I have always ask you several times this questions regarding income and never got a response until you finally made a Video. I will say it answer 70% of what I was looking for a long time. Once again Thank you Mike. God bless you, your family and your Business. Que Dio siga Bendiciendote con Mucho Amor. Hasta pronto Amigo.
Or at least $100K starting around December 20. We don't have any Debt. We buy everything we need with our credit card and pay it all once is Due. We pay our Shop the full year. Everything is pay in full for the Entire year. After watching this Great video has finally answered my long time question.
Great video… we have been in business for 12 years and this video is spot on. Now we do over 3 million and it was scary BecuAse we weren’t making money like this video said during growth…. Affordablepatio is our channel …. Great great video
I think stabilising the business is often overlooked and why many businesses fail. How did you decide when it was time to change focus from growth? Did you have a turnover target, or was it a gut feeling thing? There is a hell of a lot of value to be taken from these videos on your business mindset. Thanks for sharing!
We just did our budget yesterday with Jim Huston. We only focused on our core business of lawn / landscape maintenance. On a conservative budget with just over $1M in that revenue, with my salary (absent owner) we come in at 17.1% profit. Without me we are 23.7%. This would be growth of 22% and we’ve done about 60% growth the past few years. So, your numbers are certainly tested AND good!
@@mackeejack6731I tried and she said you were better overall in bed, but that I was more acrobatic and flexible. Her downward dog is exquisite. Congrats.
Thank you, Mike! That explains why we're struggling to keep cash in the bank. We grew from 100 k to 300 k last season and I've been feeling low about our dismal profit margins! Now the question is do we grow fast again this year and then take a slower year the following season or do we do that this year? I'll have to figure that one out, and this is a great resource for that!
@@abclawnworks9127 yes I agree. We can afford to keep our owner's salary the same this season no problem, and we've got some good financial backing from a very kind (and generous) family member, so I'm leaning towards growing more this season.
I have 2 questions. And I’m going to ask the answer to be explained like I’m 5! Do you do either one or the other, include the owners salary in your direct cost and tack on your desired profit margin as well of 20-30%? Or do you just do one and not the other. The reason I ask is I work in another profession where after the labor and materials are decided we add our desired profit ($100/sq). After this the owner takes out 10% overhead and profit for the business before I get paid. The other question is where in your example is your personal life expenses like my house, my wife’s car, etc. Does that come out of the 20-30% markup? Thanks Also, what are your thoughts on a startup company offering multiple services such as lawn care, herbicide, hedge trimming, and creating an annual payment plan for all services like a bundle that they pay annually so that you have year round income?
Once again Mike what a great Video. Our Company makes close to $500,000 a year. We are 9 people total including my dad and I. Our yearly salary is around $60k each. Our forman make around $4k a month. We always try to keep $100k by December for winter
Thank you so much for making these inspiring videos and sharing your successful information with everyone. I can’t wait to join your company and be an important part of your growth. Keep doing an amazing job sir.
Man, I am always forgetting to like your videos they are also hopeful no matter where you’re at in your business just to refresh, could you maybe put a little reminder at the end of your videos to Hit the like button lol
Where is the "Owners Salary" factored into these numbers ? Just from profit "take home pay" ? Or is "take home pay" profit AFTER and owners salary has been paid ? Hope that question makes sense.... and what percentage of revenue are using to pay an "Owners Salary" ?
I didnt take owner salary into account. That is subjective to the owner and can be taken from the profits of the business ... or left in the business as retained earning (cash reserves)
I may have missed this, but are you assuming that you as an owner are taking a salary that is included in the Direct Labor section? Is this profit on top of that?
Maybe a dumb question, but do you account for tax deductions when calculating your net take home? Or, is this simply a revenue minus expense calculation? I’m asking because obviously there are reasons why you would want to lower your taxable income and strategies to do so. Also, I want to be sure I’m benchmarking my own business compared to this correctly. Appreciate the content.
Ok, Now things make more sense to me. I have been trying to hit 20% profit after paying myself a salary. It's been difficult to get there but that is still my goal.
Hey Mike, love the videos. When you talk about yearly REV, can you distinguish between what yearly rev should be, between year round cutting in Florida vs seasonal in a place like Vermont?
