mean really how are you with your business which you consider to be large with the equipment you most likely have and have employees you have to pay going to compete with a guy who has a small business, does good quality work and cuts a lawn for $15.00 a cut or charges $15.00 an hour for leaf work and some cheaper and doesn't have one quarter the overhead that you have.

I have to laugh because I hear it and read about it all the time on these forms theses guys whining about the little guys charging what they charge and saying they can't possibly be making money at those prices and there killing the business and that they can't compete with those prices.

 

[exotion]

My advertising and success comes from word of mouth. Being better and doing a better job than the guy down the street. I truly believe that the days of the larger lawn care company's doing residential work are coming to an end because they can't do what the smaller guys can do for the price they do it and pay there people wages, insurance and all there overhead.

Now this is just a question but I mean really how are you with your business which you consider to be large with the equipment you most likely have and have employees you have to pay going to compete with a guy who has a small business, does good quality work and cuts a lawn for $15.00 a cut or charges $15.00 an hour for leaf work and some cheaper and doesn't have one quarter the overhead that you have.

I have to laugh because I hear it and read about it all the time on these forms theses guys whining about the little guys charging what they charge and saying they can't possibly be making money at those prices and there killing the business and that they can't compete with those prices.

Ric I've seen you complain about the little guy more than anyone else.

Me being the little guy does make money with prices close to half most my competition. I take my time and do an excellent quality job, I spend between 20-45 mins at a house and make $25-$45 a house depending on size. Most houses are close together and I usually average over $50 an hour sometimes over $100.

The ticket here everyone can agree on is an excellent scheduled route with minimal drive time. Maximize the time you are out of the truck you maximize your profits.

Next learn your equipment, learn your lawns do it the most efficent way you can without sacrificing quality. Quality always comes before quantity...

Market however you can without spending all your money. Door to door flyers/business cards is good and nearly free. Craigslist is free and good (Target areas, beware of instant gratificationers) and there are many more ways. Word of mouth will always get you the best most loyal customers.

 

[Carscw]

This tread is very good entertainment.

 

[TaskForceLawnCare]

My advertising and success comes from word of mouth. Being better and doing a better job than the guy down the street. I truly believe that the days of the larger lawn care company's doing residential work are coming to an end because they can't do what the smaller guys can do for the price they do it and pay there people wages, insurance and all there overhead.

Now this is just a question but I mean really how are you with your business which you consider to be large with the equipment you most likely have and have employees you have to pay going to compete with a guy who has a small business, does good quality work and cuts a lawn for $15.00 a cut or charges $15.00 an hour for leaf work and some cheaper and doesn't have one quarter the overhead that you have.

I have to laugh because I hear it and read about it all the time on these forms theses guys whining about the little guys charging what they charge and saying they can't possibly be making money at those prices and there killing the business and that they can't compete with those prices.

I love that $15 an hour guy, I can have their customers when they can't complete their promises.

math question: LCO A, charges $15 an hour and works at customer A's house for 8 hours, compared to LCO B who charges $90 an hour but does 8 times as many houses with 3 times the operating expenses. Who makes more at the end of the day?

I have a set budget for marketing, every year. I have a monthly, yearly fuel budget, and one for employees ect. run yours how you want. I hope you the best of success. some of us want to operate on a larger scale get out of the nest of one subdivision, make a little more foot print. its called free enterprise. ask Carnegie, CP Morgan, make as much as you can, do as much as you can, get as big as you can.

if I ill advised the gentleman wanting advice on how to get started. then I apologize, but I've never witnessed a company start up and succeed on a dream alone. they worked their butts off, knocked on doors, and got their name out there through advertising.

I should have just posted that he buy a toro, small truck move into a subdivision and contact you.

I was just simply giving the gentleman some ideas. I would like to offer to send you a free hat, T-shirt and ink pen.