Starting a business...

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snowlover

New member
I am thinking of starting a property maintenance company mowing lawns, trimming shrubs, fertilizing, landscaping, snow plowing, etc. I have been laid off since March and have been doing landscaping on the side along with mowing lawns with a member of our FD on an as needed basis. He also is giving me 35 snowplowing accounts if I want them to get started. This is something I have always wanted to do but been afraid to pull the trigger, mainly do to the fear of the possibility of failing.
How have some of you gone about starting your own business'? Did you go to the bank to get a small business loan? I am trying to get started for under $25,000 with a trailer, plow truck, mower, blower, trimmer, etc. How did you drum up business/accounts? I was planning on doing flyers, signs and some ads. My wife and I are going to sit down and write up a business plan and discuss this a little more this weekend.
I just want to know what others have done and what made you pull the trigger. Even if I happen to get a job in the business world again I would still do this on the side. Nothing better than being in the outdoors and making things look good.
Thanks!
 
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kevisip

New member
Just do it. The nice thing about failing is, you get to start over.

I would do it, and dont look back. Do a biz plan. It will help you with your direction. Sometimes you dont even have to advertise much. You will get a lot of biz by word of mouth. But if you do it in this state, find a good accountant and review state tax laws good. They tax you for every service here. Right down to the weed. I paid taxes on products that I did not have to ( I over paid).

But good luck. The most important thing is to have fun, love what you do, then do it well!
 
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mikesac

New member
Hi Craig,
Like the last post said, hit it hard and go for it.
I started out my auto repair business ten years ago and it was the best thing I could have done. I am the main bread winner in my family so let me tell you I was scared, worried, and second guessing myself big time. I was already in the auto business for 15 years so I knew what I was getting into. I still did a business plan, planned things out and tried to cover all the bases before taking the plunge. Communication with the wife is very important because she might be worrying more than you but as with my wife yours may be a huge asset.
I would recommend starting small and working your way up. There has been a lot of guys that went out and got a loan, hired too many employees and buried themselves just to find out that they didnt have enough work to get things off the ground, so start small then gradually build on what you have. I tell people that the most important ingredients in a successful business are be honest, work your <font color="ff0000">&#149;</font><font color="ff0000">&#149;</font><font color="ff0000">&#149;</font> off, be smart, be sincere to your customers, and if you know what your doing everything will be fine. Dont be "all about the money" If you love what your doing and work hard the money will come and probably lots of it. Good Luck, Mike
 
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Hoosier

Well-known member
Typically the biggest cost to a new business owner is the opportunity cost lost from leaving the current job to start a new one. That's the big risk. Since you're laid off, you don't have that. If you buy smart, keep your costs down, have a realistic plan, and work hard, you can minimize your risk. Sounds like a great opportunity to get your piece of the American dream.
 
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jakester

New member
If you go to get a business loan ,tell them you're from another country, things will go much smoother for you. I have a brother that lost his trucking business, banks don't like to help out middle aged white Americans. He's been in trucking for over 30 years. I'm sure he will bounce back, but it's been a tough time for him. Failure is always scary, but I say go for it, and good luck!!
 
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dcsnomo

Moderator
You might want to contact your local SBA office and have them recommend financing options and programs. Also look to see if there is an economic development agency in your area, as they sometimes have start up money available.
The SBA also has a great website, and I found their Small Business Development Center to be helpful when I started my business.
 
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snowlover

New member
Thanks for all the advice. I contacted an old neighbor who owns his own CPA business for tax advice, etc. The guy I have been helping out got pinched a year ago for not charging tax on services and had to pay back $6800(could have been $22,000) so I know there are things like that I need to know about before I start. I have a buddy who is doing the graphic arts for free(beer) and possibly a JD family member helping with the advertising.

I am going to start small with no employees except my boys who are 14 and 11. Most things I will be purchasing can be used for personal use also(trailer for snowmobiling, mower, blower, etc.) I did some more calculations and I should be able to start for under $20,000 with some new and used equipment. My partner if LLC would be my wife. She may help with getting a loan since she is a minority(female) something she learned in her Business Law class.

I am going to check into a Small Business Development Center here in the Twin Cities also.

I think my wife is worrying more than I am about this. She may loose her job also, she will find out in a few weeks. She wants me to do this but at the same time being very cautious about it. We are going to really get down to it this weekend and set it all out on the table to see where to go from here.

All your comments and suggestions are great! Keep them coming! I really appreciate the info from all of you.

Thanks,
Graig
 
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peter

Member
start small, do good work and keep doing good work the work will keep coming. Don't try to build an empire, that takes time. Word of mouth is the best advertisment. Keep cards on you at all times to hand out. This has worked best for me.
I have a buddy that owns small landscaping/snowplowing co. and he tells me in our area, price is very important he lost few accounts to other guy because he was $5 cheaper on weekly maintence. Hope this helps you.
 
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wags

New member
I deal with some of the largest landscapers in the Chicagoland area and I touched base with my conacts and they all said start small but smart, don't buy cheap mowers ie:Craftsmen etc.. Buy good quality, and size does matter! Get wide deck mowers they all said TIME IS MONEY get in and get out.
As for fert they all suggest to avoid any issues with clients sub out to like a Chemlawn type of national chain that way if there is an issue you simply defer to them to deal with it this is until you get big enough to take on the liability yourself.

