what do i need for commercial accounts???

[Jr yard's]

Say yall this is my second season and I would like to get into the commercial accounts. The only thing is I dont know what I need to get the accounts. I know that I need a tax number, insurance ....what else?? Im sure that there is a whole lot of more paper work, but I just dont know what I need or dont need. I just what to be one the up and up so I can look good on paper and on the yard's. Anything that yall can come up with will help so thanks.

Keep on mowing

[Phil Nilsson]

What do i need in order to get the account? Anything will help thanks yall.

You need to "master" job estimating skills & selling skills ... without those two skills you won't get far in this business ... in fact long term you probably won't be around and if you are ... you'll still be breathing exhaust fumes behind a mower and have under 5 employees who have rotated your payroll a dozen times or more!

Somebody needs to be honest about things like this! ...

[jfishenter]

Sounds like Phils trying to sell something????

[Jr yard's]

Come on guy's

I know some has to know somthing... like I said I want to be on the up and up because I want to have a good business. p.s. thanks phil

[LLee]

Insurance is necessary and proof will be requested. You don't need a federal tax ID number. You can just give them your ss# if thats how you currently do your taxes. They'll 1099 you at the end of the year. Bidding is critical as was previously stated. Don't be afraid to ask for a second opinion on a bid. I try and consult some of my peers if at all possible. Also, a detailed contract as to what is expected of you.

[Jr yard's]

Thanks LLee

[Scaper-S2k]

After all the legal stuff has been filed, the main thing you need for commercial work is cash flow.

You should have at least 20% cash flow for each account. Or the means to borrow it from a line of credit if needed. Unless you find out after a year or so that the company pays quickly. But at first, make sure you have those cash reserves to pull from.

With out it, you will likely go under quickly.

[Phil Nilsson]

Sounds like Phils trying to sell something????

Even the most prepared, educated, savvy business people find this business an enormous uphill batlle ... you are fighting lowballers, illegals ... excons ... others who can't find a regular job ... imagine how hard it is for those foolish enough to think that "easy street" awaits them.

And that "aint" the half if it ... in the coming 5 to 10 years this business will get MORE competitive then it is right now ... tougher than now? you betcha!

You better do your homework if you want to compete with them!

[GrassMaster]

Back in the Olden Days...

About 50% of my commercial accounts stayed about 60 to 90 days behind...

I had several big ones that paid every 90 days. I had quite a few Doctors that paid the same way. It's basically a BS lie coming from them that they can only pay every 60 to 90 days, It's just they work off your Blood, Sweat & Tears for those few months they put you off.

Just be prepared to Keep Plenty of money in the bank doing commercial accounts. I tried to keep 2 to 3 months gross in the bank at all times. It's hard to get to that stage but when you do there's no more borrowing money for anything except vehicles & real estate!

[GrassMaster]

Fees for Service are Dropping Yearly!

And that "aint" the half if it ... in the coming 5 to 10 years this business will get MORE competitive then it is right now ... tougher than now? you betcha!

Phil is right, it seems the more time that goes by, they charge less for the work.

7K to 10K sq.ft. lawns in mid to late 80's in my area was going for $45 to $55 to Cut, Catch, Trim with Trimmer, Edge, & Blow...

Today some of those same lawns are done for $25 a pop. It ain't right or fair for the Business Owner... But what can you do?

[stephenw/YLS]

[QUOTE]About 50% of my commercial accounts stayed about 60 to 90 days behind...

That's insane! Even my coomercial accounts have Net 10 on the invoice. If they are regularly late I put a note on the bottom of their invoice and impose a $5 late fee from then on. You need to have that money in YOUR bank account collecting interest not theirs. It helps to find out when they pay their bills (usually one day per month or week) and make sure they get your bill on time. Communication is very important up front and during the season. Good luck on building your business, sounds like your trying to do a good job and look professional. There will always be people out there looking for the quality and not the price.

[GrassMaster]

I'm Gone Butt Not Forgotten!

Welcome to the Lawn Service Forum Community, Stephenw/YLS!
Thanks for the advise, I need all the Help I can get?

I haven't cut grass for (Profit) money since 1990...

I cut for 5 years then sold it, I started with an old truck, old Snapper rear engine rider, a trash can, sling blade, gas trimer, old 5X10 trailer, push snapper, 2 gas cans, a push broom & a few hand tools...

When I sold out I had 65 accounts that ranged for $2,200 to $125 a month year round about 30% commercial & 70% residential.

Sold the biz for $35,000 down & $65,000 financed at 8%, had $20K in the Bank, $10K in Accounts receivable, Over $10K left in equipment & had just built a Killer 30'X40' shop with full bath... I did OK not much to brag about.

All I do now is gain weight, lose hair & sit on my phat butt playing on the puter!

[Scaper-S2k]

I have a lot of commercial accounts, only one pays in less than 10 days. It's a smaller condo. Other than that, it's net 30. But many go longer than that. Heck, I did 4 installs for Burger King in November. The first was done on the 4th of Nov. @ $10k. Still out. Nothing unusual though.

[Jr yard's]

Thanks guy for everything keep it coming.