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  • New to the Lawn Service Business

    Hi, I'm in need of some advice. A relative of mine has been operating a lawn service business for three years now. She has about 10 loyal clients. Recently she has received her business license and insurance so everything is legal. She is trying to avoid the headache of hiring employees so offered to contract me to handle the administrative duties. What should I charge her for my services? I'm thinking 60% of total revnue. My duties will include marketing new clients, giving quotes, managing employees, and other basic office duties. Any advice would be greatly appreciated.

  • #2
    I hate to say this, and I'm not being rude. But there's just no way she could pay you 60% of the total revenue and make any money at all. It would actually bankrupt the company pretty quickly.

    It would likely have to be a fairly low salary with a bonus based on the profit brought in from the contracts you get and maintain throughout the year. But that won't be close to 60% total compnay revenue.
    a.k.a.---> Erich

    www.avalawnlandscaping.com


    Build a man a fire, he'll be warm for a day.
    Set a man on fire, he'll be warm for the rest of his life.

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    • #3
      you dun lost me

      She doesn't want employees, but one of your duties would be to manage the employees.

      Further more, it sounds like she'll still be doing all the manual labor? All meanwhile you'll sit in an office, look pretty, and collect 60% of her total revenue? What about her overhead? If even at 30%, that leaves her with 10% of her revenue after she gives you the 60% you request. Tell me how you came to this 60% figure? How can you justify that amount?
      2008, 2009, 2010, 2011, 2012, 2013, 2014 and future 2015 LSF RECEPTED AWARD recipient!

      Hortikulture Kolledge Grad + Licensed Master Irrigator + Certified Backflow Technician +
      Licensed Fert & Squirt Applicator = Jack of all trades, master of none.

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      • #4
        Originally posted by MASTERMOWER View Post
        She doesn't want employees, but one of your duties would be to manage the employees.
        He said she doesn't want to worry about hiring employees......so I think she will hire Japatte to take care of hiring employees and other things.
        a.k.a.---> Erich

        www.avalawnlandscaping.com


        Build a man a fire, he'll be warm for a day.
        Set a man on fire, he'll be warm for the rest of his life.

        Comment


        • #5
          Originally posted by Scaper-S2k View Post
          He said she doesn't want to worry about hiring employees......so I think she will hire Japatte to take care of hiring employees and other things.
          Hmmm....

          Why would she contract out the administrative work? Sounds like the dude will run the whole show. Might as well start his own business. :alien:

          Very odd. :alien:
          2008, 2009, 2010, 2011, 2012, 2013, 2014 and future 2015 LSF RECEPTED AWARD recipient!

          Hortikulture Kolledge Grad + Licensed Master Irrigator + Certified Backflow Technician +
          Licensed Fert & Squirt Applicator = Jack of all trades, master of none.

          Comment


          • #6
            Thanks for the responses. To Scaper-S2K, your suggestion sounds more reasonable. I came up with 60% because I do internet marketing and for evey new customer I bring in the company pays me 60% of first month membership fees, so I just used that same method. To Mastermower, the employees will be hired through an Temp agency. She still has her job from 7-4 that is her main source of income. This lawn service business will not equal to what she is making now, so she will keep her present job. There will only be two employees. I run my own business which is J.A. Patterson & Associates. I write business proposal for new businesses and currently learning to do grants for businesses and non-profit organizations. I also do individual and business taxes and basic bookeeping. This is the reason she is contracting me to handle the start-up of her business.

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            • #7
              What you do somewhere else will not work in the field inwhich your working yourself into. I know it's hard to change peoples perception once they're working methods has been set in stone. Don't fall into this trap. (60%?) 10 clients isn't that much to start paying someone to run another one business.
              Hiring a teporary service is the sound solution. Which, if it were me, I would put you on the payroll as everyone who came to work for me ( through the temporary services) Pay you a commission on sales and set in a list that showed my what you accomplished in order to justifiy your pay. Checks and balances. If all she has is to fall on you for help, then I can only hope you treat her justly and straight forward on her questions.

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              • #8
                A small busines with 10 loyal customers hardly justifies hiring a manger that will take 60% of the money. If she is looking for someone to handle administrative stuff, she should get a book keeper or better yet get into a 'puter program like CLIP (1-800-635-8485, www.clip.com) or Real Green Systems (1-800-422-7478, www.realgreen.com) In fact, the selling point of CLIP is that purchasing this software will save a business $20,000/year by not having to contract with people like you.

                The best way for a small business owner to lose her edge is to rely on a non lawn person to submit bids. Some of my competitors found this out first hand and had to learn the hard way. The best bids and best ROI is from bids the owner makes.

                While a temp agency may be good in some cases, it only works if the owner is doing the supervision.

                I see a recipe for her business going down the tubes. Being a small business owner means that you are the business and the business is you. There are no easy short cuts.

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                • #9
                  since this thread is old, i doubt this person is going to be reading this but what the hell.

                  You write biz plans as your full time job?

                  And this is what you come up with?

                  You should tell your freind that you are sorry, but that you arn't the right person for the job. Then go back to all the people who you have written plans for and give them back their money. Try and get them to sign something saying that they will not sue you.

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                  • #10
                    Gee, this IS an older thread! I usually look at the date, but this morning I was pre occupied with getting ready to take my Scag 61" and Wright 36"RH to the Doc for electrical problem diagnsis since we hit a couple of brick walls.

                    The topic caught my attention and I thought HOLY SHEET

                    She must be mowing some big estates to hire 2 employees and a manager on just 10 accounts!?

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                    • #11
                      Originally posted by Stephen M. View Post

                      While a temp agency may be good in some cases, it only works if the owner is doing the supervision.

                      Ditto!

                      Thanks for seeing the loop.

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                      • #12
                        I think you should take what she gives to other employee and what post she gives to you

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                        • #13
                          this thread was interesting to read. that 60% thing got me as well. I wonder how the guy ended up and if the person who wanted to hire him as manager is still in the business...hmmm

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                          • #14
                            Being a new businessman, Everything should be taken with care. You have to manage all the work and employees.

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