The best most honest video I ever seen. I've been doing this for 15 years and do the exact same thing just as a solo operator and make a great living with a debt free and stress free life. I work 120 days a year. 4 day work weeks are the way to go.
I agree. I learned very quickly this business is to labor intensive to kill yourself. I also don't want a huge multi million dollar operation. I want enough money to be wealthier than the average person, but less stressed than all.
Employees kill scaling every time. I’ve been in this for a good 10 years. Ton of companies in my area. Employees go from company to company. Being stress free and happy is the most important thing. Buying accounts is supper stressful. I make it pay off, then keep the good ones. I think after all this time doing this, I know the type of property’s I like maintaining. I work for very wealthy customers, it’s been draining tying to keep them happy. This business is like a bar of clay. Form it to what you want, once your not working in fear, you have money saved up, a few bills etc. I payed my house off, and have little debt. Everything last for a season, things can turn up or down. God bless.
Man you are a real dude. A man of my own heart. Give sound information and realistic numbers. The thing is that everybody is not driven enough to stay on top of the game; however, if they are, you are giving info that is valuable. Mad respect for you and Florida Turf Pros. I will continue to watch and support. Thanks again.
I can’t thank you enough for the tips! I’ve spent the last 3 years mowing out of my family’s old minivan, and since I just started college I decided to go all in and scale up to a truck and trailer. Your videos are super helpful with helping me learn how to effectively market my business and maximize profits and if I could subscribe more than once I would! Thank you for all the awesome videos!!!
Oh, and you need to take at least one or two accounting and finance courses... You'll hate them probably... But I promise, it will be THE BEST INVESTMENT you will make in your business. Do it.
Your business model appears to be a model for success providing good health, wealth and happiness in a well balanced life. I like your attitude about customers because your crews can only be as good as the clients you give them to work with. Thanks for being honest.
I've been in business for 31 years! $ in a safe in my 2600 sq ft house..paid for. I hate banks! $ today 12/12/19...I do all my own work no crew! 4 hours $500 in my pocket!
@@abdulnsheikh7009 personally it’s pretty low risk compared to other businesses. Just buy a cheaper mower, weed eater, edger and blower and get started
Did you do it yet? Good upside and minimal downside. Need under $1,000 to start. Get insurance though from a place like next insurance to start and upgrade/change as you get bigger.
The transparency in your videos is extremely helpful... I'm a lawn care owner/operator in Canada hoping to grow the business and I honestly believe your advice will benefit us greatly
Thank you for putting out quality videos. You’re one of the few lawn care channels that don’t use clickbait titles, you don’t ramble for 10 minutes before you get to the point. Thank you for not doing the same review videos of the same products. Thank you for not having annoying background music, too.
You're welcome. I value the time that anyone spends watching the videos, so I really try to get to the point as quickly as I can without wasting too much time. Thanks for noticing.
Thank you, very helpful information. I'm going for 1/4 acre to 1/2 acre yards with a push mower, echo split boom with a string trimmer, and an edger attachment and a handheld blower.
Fantastic information! As a guy who is new to the industry I sometimes get frustrated sorting though what I consider bad information. With your videos I don't have to worry about that. Thanks Jonathon!
Johnathan, Thank you so much! Your wisdom and generosity with sharing your knowledge is so empowering. I've been banging my head against the wall for so long and your clarity and insight is a beacon at my feet. I'm starting to see where my mistakes have been made and am going to start making changes. Now. God bless you, sir.
Awsome video! Really appreciate all the value you add for free at that. It definitely does not go unnoticed. This was my first year in business there were alot of ups and downs but even more valuable learning lessons. Happy holidays my friend!
If you want a shop start a real estate investment business. Buy the shop, then have the mowing business rent the building. Build it big enough that you can partition it and rent the other side out. The rent is a tax deduction for the mowing business, and the building is a write off for the investment business.
Thank you Jonathan! Great stuff as usual! Thank you for not caring what some people will think and caring to help others get the facts about what is realistically possible!
About as good of a lawn care business video you will find out there. Thank you for all your content but this one in particular knocked it out of the park
Thanks! I was pretty excited to put this video out there, because I don't know of any other companies who are putting out actual numbers for others to see and get an understanding of what's realistic under different business strategys.
I had a good sized small engine dealer ship when I was 30 years old. I didn't know what I was doing, I learned a lot. I was in cutting other dealers price, trying to get more business. Ended up putting myself out of business. My advice to new business owners is don't try to grow too fast, only take business that you can make money on. Only take on business that you have equipment to do. Most successful landscaper I know only mows yards in one large subdivision. If you don't live in that subdivision, he does not mow your lawn.
Thanks! I tend to post more during the fall and winter months as I have more down time for the grind of the day to day operations. You should see more consistent content from me at least until Spring =)
Good evening Sir. I hope you had a good week. I greatly appreciate everything you've put out. I'm a independent landscaper and searching for a bit of guidance to continue work. I'd appreciate your help. Thank you so much. Donna
You just had out a survey on "which type content y'all want to view?" I think if you sprinkle in an equipment over view, mower brand update/ brand flaw discoveries... you'd be considered the best in the mowing vlog business (after viewing this.. great info Sir. I'm in Melbourne fl and it's ridiculously competitive here and amazing how cheap the bigger Co s are doing it for)
This was probably the 2nd best video you've put out! This was very informative and the fact that Your sharing your profits is amazing, Nobody else does that . Thank you. I think the best video that you put out Was your hourly rate video. Not everybody can charge what you charge but, Maybe some can charge more depending on location. I think it's awesome that you have a 4 day work week Not forgetting to live life. Keep up the great work on your videos.