Oh and maintain your equipment more then anything because TIME IS MONEY a down machine isn't paying the bills

Good Luck
 
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lukester

New member
Ok, Heres my 2 cents.
#1 rule DON'T HIRE EMPLOYEES
#2 rule DON'T HIRE EMPLOYEES
#3 rule LIVE BY RULES #1 & #2
When you hire help you don't just inherit ALL their personal problems.
Now your responsible for the health and happiness of their wife,kids,grandma,dog,cat,goldfish.......
You will also be signing up to be their personal finance company. Spotting them loans to fix their cars (so they come to work) pay their cell phone bills etc.
Basically all their personal problems become your problem. TRUST ME ON THIS ONE. I've been in business longer then most people that are reading this have been alive.
Presently I've got 17 of them. That translates to roughly 50 un-business related disasters for me to guide them through every week of the year...If I'm lucky.

A word of caution on hiring your 11-14 year olds. Make SURE they are permitted to operate power equipment. In most states its illegal for anyone under 18 to operate cutting/lifting/hoisting machines. This includes lawnmowers car hoists
Example: a car jack... If their on the job a car jack is considered a "hoisting apparatus". If your paying them its illegal for them to change a tire unless its on their car and their off the clock! About the stupidest thing you ever heard of right? Its true.. OSHA made that clear to me and my lawyers,
When they turn 16 and are driving they are not permitted to operate a motor vehicle "for hire" after dark. And their limited on the gross vehicle weight of that truck and its "combined load" their driving. It may be ok because their your kids under farm/agriculture act. CHECK THE RULES, MAKE SURE !! Been there bought the T shirt. Very expensive T shirt!

Lastly, 80% of all business that fail in the first year were underfinanced.
If you borrow money for a "start up" spend only what you absolutely have to. And sit on the rest.
Expand slowly, work hard, and don't get discouraged. In business the highs are great but the lows can get really low. Stick with it. Tomorrow is a whole new day.
If you hit it hard and you have goals and keep them your sure to succeed. Its doesn't come easy and it doesn't come fast.
But its worth it! ............Just obey "THE RULES" Good luck
 
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mulchatna

New member
Craig,
If you decide to do it go buy a good computer, printer and fax as well as a copy of QuickBooks accounting software. QuickBooks will generate invoices and keep track of receivables and payables. It doesn't take the place of an accountant (for year-end tax purposes)but it allows even a small company look professional. Good luck.
 
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m8man

Moderator
from a family that started a successful small business, word of mouth is your best advertiser... Service current customers well and then ask them for referrals if none come your way... I'd be suprised if it didn't just happen... Treat people like you would want to be treated and you'll do fine..

m8man
 
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G

Guest
As has been stated before word of mouth will be your best advertising. To start with, anyway. Stay away from accounts receivables. Accounts receivables have killed many small businesses. Start out cash and stay cash. We have a middle aged guy in our town that does exactly the same thing you are going to do. He does very well. As he has grown his business he has had to get licenses to spray weeds and apply fertilizer. Not a big deal but necessary in this day and age. Ad tree trimming to your services. You might be surprised at how many older folks need this done but just don't have the means. Good luck.
 
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snowlover

New member
I with you all so far. You all have been saying what I have been thinking. After a whole summer of mowing, landscaping, trimming, trimming scrubs, trees, etc. I have learned quite a few things...cost matters(even $5 a week), do an excellent job and more jobs will come. Size matters to. You do not make money if you have small equipment, get in and out quick.

I am going with a Great Dane 52" stand up mower to start with and have a John Deere and Honda push mowers. I am planning on purchasing an Echo trimmer and Stihl blower. I already have a good Husquavarna chain saw for tree trimming. I plan on doing everything from mowing, shrubs, and tree trimming. All maintenance on equipment will be done by me, I actually like working on equipment.

Good info Wags on the fertilizer, as my buddy states it can be a headache.

I am meeting next week with my CPA buddy. I plan on doing my books myself(wife) with Quickbooks also.

lukester- I will check about the child labor laws...I was planning on paying them cash if that would matter. When I was growing up on the farm we never worried about that type of stuff so I didn't even think of that. Also thaks for the advice on the financing, good info.

I keep thinking, do I need the big trailer? The answer keeps coming back yes since I have no storage space and the trailer can be used year round. Do I need a big plow truck? Maybe not yet. I found a good older chevy 1/2 ton ext cab with heavy duty package and a plow in excellent shape cheap...or I could sell my Yukon and get a 3/4 ton with a plow...this is what I am having some troubles with. The mower is a no brainer as is the other equipment. I really want to keep the expense down and start small as all have suggested.

Thanks again for all the help! It is all appreciated!
Graig
 
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polarisrider1

New member
Do it! and with out partners. Sub-contract your help and make sure they sign a no compete clause. The problem with lawn care businesses around here is that they also do snow plowing. Lost some of my best riding buddies that way.
 
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ezra

Well-known member
in MN the sub contractor laws have gotten to be a real pain in the <font color="ff0000">&#149;</font><font color="ff0000">&#149;</font><font color="ff0000">&#149;</font> like 40 pages of <font color="ff0000">&#149;</font><font color="ff0000">&#149;</font><font color="ff0000">&#149;</font> pain per guy.and in a lawn biz I dont know if you could get away with calling them subs during an audit.but check in to it bennys are a bitch and worst than bennys workers comp .I give my {subs} $ to buy thear own bennys with 120 hrs in a mo.and thay buy thear own comp.the state is making harder and more speendy every year to be a legit small biz.but a few lawn guys I know do verry well. a few town home deals and some parking lots and a few guys willing to work {the hardest part}soon you will have a sore <font color="ff0000">&#149;</font><font color="ff0000">&#149;</font><font color="ff0000">&#149;</font> from sitting on that fat wallet all day and a tan left arm .just head to the dealer finance the minn you need go to work.worst case you end up with a nice mower and a life lesson to help you get the next deal right.
 
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