Start up commercial

[htexas]

Hello, I just signed up as a new member yesterday. I want to start in commercial lawn business and have an inside on a company to start out with. I already have the equipment needed except a large deck mower and cannot pay cash for one. I haven't measured the job yet, but roughly figuring 3 to 4 hours to do this job by myself, Mowing, edging, trimming and clean up. It will be a 12 month contract I believe.

Questions. Can I make it work with the expense of a new mower?

Whats the least amount of insurance you would carry?

Any info for a new guy, thank you

[tulsa lawn guy]

Welcome Texas,

I joined this forum not too long ago myself and have been asking many of the same questions that likely interest you. I would recommend using the search function that GrassMaster has set up. It’s a fantastic tool.

Regarding insurance, it has been stated repeatedly on these boards that if you intend to service commercial properties that you will need at least a million dollars coverage. I was quoted $650/year for this, but rates vary throughout the country so you’ll just have to shop around. Also, if and when you decide to take on an employee the premium is increased.

Good luck!

[htexas]

Thank you I will keep searching this sight for information. Just thought someone might have an ideal on where I might stand on this job as far as making payments on a mower. And thanks on the insurance info.

Thanks

[Phil Nilsson]

Making payments ...

When you first start out you are very likely to have cash flow problems ... more money going out the door than coming in ... or a close shave, cash wise. That's because expenses and payments on vehicles, equip, and other fixed costs like rent, insurance, some taxes and the "foundation costs" that put you in biz are more than revenue generated in early stages. In other words in beginning you probably won't utilize the "hardware" to full potential, capacity. Cash flow will catch up with itself as you add more biz ... but if it never does ... than all you did was to buy and pay for hardware ... which is bad news since it's an expense not an investment (because it depreciates) and in the outyears ... worthless except for scrap value or maybe a boat anchor?

Prepare a simple budget ...

Nothing formal just jot down across a sheet of paper the 12 months ... plug in known income (for sure) top line each month ... then fixed costs like payments ... subtract the two ... now you can see the shortfall in cash by subtracting the difference. This is just a simple budget like you might do for your personal income and expense. In biz we call it cash flow breakeven ... people call it making ends meet.

Phil

P.S. In spite of mower payments suggest getting the fastest equip and financing it "stretch limo" because slow pokey stuff will keep you in the poorhouse for a longer time. Payments will cost you far less than "time".

[Elwood]

The insurance advice mentioned above is excellent!

As for a large deck mower, if you are afraid of buying new, look at used. Most mid-mount Z machines will run 2000 hours + trouble free. Look at trying to find a 400-500 hour machine. You can pick these up for several thousands off the price of new and still have a very reliable machine.

Try to finance it as long as you can. It keeps your monthly payment lower. If times go well, you can always pay extra to cut down the time of the note, but if times are tough, all you have to make is a low payment, not a high one.

Having the "inside" as you put it is how a lot of things work in business. Use all the inside connections you have. Ones you don't have, make.

Welcome to the site and keep posting!

[MSL, INC.]

....also check into your local dealership for slightly used equipment. I've been offered "demo" machies in the past at quite a discount. They have same as new warranties to go w/ them and around here dealer stands behind them as if they where sold new.

[htexas]

Thank you

[htexas]

Thank you for the information

This site is the one of the best I have found, hope to spend many years talking and sharing ideals here

I hit a football pot last night and won 2400 dollars, that helps alot towards the new mower

[Seascape]

I hit a football pot last night and won 2400 dollars, that helps alot towards the new mower



That should get you into a fairly nice used walk behind out of the newspaper. Consider a velkie on it and youve got yourself a nice starter kit.

mike

[Jack D.]

I would suggest financing for new instead of buying a used com. unit especially if a large deck mower is essential for your accounts.

Mowers are often used, abused & discarded. Also many LCO's sell units that have specific design problems or recurring mechanical problems that you may not notice w/cursory inspection.

[Seascape]

Originally posted by Jack D.
I would suggest financing for new instead of buying a used com. unit especially if a large deck mower is essential for your accounts.

Mowers are often used, abused & discarded. Also many LCO's sell units that have specific design problems or recurring mechanical problems that you may not notice w/cursory inspection.

Oh little grasshopper you have so much to learn.


mike

[danham]

need help too

Hi me and a couple buddies are also going to start up this year. I was wondering if anyone had any info on the kind and $ needed for insurance for just residental accounts. Also we are going to buy a 36 walk behind and are not sure which kind yet any suggestions on weedeaters blowers etc...... all info is greatly appreciated. Thanks Dan

[Jack D.]

I would start w/ Commercial General Liability/Personal Injury Liability/Medical Payments . Contractor's Equip Ins. may also be a good investment depending on your equip. & area.

Take the pebble from my hand Grasshopper...or in Mr. Seascape's case, the boulder.

[jbruner]

Just returned from National Farm Machinery Show in L-ville, KY. Wasn't in tune to payments, but couldn't believe how low payments were on a new 61" midmount Grasshopper. $210.00 for 36 months. Thought that was cheap!!! I'm considering purchasing one. Looked like a top of the line mower...........

[tulsa lawn guy]

Joey...

What was the price if you were to pay cash?