I couldn't agree more about not forgetting to live life. Here is a video I did on this topic.. If you haven't seen it, I think you will enjoy it. ua-cam.com/video/-Fihzg41wdM/v-deo.html
Im in New Zealand and have been running lawn care for 5 years now, we pretty much mow all year and do hedges and weed control onto of mowing, After watching guys like you on youtube this last year, I have gone from me and one employee at about 15% profit, to solo so far the first few months of our season here and most likely staying solo and now getting more work done at higher value and my profit margin has rocketed to about 40%
Does it stay busy November through March? This is the down time for me in Washington D.C. When the grass doesn't grow. I would Like to Do Away with the winter work all together and Move somewhere new to do lawn care if the right opportunity arose. I love having my own lawn care business but I just can't stand The cold weather and am seeking opportunities out to relocate. I know this a long shot but if you would have any interest in taking an experienced owner/operator on during the winter months, I would love to give it a shot
Awesome, glad to hear you're having some success in the industry. It really is a great industry to be in. Thanks for watching and I wish you success in the future.
I started the beginning of this summer working full time and doing my own thing on the side and have way threw I told them I quit because I wanted to build my on business so I have a lot to learn about the business side of it again thank you now I'm just trying to buy better equipment hopefully next year I can do that
Great video. Real is where it is. Just finished reading the pumpkin plan. Seems you have read it too. Thanks again for the “truth” your recommendations on books to read.
Yes, I believe Jonathan has read it. I have read it (listened while mowing actually) because I think Jonathan recommended it in a video a couple years ago. Great book!
@@FloridaTurfPros maybe I didn't listen to the book while mowing - I just searched my email - I got it from Audible on Jan 24, 2017 at 3:06 AM - probably right after watching your video recommending it! Lol.
Great video so far. Love the transparency. Starting business up at the end of this year to be ready for the next season. Only thing I need right now is the truck and more customers (a few lined up).
Appreciate the video! Without getting to specific, what is the range of you paying yourself a “healthy salary”? A healthy salary is a subjective perspective :). Thanks!
Love this video! Thanks for being real. This type of video really sets you apart from the rest of the lawn care UA-cam community. What is your maximum distance you travel? I know cutting down the travel time is very important in your biz. So do you determine max distance from your home/storage or do you take a town on Monday for example and determine a max distance based on where you start for the day? Thanks for the great content!
I target only a few zip codes, and then only certain neighborhoods within those zip codes. We probably service a 12-15 mile radius. The one exception where I will travel for one or two homes is if those homes are in a promising neighborhood that I want to have a lot of homes in. I will give it a few months with heavy post card saturation, being seen in the neighborhood, and talking to neighbors. If I can't land numerous homes within those neighborhoods I will refer the original client to another lawn care service.
thanks, great info for me, im solo, finished first year, plan on staying solo, want to grow slow and steady, concentrating on mowing and trimming residentials....couple of small businesses.....so your info is what im looking for.....thanks
Great video. I don't understand how you know what you are making if you cannot get exact numbers as to how much you're spending in gas with equipment, the wear and tear on equipment being used and the wear and tear on vehicle to get you to and from the job sites. I enjoy working with numbers, just don't know where to pull them from on the items I have listed. Also, I have asked and been told it is very expensive to speak with a financial consultant as I want to know what I would need to charge to be able to make enough to pay for my equipment, vehicle and pay myself my current salary plus. You seem to have all of this down and I am glad to see you share information in videos. I will say that everyone in video like this give great information, but I would like to see a video where someone breaks it down elementary style for those of us that need it. Thanks again for sharing.
Did you ever figure it out? Expenses are easy to calculate after doing some jobs and easy to predict prior to. Vehicle payments are fixed. Say you have a $500/month truck payment. Vehicle gas is easy to project based on estimated mileage needed per week divided by estimated MPG divided by cost per gallon. Driving 300 miles per week at 15 MPG is 20 gallons needed. 20 gallons at $5/gallon is $100 per week or $400/month (rounded). Vehicle and business insurance is also fixed and know by calling your insurance company (call it $3,000/year). Estimate oil changes, tires, and other maintenance items as needed and adjust when things change. Assume a set of tires per year at $1,000, 10 oil changes at $100 each for $1,000 per year and now estimate other items at whatever (call it $2,000). So now you have yearly vehicle/insurance expenses of (500x12)+(400x12)+3000+1000+1000+2000=$17,800/year. Round up to $18,000 is $1,500. Actual on-site expenses are just as easy. You know the cost per month to buy (if bought on credit). Assume it is $200/month or $2,400/year. There are stats for fuel consumption per piece of equipment but assume it is 1.5 gallons per hour of use. The equipment probably only runs for a 3/4 hour per hour of work time (you're driving to the job, loading, unloading etc). 40 hour work week uses 30 hours of fuel at 2 gallons per hour so 45 gallons at $5/gallon is $225 per week or $9,000 per year (most likely less). Equipment maintenance should/could be figured at about $10/hour of run time so about $1,200 per year basing on the above 40 week period. Trimmer line can be included in the $1,200 as well as all 2-stroke oil and any plugs/belts. $2,400+9000+1200=12,600 (round to $13,000) or $1,083/month. Total yearly operating expenses before salary/wages/taxes is $18,000+$13,000=$31,000. You need $31,000/year just be able to mow/trim 40 hours of lawns per week for 40 weeks. $31,000 year/40 weeks/40hours=$19.375 per hour needed just to break even. You will need to pay/be paid a minimum of $25/hour including taxes, insurance, payroll taxes etc. As a business owner (even if you are the only one working it) you need to add in profit margins for the unexpected as well as "profit". A minimum of 30% should be added above all expenses. The expenses are $20 in operating expenses +$25 in worker expenses totaling $45/hour. Add in 30% profit margin minimum of $15/hour gives you a minimum necessary income of $60/hour for 40 hours per week. Since mow times vary, it would be prudent to pad the per hour rate. That is why many charge $75+ per hour. 40 hour work week with 15 minutes between of driving/non-billable production means there is only 30 "mowing" hours per week. A lawn that takes 15 minutes to mow/blow/trim needs a minimum charge $25 but most/many companies have a $35 minimum rate. That is 3 lawns per hour. However, I understand you can't average 3 lawns per hour for 8 hours doing 24+- lawns per day as a 1 man shop. It seems like it is closer to 15 small lawns per day per person. Yes it is somewhat contradictory I know. 15 lawns per 8 hour day at $35 each is $525 per day or $62.625 per hour. With these numbers and assuming no other expenses, you will make a decent hourly rate and add about $16,000 per year to the company savings account. It gets more profitable if you streamline things as well as get route density along with charging a bit more money. I hope this helps people.