I’ve seen this be done in every size market and demographic. Smaller towns is actually better many times since word of mouth travels faster and less price competition
Mike, I have been watching you for over a year now. I am a bit confused and it’s only because I’m adding your commentary to the backdrop of Greg CrabTree’s theory of the owner/owners earning a market based wage. In one of your videos with Connor, he was only earning 30K as the owner. In these scenarios I find it hard to believe that the owner even at a million dollars cannot earn a market based wage for a million dollar enterprise. Thoughts? (More comment than question…?)
Profits from the business are unlinked from the wages/distributions/salary that an owner chooses to take… that’s why I didn’t include that part in the video. In the case of “Connor” they will grow almost 50% this year… they do not fit into the case I’ve created here but are planning to do it next year and increase profits instead of growth
As long as you maintain it well enough it shouldn’t be too bad though. We spend very little on new equipment once our locations achieve targeted growth
@@MikeAndes I’m a certified mechanic and maintain flawlessly. It all breaks down or becomes unreliable. By the time things are paid off it’s pretty much time to replace them. Not to mention paying a shop to maintain and repair things is more expensive then what a landscaping coming makes per hour. It’s less expensive to stop landscaping and repair it myself. This whole industry needs to change. In an industry with such low hourly rates, profit margins need to be much higher. A solo operator can’t profit enough to expand.
@@colestaples2010 Mike’s main shop uses push mowers for most properties so costs are lower than industry norms. Also, I started solo and will have 12 vehicles and 15 field workers going into the 2022 season. Explain to me how a guy starting from solo (not to mention not charging near enough) has done it. All the large companies that I know ($1M and above) started solo.
@@colestaples2010 our starting price for weekly mow is on average $7 more per week than other service providers. You don’t get to and past $1M in annual maintenance revenue without having a clue..
Another for free trick? I strongly doubt that. This is marketing with a supposedly social twist. Do other landscapers too. The income from UA-cam for these videos exceeds the bill to mow this grass regularly.
Have you noticed your views are dropping on your videos? You might want to think about what is causing the views dropping. I just started watching you and in a matter of one night scrolling through your videos . Are you the badass Owner I started watching at the very beginning still that goes out and mows the yard to verify the customer or are you a fast speaking sales men following in the footsteps of McDonald's shitty work? I am betting your have higher customer acquisition and employee turn over not due to crappy employees or bad customers but you completely changing your business model .
I enjoy views but I enjoy helping business owners grow and improve their business more. The deeper content gets less views but does more for the viewer. I am aware. My goal is NOT to become a UA-camr or get 1M subs this year. I will get 1M subs, but in 10 years… and those subs will be religious about the deep business content I provide and not just skin-deep entertainment. Also, I simply don’t have the time to be out mowing anymore. I have over 50 franchisees I feel responsible to take care of and help them grow their businesses
I have always ask you several times this questions regarding income and never got a response until you finally made a Video. I will say it answer 70% of what I was looking for a long time. Once again Thank you Mike. God bless you, your family and your Business. Que Dio siga Bendiciendote con Mucho Amor. Hasta pronto Amigo.
Or at least $100K starting around December 20. We don't have any Debt. We buy everything we need with our credit card and pay it all once is Due. We pay our Shop the full year. Everything is pay in full for the Entire year. After watching this Great video has finally answered my long time question.
Great video… we have been in business for 12 years and this video is spot on. Now we do over 3 million and it was scary BecuAse we weren’t making money like this video said during growth…. Affordablepatio is our channel …. Great great video
I think stabilising the business is often overlooked and why many businesses fail. How did you decide when it was time to change focus from growth? Did you have a turnover target, or was it a gut feeling thing?
There is a hell of a lot of value to be taken from these videos on your business mindset. Thanks for sharing!
We just did our budget yesterday with Jim Huston. We only focused on our core business of lawn / landscape maintenance. On a conservative budget with just over $1M in that revenue, with my salary (absent owner) we come in at 17.1% profit. Without me we are 23.7%. This would be growth of 22% and we’ve done about 60% growth the past few years.
So, your numbers are certainly tested AND good!
Please don’t steal my wife
@@mackeejack6731I tried and she said you were better overall in bed, but that I was more acrobatic and flexible.
Her downward dog is exquisite. Congrats.
Thank you, Mike! That explains why we're struggling to keep cash in the bank. We grew from 100 k to 300 k last season and I've been feeling low about our dismal profit margins!
Now the question is do we grow fast again this year and then take a slower year the following season or do we do that this year?
I'll have to figure that one out, and this is a great resource for that!
