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I was offered 1000 new accounts!!!

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  • I was offered 1000 new accounts!!!

    O.K., maybe that was an overstatement, but not that far from the truth. I was talking to a real estate broker that I know about my new lawn treatment business. I asked if he could provide me with any leads regarding new home buyers. He said yes, if I provided maintenance (I only do applications and have NO experience in mowing, etc.) he could possibly get me more business than I can handle. He's working with a builder that is starting work on a new development of 20 homes in a gated community. He said he may be able to get me the maintenance gig (front yards only, approx 2500sqft each house) and if I do a good job I would have a shot at future developments which may be huge. I wasn't planning on getting into the maintenance part of the business, but I don't want to turn down a golden opportunity.

    I'm asking for serious advice on how I should proceed.

    Ken

  • #2
    Follow up on the offer, but proceed with caution. I've heard stuff like that before but the actual promise is often less than promised. He may be looking for a "deal" that's good for him but not in your best interest.

    If this pans out, it could be a good thing for you. I do know that there are some people who make a good living at this with the right set up. Good luck and keep us posted on the results.

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    • #3
      I definately plan on following up. This could be a great jump start to my business.

      Problem is, I have NO experience at maintenance. This will be on-the-job training.

      I will need to purchase equipment and learn the techniques that are necessary to do a great job that will hopefully lead to more accounts.

      I guess I'll just wing it since I have no idea what I'm doing. This isn't a sure thing, but if it goes through I'm going to give it a shot. Gotta learn somewhere, right?

      "Good decisions come from experience, experience comes from bad decisions"
      Mark Twain

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      • #4
        I got a real estate guy that wants a good deal and always says he will help me get some properites but in 5 years there have only been two (onetime not longterm) properties. I scalp his yard each year and I even tried to avoid him this year but he cornered me, he still brings up that he always considers me when he knows someone who needs lawn stuff done. But basically he is cheap and only tries to bargain for a good price.

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        • #5
          I appreciate your concerns about dealing with realtors. I will definately keep it in mind. But, assuming that this will happen as descibed, how should I proceed?

          I'm thinking of purchasing Phil's "Start Up" package. Any thoughts on that?

          I'm looking at about 20 homes, front yards only, in a gated community with yards about 2500sqft each. I'll probably use a commercial walk behind, edger, string trimmer and blower. Haven't decided on brands or models yet but price is a big factor. May have to buy used to get started. I would like to avoid bagging but I'm not sure if they'll go for that.

          If anyone can provide any advice on tackling this project I would greatly appreciate it.

          Ken

          Comment


          • #6
            If the yards are only 2,500 square feet you can start out with a 22" Walk Behind Mower.......the one I use is a Toro Personal Pace....got it for $359 at Home Depot. Great Mower. (I will be buying a 48" Walk Behind when I start doing bigger yards and expand).

            ANyway, I use a RedMax Trimmer....$400....

            YOu can give it a shot for less than $1,000.

            Read everything you can on this sight and you will be just fine. Mowing lawns is not rocket science.........but running a business can be.

            Anyway, my average with the 22" mower is 357 sq.ft per minute. SO if you have a 2,500 sq ft lawn it should take you about 7 minutes to mow it (if it is fairly open). Then you need to figure out how long it will take to trim.......and then how long to blow off hard tops with a blower....and don't forget to include loading and unloading time.

            YOu need to figure out how long it will take to cut each lawn....then multiply that by your hourly rate (Don't tell the customer your hourly rate as this will scare him/her away). My rate is $50.00 per hour......so if the lawn will take you 30 minute to cut,......you charge them $25 (plus equipment costs....)

            You will want to have a minimum "drop the gate" charge.....mine is $25.00.
            So, even if you figure a lawn will only take 12 minutes to cut, trim, blow and go.....you need to price it at $25.......not $10 (which would be 0.20 hours x $50 per hour = $10). $10 isn't worth unloading your equipment.

            You NEED to go to the free section of this sight and read up on GrassMaster's EXCELLENT advice on how to figure out cutting times and pricing and depreciation of equipment etc.

            Also, yes....at a minimum buy Phyl's Labor Time Handbook....it is a great reference.

            Good luck!

            Comment


            • #7
              one of the most important rules to growing your business is stay focused on what you do best and make money at. I would rule no. No again about starting business for one customer. No again for doing with relater.

              This will take much time from your regular gig. I wish I has stayed focused when I had started out instead of jumping to the next gig to make it big. It is OK to say no. There is something good to come out of the next no.

              any time you make a business move try to look from the out side in to your business. Talk to some smart people who have been successful in business any business.

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              • #8
                Just a thought

                You know the application Business so stay in it. Get with a larger Mowing guy and sub the work or network with him. This will avoid a lot of head aches and capital out lay for new Equipment and hiring employees.

                Now by net working if this Guy is blowing smoke at you and Real Estate People are famous for that. You are not out a lot of expense.

                Now I believe California is like Florida. Very hard to get a Pesticide Lawn Spraying Licenses. Therefore there should be many Lawn cutter that don't have licenses. By networking with these people you both Win. To try and start up a mowing division you will need to spend time and money. This Time and Money could better be put to use in the Application Business. If California prices are like Florida there is a better Profit margin in Spraying and less head aches.

                Been there done that. In January of this year I sold off about 200 residential mowing accounts. However I kept the Spraying.

                Comment


                • #9
                  Thank you: Stephen M., P&C Lawn Care, MGO, Sharp and Ric.

                  You guys have given me a lot to think about.

                  I'm new to all this and want to stay focused on applications, but I also need the business and when my buddy mentioned all these potential maintenance accounts my eyes got big.

                  Can't say for sure what I will do, but at least now I have some great advice to consider before I decide.

                  Thanks again

                  Ken

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