I'm coming up on my first year of being in business tree trimming and landscaping. Your videos are really great. Full of useful information. Thanks for making them.! Bynum Tree and Landscape Mesa, Arizona
Jonathan excellent video. This year I overbooked myself and talk about stress. Sometimes lessons are learned when you go through things like that. I'm sure you've talked about this in the past how long did it take you to do card on file and then do you charge it before you cut. Because where I'm at I can't imagine all my customers doing that. just curious. If I could call you one day to send you a video of my setup I'd be happy to do it.
I started card on file our second year in business. I still have 15 clients who don't use it. About 250 that do. I've only had two occasions where new clients didn't go with us based on card on file requirement... and I have a very good feeling that requiring card on file weeded those bad ones out.
Good numbers....we are a little bigger and have good numbers as well as I'm pretty neurotic about efficiency. I certainly can't say it is relatively stress free like you can though. Good work, that's super valuable!
Thanks for your insight.. Ya, there are just some stress factors that are easier to control than others.. For example it's a lot easier to drop a stressful client and replace with a better client than it is to say drop a stressful employee and replace with a new one. I figure I'm gonna reduce all the things that inject stress into the business as much as I can.. it has caused us to grow slower, admittedly though.
I think there's a lot of value in watching videos and studying what other business owners are doing in other related industries. I learn from house cleaning businesses, real estate businesses, and other mom and pop shops. It's very wise to stay open and look outside our industry as to what is working for others.
For a lawn care company you are killing it, but for the same amount of effort, you could triple your money having a business in the construction industry.
AJourneyOfYourSoul true but, don’t invest in something you don’t know how to do.... construction takes more guys, more materials and is technically a finite job. Lawn mowing will be done at least all spring and summer and can lead to all those other landscape jobs
A quick google search shows that construction industry is only around 20-30% profit margins too. And that’s the good ones. The low ones show right around 10%. There are sooo many moving parts to that business too. Many variables that can cut your profits down by huge percentage points in lawn care it is so much easier to make up profit margins. Construction has to deal with a multitude of suppliers that they depend on to make the job happen. We depend on our crews and our one to two distributors to get our equipment. So effort is way more in construction.
Great info! But what do you say to the clients you are getting rid of? Do you give them an option of a price increase to keep them or do you just say "we are not making enough money per man hour off of you anymore"...thanks!
If they are a good client still within our service area and just the pricing is wrong I give them an updated estimate that they have to approve. If they don't approve it, if they are a problem client, or if they are a client no longer inside our service area I will refer them to two separate lawn companies who I know do good work and tell them we are no longer able to service the yard based on service area, relationship, or pricing.
Thanks for the response! Obviously increasing prices has always been a touchy subject especially with people you have known and serviced a long time..but like you said if they are a good client they will understand. Have to maximize your time and profit, only so many hours in a day! Also, I know this is off the subject, do you have any passive income such as rental properties? Great income source especially in winter months, been thinking about doing it but never pulled the trigger yet! Thanks
I think in the top 3 best videos yet very truthful. LOT OF THESE channels I wont name any names but very misleading to new small buisness or guys thinking of starting a buisness. That's Awesome how High your profit margins are not to many people have one that high. If your making anything 15% ( Profit margin or more After a very comfortable salary is realy good.. I run 3 maintenance crews one construction crew little over half million my profit % is closer to 10 % but lots of over head shop ect. My advice to anyone wanting a shop is to hold off as long as possible save money to buy one or atleast a down payment for one. I have half Acre with one 20 by 15 office and 2 10 by 40 ft secure shipping contrainers with 8 ft fencing around the whole property. nothing fancey but room to grow and very affordable.
Sound advice. Truthfully, I would love to have a shop and hope to some day. I figure you can't go wrong with investing in land anyways. Thanks for the comment and insight.
It's tough at first, but once you get rid of some of the dead weight in your business it's crazy how fast everything improves from your profit to reduced stress. Good clients are out there.... just have to make room for them.
Telling the truth as always. What do you, when a customer writes a bad review for letting them go? We had to do damage control because of this. We also gave that customer 3 references at the end of the letter. Thanks as always...
Leaving a negative review because a company respectfully chose to part ways shows more about the individual leaving the review than the company they're writing a bad review about. The most important thing is to always remain professional in all interactions w/ clients. Keep accruing good reviews... make it a part of your routine w/ existing customers and or customers moving and leaving on good terms.. Most anyone searching through reviews will know when a negative review is unfair or unreasonable.
@@FloridaTurfPros Thanks for information. We will stay active in our reviews. We are having a drawing live on UA-cam this Sunday for all clients who choose to do a review this year. We asked them for a honest review to help our company be better for the future. Can't wait for your next real video.
I am starting out w 10 clients and a 48 in walk behind. I made decent side business money w $0 debt. Looking to take this full time but not sure about taking on more debt as I have personal debt to pay off. What is your thought on debt% for startup? I like your comment on the ROI for the shop. Before I buy something I stop and ask myself how will this make me money- I don’t buy much great video
Stay away from excessive debt always. The exception would be if you use debt to finance a mower that allows you to be more productive and more comfortable. Don't skimp on the equipment.
Buy a $300 sulky for the walk-behind and you can work faster and charge the same which allows for more clients per week resulting in more money per week.
A lot of folks only talk about top line revenue, what folks don’t understand is top line revenue means absolutely nothing if you don’t have the whole picture.
Peeps. I have had a half dozen or so legit businesses in my life. To pull 29% after paying ones self is above incredible. I have had a couple that hovered around 20% those are fun. The ones that generate 5-10% are stressful. Any hiccup and this month is ZERO profit.
I will admit that 29% will not be sustainable for much longer. I don't see any where else we can reduce non-billable time and as we grow those margins can only shrink. Thanks for the insight and comment.