I like the idea of keep growing if you can afford to not earn a lot. Then in the future, you can earn much more.
@@abclawnworks9127 yes I agree. We can afford to keep our owner's salary the same this season no problem, and we've got some good financial backing from a very kind (and generous) family member, so I'm leaning towards growing more this season.
I have 2 questions. And I’m going to ask the answer to be explained like I’m 5! Do you do either one or the other, include the owners salary in your direct cost and tack on your desired profit margin as well of 20-30%? Or do you just do one and not the other. The reason I ask is I work in another profession where after the labor and materials are decided we add our desired profit ($100/sq). After this the owner takes out 10% overhead and profit for the business before I get paid. The other question is where in your example is your personal life expenses like my house, my wife’s car, etc. Does that come out of the 20-30% markup? Thanks
Also, what are your thoughts on a startup company offering multiple services such as lawn care, herbicide, hedge trimming, and creating an annual payment plan for all services like a bundle that they pay annually so that you have year round income?
Once again Mike what a great Video. Our Company makes close to $500,000 a year. We are 9 people total including my dad and I. Our yearly salary is around $60k each. Our forman make around $4k a month. We always try to keep $100k by December for winter
60k off 500k! That’s super low!!!
@@colestaples2010 he said EACH. That is a VERY solid biz at 500k. Especially with 100k still in the bank at end of year.
@@abclawnworks9127 that’s not money in the bank at the end of the year. That’s his entire salary for the year. That’s terrible from half a million
@@colestaples2010 only because the two 60k salaries. That has a huge impact.
@@abclawnworks9127 no, it’s because his profit is super low!
Thank you so much for making these inspiring videos and sharing your successful information with everyone. I can’t wait to join your company and be an important part of your growth. Keep doing an amazing job sir.
How about buying lawn care businesses as a strategy to growth
Appreciate what you’ve done for the industry
Man, I am always forgetting to like your videos they are also hopeful no matter where you’re at in your business just to refresh, could you maybe put a little reminder at the end of your videos to Hit the like button lol
😂 I appreciate it! SMASH the like button 🌟🏆
Eye opening video and information.
Really good to see helps bring reality to expectations
Excellent information Mike! Very realistic and accurate!
Where is the "Owners Salary" factored into these numbers ? Just from profit "take home pay" ? Or is "take home pay" profit AFTER and owners salary has been paid ? Hope that question makes sense.... and what percentage of revenue are using to pay an "Owners Salary" ?
I didnt take owner salary into account. That is subjective to the owner and can be taken from the profits of the business ... or left in the business as retained earning (cash reserves)
Dude, excellent video. Excellent!
I may have missed this, but are you assuming that you as an owner are taking a salary that is included in the Direct Labor section? Is this profit on top of that?
No salary is included in the numbers (for sake of simple math)
I think this kind of profit needs to be after the owners salary is paid. The whole business needs to change. 50% profit should be standard
Awesome, thanks for making this video Mike!
Maybe a dumb question, but do you account for tax deductions when calculating your net take home? Or, is this simply a revenue minus expense calculation? I’m asking because obviously there are reasons why you would want to lower your taxable income and strategies to do so. Also, I want to be sure I’m benchmarking my own business compared to this correctly.
Appreciate the content.
Mike, at what year should you start making money?
Depends on speed of growth. You can make money from month one if you aren’t advertising, hiring, buying equipment
Good clear content. Thanks, Mike.
It's a bit confusing. It appears that the owners salary is included in the net take home category. Is this correct?
Yes
Ok, Now things make more sense to me. I have been trying to hit 20% profit after paying myself a salary. It's been difficult to get there but that is still my goal.
I been in business solo for 5 months now and I’m up $22k idk if that’s good or not.
How are you going now?
Hey Mike, love the videos. When you talk about yearly REV, can you distinguish between what yearly rev should be, between year round cutting in Florida vs seasonal in a place like Vermont?
There is no actual answer. We operate 8 months out of the year where I’m at and have a $1M+ revenue maintenance business.
Great information
Thanks a lot mike!
How to buy tickets
LandscapeBusinessCourse.com/conference
Just applied to Redmond Wa Augusta location, hopefully you guys have a spot open right now!
Redmond hasn’t opened yet. Marysville or North Bend would be good options close by ✅
@@MikeAndes Okay, I applied to Marysville 👍
This video get me so excited. Just saying.
