Start-up Costs.......$$$$$...?

[GRASSCUTS LAWN CARE]

Hi everyone........

Getting everything in place (starting), for getting my LAWNCARE business started for next spring (2004).

I have worked for a local fellow on and off this summer just to see what it was like (didn't tell him that). I REALLY enjoyed the satisfaction it gave me.

I'm presently managing a small manufaturing company, and I'm sick of looking out the windows!!!!! (been in this business for close to 18 years now).

I live in the NORTHEAST. Properties in my area range from .10 acre lots to 4 acres of manicured lawns. We have a pretty large population of commercial properties as well.

I own NOTHING!!! Even my 22" home mower just died (threw a rod...1959 murray 3.5 HP, got my money worth out of it!)!!!

I'm not trying to start this business on a "SHOESTRING", but I don't want to waste $$$ either.

Here are my intentions on what I would like to initially do in this field:

GRASS CUTTING
HEDGE TRIMMING
LEAF CLEAN-UP/REMOVAL (HELP ME ON THIS ONE GUYS!)
SNOW PLOWING (RESIDENTIAL/COMMERCIAL?? (I DUNNO EITHER)
GUTTER CLEANING (I HAVE A 30' EXT. LADDER)
MULCHING BEDS
PLANTING ANNUALS/SHRUBS AND SO ON..(DO I NEED A LICENSE?)

Thats about it for the get-go.

NOTE* I don't even own a truck!!!!!

I would like to spend no more than 10-15K to get this up and running. I'm VERY mechanicly inclined and DO NOT need to rely on anyone for anythng.

Being that the season is WINDING DOWN in the next two months up here in the Northeasrt....I'd plan on buying some USED equipment and freshen it up through the winter months.

Can I do this for 10-15K including the purchase of a used truck to plow with?

Thanks !!!!

[Phil Nilsson]

GRASSCUTS ... if I can offer some advice? ... don't agonize about equipment in the beginning ... agonize on how you will "own" the work, what share of it will you get, what sales, cash this will generate. The equipment is a known thing, in the store waiting for you to buy and owing equipment is not owning a business ... (owning customers IS the business) the sales and promoting sales and service is where to focus.


Most of the equip you can finance if you can carry a payment schedule (find that number) and find the number for the needed working capital and cash flow to operate ... you'll need at least 6 to 8 weeks cash flow from sales to cover expenses and personal draw ... where will your personal income "come from" and how much?

Phil

[justmjc]

Look in the local classifieds for a used rider or buy a brand new walk behind. You can get them for about $2000-$3000. A trailer for $1000 or less, Trimmer, edger, blower for $1000 new. You can get a very nice first truck for your biz with the remaining money. I see MANY first timers pulling equipment around with the 86-93 dodge rams. You can pick them up for a dime a dozen in the classifieds.


If you have $10k-15$ to invest in this venture right now, I would say put that money into a business account and finance the mower, trimmer, edger, blower, and trailer right from the start if you don't want to piece it together from used ads. I see places that finance all of this in one package. Pay cash for a decent truck and the remainder plus your income will more than enough cover your payments.

Use other peoples money (financing) and keep as much of your own in your pocket. You can write off the purchase plus interest and have the security of your own $ just in case until you feel like paying everything off.

Mike

[Fido]

Grasscuts - Yes, In CT you MAY need a license to plant annuals, shrubs and so on. Here's the deal. It falls under the Home Improvement Contractor license requirements for existing homes. I don't know about new homes, only that it's different.

According to the law, you need a license for "landscape alteration" jobs in excess of $200 or $1000 per year per customer. So you could do 5 $199 jobs for a customer and not need one.

The license is $160, no test or anything. It's administered by the Dept. of Consumer Protection. Any work that requires a licensed contractor requires a contract with about 10 required things in it, inlcuding a 3 day customer cancellation provision and you also have to provide them with a cancellation form. If you don't follow the requirements, legally they don't have to pay you!!!!

For maintenace work (mowing, clean-ups, trimming hedges/shrubs), no special license is required.

Other licenses may apply. You may need to reigster before you can do business in certain towns/cities or face a stiff fine. And you still have to worry about if/how your are going to register your business(dba, LLC or Inc. etc), pay taxes etc. And don't forget to collect (and pay) your sales tax. And don't forget about local zoning requirements, noise ordinances etc.

BTW - CT has a "quick start" program for new business. They can send you an info package spelling out all the requirments/considerations or you can just download things from their site. If you can't find it, let me know. I know I have their web address in the info package they sent me...I'd just have to find it.

P.S.

I also pay a "business entity" tax. I think it's up to $300 now for LLC's, like me.

Good Luck!!