@@FloridaTurfPros If you got business background and understand margins you will be just fine. Only add top line revenue if it translates min 20% to bottom line. By next your you will be doing $400k with 26% margin and little stress! 👍
Florida Turf Pros I’m a Novice here (starting my business in March with marketing campaign) would taking on commercial work help you maintain or even exceed 29% profit margins?
I would take 29% all day nice job! Solo and totally stress free here. Clients come and go. The yard changing is such a pain. Starts with a huge nice large square lot then after 3-4 years now a trampoline,pool,sand box, fire pit, kid toys,dog toys and three Great Danes haha. End of year if I am not making a certain profit off a client they are replaced period. Just last month 3 new clients. Planning ahead for next year.
Dandy Lawn and Maintenance Haha, I absolutely HATE trampolines. And yes, the worse is when the yard starts off as an easy square then turns into an obstacle course at the end of the year. We all have the same difficulties. 😂
Hey Jonathan, yet another great video!! What do you use to keep up with your P&L? I have no experience what so ever with finance and I’d love to pick your brain on your system and how you get such great returns and profit margins. I’m looking to go full time next year but I’m scared sh:!less. Any help would be greatly appreciated. I’d even pay you for a phone call. Hahaha. Keep up the hard work and again thank you for the awesome content.
Can you please make a video explaining how you retain customers not on contracts meaning when they initially call and you set them up biweekly for a price and then after let’s say 4 visits they say hey we bought our own mower we no longer need you. How do you handle/prevent that from happening. Thanks so much in advance
Hi Johnathan, Unrelated question, Im starting up just lawn cutting and hedge trimming - No Landscaping - In Palm Coast Florida. Do we have to collect Sales Tax for our services, Im under the impression, NO. Can you answer this.
Thomas Smith service business does not need to collect sales tax as long as you’re not reselling product or upcharging on materials/plants/supplies etc
great profit margins, I take home more in my pocket than guys running 3 time my size, they would rather grow the company and have a name than grow there wealth I guess, I guess they can sell later but I'm building my retirement in different ways I guess
That's right... my lawn business is simply a tool for improving my overall equity. I'm more concerned with improving my overall wealth than I am showing off a big revenue business.
Who in their right mind would pay $2,000 per account? That is a $50/week account for 40 weeks just to break even in 1 year. Unless there is an iron-clad contract with the clients, there is no guarantee you will keep the business for a solid year. Never mind the following year.
Terrific information! Question... you mentioned you pay yourself a healthy salary. Do you find that when you do that, you get crushed with the matching employer tax?
Jerry’s Lawn Service I pair myself a fair wage for my position. Any profits above my salary the business does not pay self employment tax on. But if the IRS finds out I am taking a $15,000 a year salary with a business that is profiting $180,000 then I’ll have an audit on my hands in no time. That’s why I pay myself a real salary from the business. Keeping things on the up and up.
As my second year of being a small lawn care and irrigation business owner I would like to know how do you prep up for the following season as this year is ending. Mainly on how you think is more efficient to advertise and to close deals. Thanks so much for your awesome videos of inspiration and advise ! Good bless !
THIS is why I watch your videos. Freakin quality content!!! Good stuff.
Thanks!
me too...great info for me.....
Great info
The best most honest video I ever seen. I've been doing this for 15 years and do the exact same thing just as a solo operator and make a great living with a debt free and stress free life. I work 120 days a year. 4 day work weeks are the way to go.
I agree. I learned very quickly this business is to labor intensive to kill yourself. I also don't want a huge multi million dollar operation. I want enough money to be wealthier than the average person, but less stressed than all.
Employees kill scaling every time. I’ve been in this for a good 10 years. Ton of companies in my area. Employees go from company to company. Being stress free and happy is the most important thing. Buying accounts is supper stressful. I make it pay off, then keep the good ones. I think after all this time doing this, I know the type of property’s I like maintaining. I work for very wealthy customers, it’s been draining tying to keep them happy. This business is like a bar of clay. Form it to what you want, once your not working in fear, you have money saved up, a few bills etc. I payed my house off, and have little debt. Everything last for a season, things can turn up or down. God bless.
Man you are a real dude. A man of my own heart. Give sound information and realistic numbers. The thing is that everybody is not driven enough to stay on top of the game; however, if they are, you are giving info that is valuable. Mad respect for you and Florida Turf Pros. I will continue to watch and support. Thanks again.
I can’t thank you enough for the tips! I’ve spent the last 3 years mowing out of my family’s old minivan, and since I just started college I decided to go all in and scale up to a truck and trailer. Your videos are super helpful with helping me learn how to effectively market my business and maximize profits and if I could subscribe more than once I would! Thank you for all the awesome videos!!!
Keep crushing it. Run your business w/ a good plan and you'll come out ahead of all your college classmates. w/ no student loan debt.
Oh, and you need to take at least one or two accounting and finance courses... You'll hate them probably... But I promise, it will be THE BEST INVESTMENT you will make in your business. Do it.
Gold! Certainly answered my question about getting a shop versus running out of your home!
Based on your numbers your efficiency has to be spot on. Well done.
Your business model appears to be a model for success providing good health, wealth and happiness in a well balanced life. I like your attitude about customers because your crews can only be as good as the clients you give them to work with. Thanks for being honest.
I've been in business for 31 years! $ in a safe in my 2600 sq ft house..paid for. I hate banks! $ today 12/12/19...I do all my own work no crew! 4 hours $500 in my pocket!
I love it Randy.
@@abdulnsheikh7009 personally it’s pretty low risk compared to other businesses. Just buy a cheaper mower, weed eater, edger and blower and get started
Did you do it yet? Good upside and minimal downside. Need under $1,000 to start. Get insurance though from a place like next insurance to start and upgrade/change as you get bigger.
The transparency in your videos is extremely helpful... I'm a lawn care owner/operator in Canada hoping to grow the business and I honestly believe your advice will benefit us greatly
Thank you for putting out quality videos. You’re one of the few lawn care channels that don’t use clickbait titles, you don’t ramble for 10 minutes before you get to the point. Thank you for not doing the same review videos of the same products. Thank you for not having annoying background music, too.
