Contemplating starting....

[btammo]

Good day all. I am a new member to this forum, and am comtemplating opening a business as a landscaping/lawn care professional. I have read alot of different books so far this winter and realized that this is something that I would like to do. I work in a stuffy office(making decent money) but it is just not my calling. I have tons of questions as you can only imagine, and I really need to get my equipment list. I have a 4x4 Silverado and trailer to start, (as well as hand tools rakes etc.) I am looking a zero turn mowers etc, but havent decided yet. I dont know how much start up money I will need, and how to actually get this thing going. It is only a few months away and I need to start now. Any suggestions on start up cash for the things I need to get, and how to start, what customers to target etc. I think I will start part time initially, and go from there. I havent looked at insurance yet, but I can only imagine that it will be very discouraging to see it. Typically how much annually would that cost and what coverage? Thanks for looking.

[Elwood]

Equipment. You need to decide what size properties you are going to target. You need equipment large enough to get the job done in an efficient manor, but not so big that it is "over-kill" or less productive than a smaller peice.

Insurance. Most get million dollar liability and most premiums are based on your annual sales. You can get less coverage, but in todays world, a million is only a fair ammount and most will settle out of court for a million or less. Less insurance will not cost that much less, so I suggest getting a million. If you shop around, depending on rates in your area, you should be able to get commercial liability for $350-$750 per year given your low gross sales at first.

Start up money. Don't put it all in equipment. There are good deals on used commercial equipment. Save some start up money back for advertising. You can have the best equipment in the world, but with no customers, you are doomed. Get some good quality flyers or door hangers printed and pass out on the first warm day in your area. Also, you need to send letters to commercial sites just after the first of the year.

Do you have a computer? Computerized billing is great. A simple program like Quickbooks will ease your office duties greatly. A great investment.

Do you know what to charge? There are two main factors in knowing what to charge. What your market will bear and what your costs are. You need to figure out how much it costs you per man hour to operate. You also need to figure out what the "going price" is in your area. If it costs you $35 per man hour to operate and people are charging $50, you will be fine, but if they are only charging $35, you need to figure out how to be more efficient, cut costs and be more competitive.

Do you have a business plan? You need one. A plan to start and a plan for each quarter, then each year after that. Having a good business plan and folowing it will be a huge help.

Any questions, post here or PM me, I will be glad to help out.

[MortNuke]

Here are some basics (I'm a recent startup):

The equipment you'll need to get started (and see you through the first season while you are getting your feet wet) must be versatile - able to do small and large yards yet be efficient. This is the most important item you'll purchase, so make it a good choice! I recommend a 48" Walk Behind Hydrostatic Mower. I have an Exmark Turf Tracer HP and it has been a solid performer. New cost is just under $5000. (ZTR's are simply not versatile enough to be your only mower, IMHO. You should "grow into" one).

Next equipment, you'll need to choose 1 brand of tool and try to stick with it. Find a dealer you trust who will service your stuff. I chose Echo, which is very good, but for a little more money there are some even better quality stuff (Husqvarna, Shindaiwa, etc.). You must have a Backpack Blower, String Trimmer and Stick Edger. Each tool costs roughly $300 new. Consider gas trimmers for bushes, if the budget allows.

CASH: You financial situation (office worker, good money) should allow you to purchase new equipment on a "same as cash" type loan. Take advantage of deferring payments (and interest) while you build up a client base. Shoot for getting 10 yards as quickly as possible (dude, don't rest a MOMENT until have accomplished this) to get some income. Then pay off the $6000 equipment loan before the payments/interest kick in.

Finally: Immediately get truck signs for advertisement, as this will be your best method of getting work (along with a few flyers to residential communities). Contractor's Liability insurance should be in you immediate future, consider Erie Insurance Group for under $500/year for 1 million of coverage for your own protection.

Hope this gets you off in the right direction. This was my path and I am doing nicely and growing at a steady rate. This website is like a daddy holding your hand, so take advantage of it!

Mort

Edit: Elwood, who posted while I was typing, is a guru of this site, so take him up on his offer to PM for help.

[btammo]

The information is great so far guys.....thank you!!

[Phil Nilsson]

btammo,

Take a careful look at the (entire) green biz before going into any equipment "heavy" ... (part of it) because you can invest easily at the start upwards of $50,000 plus (cash & credit) and STILL net only $35,000 to $45,000 in the early years and it might take you 3 to get there. That 50 grand will "vanish" in under 10 years, 10% depr plus is typical and sometimes 15%. Labor and equipment (without anything else) aready puts you into a 40% to 50% cost of sales category ... so what I'm saying is that it's not the 30-30-30 deal ... so look at areas that are not equipment intensive and you'll be ahead of the game by 10% to 20% of whatever you end up selling. That's 10k to 20k translated per year. Sell labor ... not "iron".

Phil

P.S. Lawn care apps is 20% ahead (CGS wise) compared to general maintenance accompanied by "iron" ... and 10% plus higher on the bottom line.

[martinw]

Hello btammo, I am in the same situation as you. I am in the process of moving to the NC coast and am considering starting up a Lawn service / landscaping business there. One thing I've done in the last few weeks (and recomend highly) is to read all (yea all) the back posts on this site. It is amazing what you will learn. I've never seen a better site. You will learn about pricing, route planning (something I hadn't even considered), advertising, maintence, heck you can even view what your daily schedule should look like... Oh yea, I mentioned I've read here alot, but this is my first post. Best of luck to you on your venture.