Some help for a new guy please

[CQLC]

I've been poking around these forums and picked up some great tips, but still have a few questions about a new business.

Background: Three years ago I got tired of spending 6+ hours riding time to cut my grass on my Dad's old Statesman 44inch deck riding mower. So I went out and bought a LazerZ with the UltraVac - now I'm done in 2 hours and bagging. Last year I started cutting some neighbors yards when they were on vacation, business trips, etc... Just $50 or so here and there. Began thinking I could make some extra money if I got organized.

Where I'm at:
- I've got the equipment, mowers & trimmers and such. I've bought mostly pro eqipment for my own yard (Exmark & Stihl) and kept them well maintained.
- 12' trailer, need to get some trimmer racks
- Business name registered (sole proprieter)
- Business checking account
- My wife in the accounting business to do the books
- Quotes on insurance
- Business cards, invoices, estimate forms, flyers, envelopes going to the printer this week
- Three established companies coming this week to give estimates on my brothers yard (he has a more standard lot) to make sure the pricing I have in mind is in line with the going rate

Questions:
- I drew up a basic contract that spells out the service & weekly price. I'm unsure about the billing though. Some say to mail out invoices on the 1st or 15th of each month. Some say write up the invoice on the jobsite and leave it with an envelope on the customer's door.

I'm trying to start out real small - for the extra play money. I guess what you would call a 'Mow & Go' - offering mowing, trimming, edging, general yard cleanup, etc... No chemicals or anything like that. Much like a cleaning lady doesn't remodel your home, she just cleans and leaves. I've picked up some great tips just browsing this forum. Any other pointers (or something I'm missing) from you established guys could give would be greatly appreciated.

[Heavenlylawncare]

Your what some guys on here would call a scrub. Don't believe it. Good luck with it. Just don't have the printer do everything for you. Do it yourself on the comp.

[MSU]

How is this guy a scrub???? He's getting insured, has good equiptment, has an accountant doing his books, and wants to know know how he should bill his customers. This sounds professional to me. Sounds like your heading in the right direction CQLC, just be sure to get a license (I don't know if you said that), and make sure you get your name out there through advertising and more importantly by doing quaility work. Also, could you offer services like dethaching/aeratoring, planting, trimming, power washing/ snow removel etc., these are just ideas and make sure you have the proper insurance and all. Also, represent yourself in a professional way, have a packet of information together to give your your potional clients like references, services, contact numbers etc., to give to them when you first meet them etc. Also, make sure to disguinish yourself from the competition, make sure your customers know why they should hire you and not someone else. Here are just some ideas and I hope there helpful to you, good luck with all, and its sounds like your on the right track.

[CQLC]

I'm trying to start out small time, but as professional as possible, with the equipment I use in my own yard - if that makes me a 'scrub', then so be it. Just thought this forum would be a good source for knowledge and not name calling. I think I'm on the right track, just looking for some billing advice, encouragement, and any other tips that I haven't thought of.

BTW: My wife has dealt with the printer before and I'm getting a pretty good deal -- that's really my only expense so far. Trying to look like a pro and not a scrub.

Again, thanks for any advice.

[bobkessler]

I like billing at the beginning of the month, with a statement that payment is due when service is rendered.
I also like a penalty for all overdue billing past 30 days of like 1.5% per month, which is 18% annual. Check with other guys in your area since most states have "usery" laws that limit the amount you can charge for unpaid balances.
As an industry we are sooo honest. We hate that % stuff for overdue payments, don't like it on our contracts, and rarely enforce it. The nice thing about having your own business is you can run it the way YOU want, regardless of what everyone else thinks, including your own family.
You might think about incorporating as a subchapter S though. You get some protection from creditors and lawsuits that you definitely do not have as a sole prop.

Good Luck and welcome to the industry. It's a good small business.

[Badgerz]

Your what some guys on here would call a scrub.

That statement was fairly ignorant. CQLC, you're definately on the right track. A scrub is some shmuck with a push mower tied to the top of his station wagon cutting lawns for $15 no matter what size they are. That may be a little extreme but you get the picture.

Good luck to you!

[Woody]

Your what some guys on here would call a scrub. Don't believe it. Good luck with it. Just don't have the printer do everything for you. Do it yourself on the comp.

How in the hell would ANYONE call him a scrub? That is the one of the DUMBEST statements I have seen as of late.

DO NOT follow this guys advice! A SCRUB does it all himself on the computer, and it LOOKS like it too.

Ask the printer for ALL the advice he is willing to give! Printshops have seen businesses come and go, by the hundreds! They get a feel for what works, and what doesn't. Be a PRO, and that means hiring a PRO in areas were you are not a professional, like printing.

CQLC, you are well on your way, and will put yourself WELL above the competition. Don't be afraid to ask advice here. People like YOU who take YOUR APPROACH are what this board is ALL ABOUT!

[jdaddy]

Take it from a scrub, you are not one.

You are in a good spot that I am envious of as far as starting equipment and the help of your wife for book keeping. I'm having to start much more slowely and pay for new commercial equipment as I earn money using my residential equipment.

[CQLC]

I did a little more research and I guess this is my main point of confusion on billing.

I see three ways to do it, with pros/cons on each:
- Write up invoice (carbon copy)on jobsite and leave with customer after each cut
- Mail monthly invoice for prior month's services
- Mail monthly invoice for upcoming month's services

This is something I need some help from you guys on because I definitely want to spell out the billing method in the contract I'm working on. I've kind of talked myself out of the first one. If I bill for the prior month, what are the chances of me getting stiffed? If I bill on the upcoming month, say 4 cuts at $60 each, how do I handle rainouts and such if I only cut 3 times?

Here's what I'm thinking. I've got a contract for $60/week. Leave a written "checklist" of services performed with customer each week. Run home and enter work onto that customer's invoice. Print & mail at end of each month.

Please let me know which method you guys use and why. Maybe there's another I'm missing.

By the way, thanks for the kind words and encouragement so far. I've poked around this forum for the last two weeks reading as many posts on as many subjects as possible - it looks like a great resource for anyone trying to start up.

[czechmate01]

we bill for prior months svc

We have only gotten stiffed once but my husband wont cut if they were more than one month behind. I have actually forgotten to bill a client and they have called to remind me. My husband keeps a log of who he does each day, almost all our clients are billed per month so we just enter the charges at the end of the month. I do his accounting but use a program called groundskeeper pro it was simple enough for me as I dont have an accounting background and wasnt familiar with quick books etc,, Grounds keeper pro has good and bad points I wish it would do a few things differently but for the most part it works for us.

Hope that helps
Sue

[rustyt22]

I bill at the beginning of every month for the services that are going to be rendered. The payment is due the 15th of the month, and works wonderfully. If you bill after youve already done the work, and have to wait approx 2 weeks for the customers to mail the bill, you'll be 6-7 weeks after completing the first cut till you get paid, which is essentially financing their bills without a finance charge.

By billing the first and getting paid by the 15th, the money doesnt actually leave their account till the middle of the month or later, which is about equal for both parties. They've paid for 1/2 month's services that are already rendered, and are paying in advance for services that will be rendered. It is then fair because it is right in the middle of the service month. Both parties should be equally happy. Think about cell phone bills. They all charge in advance (which is why the first bill is always the highest). I think it just helps in cash flow and everyhting for a young business. Then, iif a customer has been burnt before and demands to pay at the end of the month, I tell them I will make an exception for them and only them. It works great as a customer satisfaction tool! just my .02!