You're welcome. I value the time that anyone spends watching the videos, so I really try to get to the point as quickly as I can without wasting too much time. Thanks for noticing.
Listen to this brother, he is dead on I would absolutely and unequivocally back everything that he is saying 💯
Thanks for the kind words and support.
Thank you, very helpful information. I'm going for 1/4 acre to 1/2 acre yards with a push mower, echo split boom with a string trimmer, and an edger attachment and a handheld blower.
How was the first year of business?
Fantastic information! As a guy who is new to the industry I sometimes get frustrated sorting though what I consider bad information. With your videos I don't have to worry about that. Thanks Jonathon!
Christian your moments of silence are deafening. I've appreciated every video you've made. Hope I get to shake your hand one day 👊🏼🧔🏻
Johnathan,
Thank you so much!
Your wisdom and generosity with sharing your knowledge is so empowering.
I've been banging my head against the wall for so long and your clarity and insight is a beacon at my feet.
I'm starting to see where my mistakes have been made and am going to start making changes. Now.
God bless you, sir.
Awsome video! Really appreciate all the value you add for free at that. It definitely does not go unnoticed. This was my first year in business there were alot of ups and downs but even more valuable learning lessons. Happy holidays my friend!
Thank you for this Information I'm just Starting up a Small business I'm Looking For things that people are overlooking to make money in this business
That’s a great profit margin for growth and success. Thanks for sharing💯
Thank you for your transparency and the good info, and yes just keep the customers that give extra work like shrub trim, mulch ect.
Great video and info! I'm not sure WTH UA-cam did, but I had not been seeing your videos! I'm back and binge watching! 👍🏾👍🏾👍🏾😉
Absolutely awesome stuff man! Thanks for sharing!
If you want a shop start a real estate investment business. Buy the shop, then have the mowing business rent the building. Build it big enough that you can partition it and rent the other side out. The rent is a tax deduction for the mowing business, and the building is a write off for the investment business.
Just popped up on my feed. I'm at the ground floor of building my lawn business. Great video! Keep up the good work
Thank you Jonathan! Great stuff as usual! Thank you for not caring what some people will think and caring to help others get the facts about what is realistically possible!
About as good of a lawn care business video you will find out there. Thank you for all your content but this one in particular knocked it out of the park
Thanks! I was pretty excited to put this video out there, because I don't know of any other companies who are putting out actual numbers for others to see and get an understanding of what's realistic under different business strategys.
I had a good sized small engine dealer ship when I was 30 years old. I didn't know what I was doing, I learned a lot. I was in cutting other dealers price, trying to get more business. Ended up putting myself out of business. My advice to new business owners is don't try to grow too fast, only take business that you can make money on. Only take on business that you have equipment to do. Most successful landscaper I know only mows yards in one large subdivision. If you don't live in that subdivision, he does not mow your lawn.
Your last slew of videos has been fantastic and extremely informative. Keep them coming!!!
Thanks! I tend to post more during the fall and winter months as I have more down time for the grind of the day to day operations. You should see more consistent content from me at least until Spring =)
Good evening Sir. I hope you had a good week. I greatly appreciate everything you've put out. I'm a independent landscaper and searching for a bit of guidance to continue work. I'd appreciate your help. Thank you so much. Donna
Lawn & Order, that's why I follow you and Beach River you can listen to you talk about your business and know it's real. Thanks Windell
You just had out a survey on "which type content y'all want to view?" I think if you sprinkle in an equipment over view, mower brand update/ brand flaw discoveries...
you'd be considered the best in the mowing vlog business (after viewing this.. great info Sir. I'm in Melbourne fl and it's ridiculously competitive here and amazing how cheap the bigger Co s are doing it for)
Thanks for the suggestion. I think this is the route the channel is going to go.
This was probably the 2nd best video you've put out! This was very informative and the fact that Your sharing your profits is amazing, Nobody else does that . Thank you.
I think the best video that you put out Was your hourly rate video. Not everybody can charge what you charge but, Maybe some can charge more depending on location.
I think it's awesome that you have a 4 day work week Not forgetting to live life.
Keep up the great work on your videos.
I couldn't agree more about not forgetting to live life. Here is a video I did on this topic.. If you haven't seen it, I think you will enjoy it. ua-cam.com/video/-Fihzg41wdM/v-deo.html
You're a profit maximisation artist and genius. Much appreciation all the way from South Africa.
Im in New Zealand and have been running lawn care for 5 years now, we pretty much mow all year and do hedges and weed control onto of mowing, After watching guys like you on youtube this last year, I have gone from me and one employee at about 15% profit, to solo so far the first few months of our season here and most likely staying solo and now getting more work done at higher value and my profit margin has rocketed to about 40%
Does it stay busy November through March? This is the down time for me in Washington D.C. When the grass doesn't grow. I would Like to Do Away with the winter work all together and Move somewhere new to do lawn care if the right opportunity arose. I love having my own lawn care business but I just can't stand The cold weather and am seeking opportunities out to relocate. I know this a long shot but if you would have any interest in taking an experienced owner/operator on during the winter months, I would love to give it a shot
Jonathan always keeps it real🤙🏼 quarter mil in lawns is killing it 👍🏼
I’ve been following ur business model and I have grown wonderfully here in central Florida. Keep pumping out the good ideas 💡
Awesome, glad to hear you're having some success in the industry. It really is a great industry to be in. Thanks for watching and I wish you success in the future.
Very good video thank you for the info glad there are people like you out here trying to help people like me
Thanks for the feedback. It's nice to know there are people out there getting the information and using it.
I started the beginning of this summer working full time and doing my own thing on the side and have way threw I told them I quit because I wanted to build my on business so I have a lot to learn about the business side of it again thank you now I'm just trying to buy better equipment hopefully next year I can do that
Great video. Real is where it is. Just finished reading the pumpkin plan. Seems you have read it too. Thanks again for the “truth” your recommendations on books to read.