Saturday Upload 👍👌
So how can someone make a 100k by themselves, is that just cutting are is that with flower beds as well???? Just asking to put together a game plan...
I have a couple videos on that $100K marker specifically
Let’s say you cut 75 neighborhood homes a week for 32 weeks at an avg of $40 each. That would be 96k. Very doable.
Thank You !!!!
Net take home is after taxes, correct ?
Yes.
Make as much as you can....
Thanks!
You are welcome! Thank you for the support!
Good video my guy
You have a lot of faith…. You haven’t watch it yet 😂😂
@@MikeAndes LOL called him out!
@@MikeAndes they all are, I kinda knew when I posted that that there was a chance somone called me out but didn't know it would be you😂
Love it
Solo operation won’t bring in 100k unless you live in a really big city with wealthy leads. Cut this in half almost for regular areas
I’ve seen this be done in every size market and demographic. Smaller towns is actually better many times since word of mouth travels faster and less price competition
Mike, I have been watching you for over a year now. I am a bit confused and it’s only because I’m adding your commentary to the backdrop of Greg CrabTree’s theory of the owner/owners earning a market based wage. In one of your videos with Connor, he was only earning 30K as the owner. In these scenarios I find it hard to believe that the owner even at a million dollars cannot earn a market based wage for a million dollar enterprise. Thoughts? (More comment than question…?)
Profits from the business are unlinked from the wages/distributions/salary that an owner chooses to take… that’s why I didn’t include that part in the video.
In the case of “Connor” they will grow almost 50% this year… they do not fit into the case I’ve created here but are planning to do it next year and increase profits instead of growth
@@MikeAndes Perfect response. This is only tied to the
profits... Got it! Keep doing the good work. See you in January.
Everybody thinks starting a business means you’ll get rich fast. So much not the case.
You also can’t ever stop buying equipment, it doesn’t last long enough
As long as you maintain it well enough it shouldn’t be too bad though. We spend very little on new equipment once our locations achieve targeted growth
@@MikeAndes I’m a certified mechanic and maintain flawlessly. It all breaks down or becomes unreliable. By the time things are paid off it’s pretty much time to replace them. Not to mention paying a shop to maintain and repair things is more expensive then what a landscaping coming makes per hour. It’s less expensive to stop landscaping and repair it myself. This whole industry needs to change. In an industry with such low hourly rates, profit margins need to be much higher. A solo operator can’t profit enough to expand.
@@colestaples2010 Mike’s main shop uses push mowers for most properties so costs are lower than industry norms. Also, I started solo and will have 12 vehicles and 15 field workers going into the 2022 season. Explain to me how a guy starting from solo (not to mention not charging near enough) has done it. All the large companies that I know ($1M and above) started solo.
@@abclawnworks9127 probably because your price is the lowest in town
@@colestaples2010 our starting price for weekly mow is on average $7 more per week than other service providers. You don’t get to and past $1M in annual maintenance revenue without having a clue..
I operate a tree company. I think I will move into lawn care based on these numbers...
What numbers are you seeing in your tree work? I do tree work too and I feel that these numbers are fairly comparable
My truck alone was 55,000
Another for free trick? I strongly doubt that. This is marketing with a supposedly social twist. Do other landscapers too. The income from UA-cam for these videos exceeds the bill to mow this grass regularly.
UA-cam ad revenue is less than 0.5% of my revenue
That profit is 😢.
👍👍👍👍
Every time I watch your videos I’m more focused on leaving this business. Companies that set such low rates screw it up for all of us.
Bro ya scared to pay more employee costs?
Have you noticed your views are dropping on your videos? You might want to think about what is causing the views dropping. I just started watching you and in a matter of one night scrolling through your videos . Are you the badass Owner I started watching at the very beginning still that goes out and mows the yard to verify the customer or are you a fast speaking sales men following in the footsteps of McDonald's shitty work? I am betting your have higher customer acquisition and employee turn over not due to crappy employees or bad customers but you completely changing your business model .
I enjoy views but I enjoy helping business owners grow and improve their business more. The deeper content gets less views but does more for the viewer. I am aware. My goal is NOT to become a UA-camr or get 1M subs this year. I will get 1M subs, but in 10 years… and those subs will be religious about the deep business content I provide and not just skin-deep entertainment.
Also, I simply don’t have the time to be out mowing anymore. I have over 50 franchisees I feel responsible to take care of and help them grow their businesses
Running a business is so much nonsense for only 200-250k