Yes, I believe Jonathan has read it. I have read it (listened while mowing actually) because I think Jonathan recommended it in a video a couple years ago. Great book!
The Pumpkin Plan is currently sitting on my desk. =) Yes, I was wondering who all may have read this book before... Fantastic read by a great author.
@@FloridaTurfPros maybe I didn't listen to the book while mowing - I just searched my email - I got it from Audible on Jan 24, 2017 at 3:06 AM - probably right after watching your video recommending it! Lol.
Just found your channel. Quality content!
Thanks! Maybe you'll stick around =)
Nice job and great advice.
Great video so far. Love the transparency. Starting business up at the end of this year to be ready for the next season. Only thing I need right now is the truck and more customers (a few lined up).
Appreciate the video! Without getting to specific, what is the range of you paying yourself a “healthy salary”? A healthy salary is a subjective perspective :). Thanks!
Awesome video Jonathan! Thanks so much but I have about a million questions for you!
Thank you for the solid info
Love this video! Thanks for being real. This type of video really sets you apart from the rest of the lawn care UA-cam community.
What is your maximum distance you travel? I know cutting down the travel time is very important in your biz. So do you determine max distance from your home/storage or do you take a town on Monday for example and determine a max distance based on where you start for the day?
Thanks for the great content!
I target only a few zip codes, and then only certain neighborhoods within those zip codes. We probably service a 12-15 mile radius. The one exception where I will travel for one or two homes is if those homes are in a promising neighborhood that I want to have a lot of homes in. I will give it a few months with heavy post card saturation, being seen in the neighborhood, and talking to neighbors. If I can't land numerous homes within those neighborhoods I will refer the original client to another lawn care service.
thanks, great info for me, im solo, finished first year, plan on staying solo, want to grow slow and steady, concentrating on mowing and trimming residentials....couple of small businesses.....so your info is what im looking for.....thanks
Good luck to you!!!
Great video. I don't understand how you know what you are making if you cannot get exact numbers as to how much you're spending in gas with equipment, the wear and tear on equipment being used and the wear and tear on vehicle to get you to and from the job sites. I enjoy working with numbers, just don't know where to pull them from on the items I have listed. Also, I have asked and been told it is very expensive to speak with a financial consultant as I want to know what I would need to charge to be able to make enough to pay for my equipment, vehicle and pay myself my current salary plus. You seem to have all of this down and I am glad to see you share information in videos. I will say that everyone in video like this give great information, but I would like to see a video where someone breaks it down elementary style for those of us that need it. Thanks again for sharing.
Did you ever figure it out? Expenses are easy to calculate after doing some jobs and easy to predict prior to. Vehicle payments are fixed. Say you have a $500/month truck payment. Vehicle gas is easy to project based on estimated mileage needed per week divided by estimated MPG divided by cost per gallon. Driving 300 miles per week at 15 MPG is 20 gallons needed. 20 gallons at $5/gallon is $100 per week or $400/month (rounded). Vehicle and business insurance is also fixed and know by calling your insurance company (call it $3,000/year). Estimate oil changes, tires, and other maintenance items as needed and adjust when things change. Assume a set of tires per year at $1,000, 10 oil changes at $100 each for $1,000 per year and now estimate other items at whatever (call it $2,000). So now you have yearly vehicle/insurance expenses of (500x12)+(400x12)+3000+1000+1000+2000=$17,800/year. Round up to $18,000 is $1,500.
Actual on-site expenses are just as easy. You know the cost per month to buy (if bought on credit). Assume it is $200/month or $2,400/year. There are stats for fuel consumption per piece of equipment but assume it is 1.5 gallons per hour of use. The equipment probably only runs for a 3/4 hour per hour of work time (you're driving to the job, loading, unloading etc). 40 hour work week uses 30 hours of fuel at 2 gallons per hour so 45 gallons at $5/gallon is $225 per week or $9,000 per year (most likely less). Equipment maintenance should/could be figured at about $10/hour of run time so about $1,200 per year basing on the above 40 week period. Trimmer line can be included in the $1,200 as well as all 2-stroke oil and any plugs/belts.
$2,400+9000+1200=12,600 (round to $13,000) or $1,083/month.
Total yearly operating expenses before salary/wages/taxes is $18,000+$13,000=$31,000.
You need $31,000/year just be able to mow/trim 40 hours of lawns per week for 40 weeks.
$31,000 year/40 weeks/40hours=$19.375 per hour needed just to break even. You will need to pay/be paid a minimum of $25/hour including taxes, insurance, payroll taxes etc. As a business owner (even if you are the only one working it) you need to add in profit margins for the unexpected as well as "profit". A minimum of 30% should be added above all expenses. The expenses are $20 in operating expenses +$25 in worker expenses totaling $45/hour. Add in 30% profit margin minimum of $15/hour gives you a minimum necessary income of $60/hour for 40 hours per week. Since mow times vary, it would be prudent to pad the per hour rate. That is why many charge $75+ per hour. 40 hour work week with 15 minutes between of driving/non-billable production means there is only 30 "mowing" hours per week. A lawn that takes 15 minutes to mow/blow/trim needs a minimum charge $25 but most/many companies have a $35 minimum rate. That is 3 lawns per hour. However, I understand you can't average 3 lawns per hour for 8 hours doing 24+- lawns per day as a 1 man shop. It seems like it is closer to 15 small lawns per day per person. Yes it is somewhat contradictory I know. 15 lawns per 8 hour day at $35 each is $525 per day or $62.625 per hour. With these numbers and assuming no other expenses, you will make a decent hourly rate and add about $16,000 per year to the company savings account. It gets more profitable if you streamline things as well as get route density along with charging a bit more money.
I hope this helps people.
I'm coming up on my first year of being in business tree trimming and landscaping. Your videos are really great. Full of useful information. Thanks for making them.!
Bynum Tree and Landscape
Mesa, Arizona
You’re welcome thanks for watching
Just subscribed. Love the realness.
Your content has just been on fire good work
Hey, it's always nice getting feedback. Thanks for the positive comment.. it lets me know people are watching and getting the info.
Jonathan excellent video. This year I overbooked myself and talk about stress. Sometimes lessons are learned when you go through things like that. I'm sure you've talked about this in the past how long did it take you to do card on file and then do you charge it before you cut. Because where I'm at I can't imagine all my customers doing that. just curious. If I could call you one day to send you a video of my setup I'd be happy to do it.
I started card on file our second year in business. I still have 15 clients who don't use it. About 250 that do. I've only had two occasions where new clients didn't go with us based on card on file requirement... and I have a very good feeling that requiring card on file weeded those bad ones out.
Good numbers....we are a little bigger and have good numbers as well as I'm pretty neurotic about efficiency. I certainly can't say it is relatively stress free like you can though. Good work, that's super valuable!
Thanks for your insight.. Ya, there are just some stress factors that are easier to control than others.. For example it's a lot easier to drop a stressful client and replace with a better client than it is to say drop a stressful employee and replace with a new one. I figure I'm gonna reduce all the things that inject stress into the business as much as I can.. it has caused us to grow slower, admittedly though.
Wow Johnthan u have some Great advice experience all that brother I can’t wait to meet you man at the expo place
Excellent channel! Sound advice that can be applied to more than just lawncare.
I think there's a lot of value in watching videos and studying what other business owners are doing in other related industries. I learn from house cleaning businesses, real estate businesses, and other mom and pop shops. It's very wise to stay open and look outside our industry as to what is working for others.
Just subscribed digging the info greatly appreciated and thanks for the info very helpful with going into the 2nd year of business
great video my friend these video truly help a lot keep em comin'
Great video. You got a good head on your shoulders man you’re going places! Keep it up 🤙🏻
Great video. no fluff
That's awesome man, very healthy numbers
These really are great videos that are applicable to most any business. Also, this dude kinda looks like the kid off Two and a half men
For a lawn care company you are killing it, but for the same amount of effort, you could triple your money having a business in the construction industry.
AJourneyOfYourSoul true but, don’t invest in something you don’t know how to do.... construction takes more guys, more materials and is technically a finite job. Lawn mowing will be done at least all spring and summer and can lead to all those other landscape jobs
A quick google search shows that construction industry is only around 20-30% profit margins too. And that’s the good ones. The low ones show right around 10%. There are sooo many moving parts to that business too. Many variables that can cut your profits down by huge percentage points in lawn care it is so much easier to make up profit margins. Construction has to deal with a multitude of suppliers that they depend on to make the job happen. We depend on our crews and our one to two distributors to get our equipment. So effort is way more in construction.
Great info! But what do you say to the clients you are getting rid of? Do you give them an option of a price increase to keep them or do you just say "we are not making enough money per man hour off of you anymore"...thanks!
If they are a good client still within our service area and just the pricing is wrong I give them an updated estimate that they have to approve. If they don't approve it, if they are a problem client, or if they are a client no longer inside our service area I will refer them to two separate lawn companies who I know do good work and tell them we are no longer able to service the yard based on service area, relationship, or pricing.
Thanks for the response! Obviously increasing prices has always been a touchy subject especially with people you have known and serviced a long time..but like you said if they are a good client they will understand. Have to maximize your time and profit, only so many hours in a day! Also, I know this is off the subject, do you have any passive income such as rental properties? Great income source especially in winter months, been thinking about doing it but never pulled the trigger yet! Thanks
I think in the top 3 best videos yet very truthful. LOT OF THESE channels I wont name any names but very misleading to new small buisness or guys thinking of starting a buisness. That's Awesome how High your profit margins are not to many people have one that high. If your making anything 15% ( Profit margin or more After a very comfortable salary is realy good.. I run 3 maintenance crews one construction crew little over half million my profit % is closer to 10 % but lots of over head shop ect. My advice to anyone wanting a shop is to hold off as long as possible save money to buy one or atleast a down payment for one. I have half Acre with one 20 by 15 office and 2 10 by 40 ft secure shipping contrainers with 8 ft fencing around the whole property. nothing fancey but room to grow and very affordable.
Sound advice. Truthfully, I would love to have a shop and hope to some day. I figure you can't go wrong with investing in land anyways. Thanks for the comment and insight.
I was hoping maybe we could chat sometime I just started my LLC and love your videos I was hoping to have a mentor in the buisness I'm growing safe :)
Thank you for the real number. I’m In the pruning phase of my business as well.
It's tough at first, but once you get rid of some of the dead weight in your business it's crazy how fast everything improves from your profit to reduced stress. Good clients are out there.... just have to make room for them.
"its gotta pass the smell test" haha! great closing line and another great video. Thank you!
Telling the truth as always. What do you, when a customer writes a bad review for letting them go? We had to do damage control because of this. We also gave that customer 3 references at the end of the letter. Thanks as always...
Leaving a negative review because a company respectfully chose to part ways shows more about the individual leaving the review than the company they're writing a bad review about. The most important thing is to always remain professional in all interactions w/ clients. Keep accruing good reviews... make it a part of your routine w/ existing customers and or customers moving and leaving on good terms.. Most anyone searching through reviews will know when a negative review is unfair or unreasonable.
@@FloridaTurfPros Thanks for information. We will stay active in our reviews. We are having a drawing live on UA-cam this Sunday for all clients who choose to do a review this year. We asked them for a honest review to help our company be better for the future. Can't wait for your next real video.
Elite Lawn Care Specialists LLP Wow!!! What a great idea to gather more reviews!!!
@@FloridaTurfPros Thanks a lot
Sound like to me your doing an great job. Great video
Slow and steady wins the race =)
I am starting out w 10 clients and a 48 in walk behind. I made decent side business money w $0 debt. Looking to take this full time but not sure about taking on more debt as I have personal debt to pay off. What is your thought on debt% for startup? I like your comment on the ROI for the shop. Before I buy something I stop and ask myself how will this make me money- I don’t buy much great video
Stay away from excessive debt always. The exception would be if you use debt to finance a mower that allows you to be more productive and more comfortable. Don't skimp on the equipment.
Buy a $300 sulky for the walk-behind and you can work faster and charge the same which allows for more clients per week resulting in more money per week.
A lot of folks only talk about top line revenue, what folks don’t understand is top line revenue means absolutely nothing if you don’t have the whole picture.
Thank you so much.
So helpful
Peeps. I have had a half dozen or so legit businesses in my life. To pull 29% after paying ones self is above incredible. I have had a couple that hovered around 20% those are fun. The ones that generate 5-10% are stressful. Any hiccup and this month is ZERO profit.
I will admit that 29% will not be sustainable for much longer. I don't see any where else we can reduce non-billable time and as we grow those margins can only shrink. Thanks for the insight and comment.
@@FloridaTurfPros If you got business background and understand margins you will be just fine. Only add top line revenue if it translates min 20% to bottom line. By next your you will be doing $400k with 26% margin and little stress! 👍
Florida Turf Pros I’m a Novice here (starting my business in March with marketing campaign) would taking on commercial work help you maintain or even exceed 29% profit margins?
@@Cozmicsaber Did you find the answer? I'm thinking no. Some/many commercial businesses are ball breakers and can eat into profit with demands.
I would take 29% all day nice job! Solo and totally stress free here. Clients come and go. The yard changing is such a pain. Starts with a huge nice large square lot then after 3-4 years now a trampoline,pool,sand box, fire pit, kid toys,dog toys and three Great Danes haha. End of year if I am not making a certain profit off a client they are replaced period. Just last month 3 new clients. Planning ahead for next year.
Dandy Lawn and Maintenance Haha, I absolutely HATE trampolines. And yes, the worse is when the yard starts off as an easy square then turns into an obstacle course at the end of the year. We all have the same difficulties. 😂
Keep up the good work! Thank you!
Great video
Awesome bro. Good video
Hey Jonathan, yet another great video!! What do you use to keep up with your P&L? I have no experience what so ever with finance and I’d love to pick your brain on your system and how you get such great returns and profit margins. I’m looking to go full time next year but I’m scared sh:!less. Any help would be greatly appreciated. I’d even pay you for a phone call. Hahaha. Keep up the hard work and again thank you for the awesome content.
My accountant does my P&L’s. She uses quick books t generate the reports.
Thank you for the content! What year did you start your business? How many square miles is your service area?
I started 4 years ago. My service area is about 15-20 sq miles depending on which way we're going =)
Man never tbough about it like that great video
Do you use quickbooks? or just the yardbooks financial reports?
Do you have any non billable new hires you plan on making this year? Operations assistant, office person etc?
It’s not what you make. It’s what you keep
Can you please make a video explaining how you retain customers not on contracts meaning when they initially call and you set them up biweekly for a price and then after let’s say 4 visits they say hey we bought our own mower we no longer need you. How do you handle/prevent that from happening. Thanks so much in advance
If they want to leave I rather them leave. There are too many customers that want recurring service than to focus on the ones who don’t.
You know what you are doing. I thought Florida was year round though.
Great video. Is there any reading material that you would recommend for learning about business finances? I don't know much about it. Thanks.
Basic accounting videos found on UA-cam would be a great start.
I've said it before... but man I love your videos
Thanks!! I'm glad you find value in them and hope you find success in your business.
is a franchise better than going independent marketing is expensive as independant
Great video as usual.
What is your total customer base count to achieve that revenue amount?
We currently only have about 200 clients. But they are the BEST clients. Easy yards and great relationships with all the clients.
What is your per man hour rate for mowing? Thanks for your help Jonathan! 👍
I shoot for $70, but we routinely can get $90+ because we do so many houses on top of each other.
@@FloridaTurfPros Ok okay 👍
Hi Johnathan, Unrelated question, Im starting up just lawn cutting and hedge trimming - No Landscaping - In Palm Coast Florida. Do we have to collect Sales Tax for our services, Im under the impression, NO. Can you answer this.
Thomas Smith service business does not need to collect sales tax as long as you’re not reselling product or upcharging on materials/plants/supplies etc
@@FloridaTurfPros Thank you so much, Your The Man - Keep up the good work, We all appreciate what you do for us all out here in La La Land.
great profit margins, I take home more in my pocket than guys running 3 time my size, they would rather grow the company and have a name than grow there wealth I guess, I guess they can sell later but I'm building my retirement in different ways I guess
That's right... my lawn business is simply a tool for improving my overall equity. I'm more concerned with improving my overall wealth than I am showing off a big revenue business.
What is your 2 crews doing during the 4 months you're not working?
It's all in the numbers
Don't drop clients, sell them. My mate sells two rounds (40-50 per round) a year for an extra $80-100k.
Who in their right mind would pay $2,000 per account? That is a $50/week account for 40 weeks just to break even in 1 year. Unless there is an iron-clad contract with the clients, there is no guarantee you will keep the business for a solid year. Never mind the following year.
For what ever reason I believe Everyone embellishes their income in one way or another , if their self employed or not doesn't matter
Most do, but I'm dead on with this video.
Terrific information! Question... you mentioned you pay yourself a healthy salary. Do you find that when you do that, you get crushed with the matching employer tax?
Jerry’s Lawn Service I pair myself a fair wage for my position. Any profits above my salary the business does not pay self employment tax on. But if the IRS finds out I am taking a $15,000 a year salary with a business that is profiting $180,000 then I’ll have an audit on my hands in no time. That’s why I pay myself a real salary from the business. Keeping things on the up and up.
Ok thanks!
Can I get that spreadsheet?
As my second year of being a small lawn care and irrigation business owner I would like to know how do you prep up for the following season as this year is ending. Mainly on how you think is more efficient to advertise and to close deals. Thanks so much for your awesome videos of inspiration and advise ! Good bless !
You’re welcome. Thanks for hanging out and watching
need a 2.0 of this video after all your landscaping stuff.
I own a window tint company up north. I turn people away every day. I fill my pipe line with high value clients. More money less work.