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Add You - One Of The Easiet Yet Most Often Overlooked Way To Aquire Lawn Care Customers
Are you looking for a rewarding career that will be steady for your adult life? Are you looking for a career that will always be there with lots of forward advancement opportunities? Do you want to work in a high-tech field and stay on the cutting edge and work with state-of-the-art technologies and brave the future? Have you considered a career in robotics? Designing robots will be huge in the future. Manufacturing robots will also be a 100 Billion Dollar plus industry. But best of all consider fixing robots.You see after all the robots are designed, built, shipped and sold then comes the never ending job of keeping them running. Yes, a robotic repairman will reap the benefits of all this activity in industry far into the future. And that is where you come in demanding billing rates of $90 to $160 per hour.You not be working in a swe
Joel LaRusic responded by saying "buying customers is a great way to build your business but there are some important things to consider.
I would use caution proceeding with your deal. Currently your seller is holding all the cards. I am assuming that, for the first year, you are doing the work and he is getting the money? ( as opposed to you getting the cheques and then paying him ). So he is in control of the money. As well, he has indicated only verbally that he will hand over all of his $50,000 in contracts at the end of the year. Short answer then is that you are smart to demand both a signed agreement regarding the conditions of the sale and a non-competition agreement. Consider these other points too.
- General rule of thumb for b
The truth is that if you are considering a career in the nursing field, this should be a decision based on conscious consideration of a variety of factors. First, you should know that nursing is not for everyone. You must be prepared to work hard. Nursing is both physically and emotionally challenging and draining. Actually, with the exception of a few areas, nurses provide care to those in need, almost around the clock 24 hours 7 days a week. Dividing their schedules into shifts of 8 or 12 hours, nurses work long hours standing, including nights, weekends and holidays.Nursing is a profession focused on assisting the people in need of special type of treatments. The main goal of a successful nursing service is for the patient to attain and maintain an optimum level of health, while increasing his or her ability to function as independently a
When you are trying to get your lawn care business to grow, there are many ways to gain new customers. A very simple yet often over looked method is to simply buy them from another lawn care operator. These ideas came from our free e-book Be A Lawn Care Business Rebel.
Instead of trying all these different tactics to gain new customers, what if you simply bought them from another company? Eric of Lepping Lawn & Landscape asked "Is there a basic valuation when buying an existing mowing business from another company? The company is reasonably large and would like to get out of the residential lawn business."
Joel Larusic of http://www.mowboy.com and author of Start and Run A Landscaping Business said "This is a very good question . . . one that comes up a lot. It is touched on in pages 63-64 of my book but I can give you the short answer here.
As a very general rule I would say that a residential customer is worth about the value of one month's revenue. However, it may be more or less depending on a several factors:
1 ) Where you live? In my area, residential customers are not all that hard to come by so it is not likely to go much higher than 1 month's revenue. If you live in a ‘tighter' area, be prepared to spend a little more.
2 ) Is there a signed contract? How long is the contract for ( 1 year, 2 years ). This will affect the price too.
3 ) How much do the customers spend in extras each year. If they spend a lot in extra work consistently then expect to pay a little more for them.
4 ) Are the customers new? In other words, what is the existing customer loyalty like. If they are new to the seller, they are likely to drop you after you buy them. If they have been around for a while they will likely trust the decision of the seller to have you take over.
In any case do your due diligence in researching the customers. Find out the answers to the above questions and ask for job costing information on each of the customers so you can see what the actual profit of the job is. Also ask for a complete accounting record for each customer ( do they pay on time? ). Work with the seller to come up with a suitable transfer period. At the least, have them write a letter of explanation/introduction. Ideally though, they would personally introduce you and perhaps even work side-by-side with your for a few weeks to ease the transition for the customer."
Bruce from Scott Maintenance Company asked "I am currently operating a business in which I am buying from another company who is getting out of the business. The selling price is the value of 1 year on a 2 year service contract in which I perform the service and the seller gets the money for that year. In return I get the balance of his customer list. The business gross per year is approx. $50,000 CDN. I am guessing that I am paying him about $9,000 for the 1 contract which is approx 1- large and 4 small properties. This deal is verbal only. I want to write up some form of "transfer" or "non-compete" agreement. If you have any comments I would appreciate them."
Joel LaRusic responded by saying "buying customers is a great way to build your business but there are some important things to consider.
I would use caution proceeding with your deal. Currently your seller is holding all the cards. I am assuming that, for the first year, you are doing the work and he is getting the money? ( as opposed to you getting the cheques and then paying him ). So he is in control of the money. As well, he has indicated only verbally that he will hand over all of his $50,000 in contracts at the end of the year. Short answer then is that you are smart to demand both a signed agreement regarding the conditions of the sale and a non-competition agreement. Consider these other points too.
- General rule of thumb for bu
There are numerous legal considerations that should be taken into account when implementing employment screening services as part of your hiring policies. The Federal Credit Reporting Act (FCRA), state statutes, reporting guidelines and applicant disclosures all must be adhered to as part of the process. It's critical to follow these procedures as you don't want to find yourself in legal troubles.The FCRA sets forth the guidelines for background investigation companies also known as Consumer Reporting Agencies. Essentially it protects the consumers' right to privacy and fairness when preparing consumer reports on individuals.State statutes: States often set their own rules pertaining to the use and assimilation of consumer information. What may be allowed as a reportable offense in one state may not be legal in another.When
As a very general rule I would say that a residential customer is worth about the value of one month's revenue. However, it may be more or less depending on a several factors:
1 ) Where you live? In my area, residential customers are not all that hard to come by so it is not likely to go much higher than 1 month's revenue. If you live in a ‘tighter' area, be prepared to spend a little more.
2 ) Is there a signed contract? How long is the contract for ( 1 year, 2 years ). This will affect the price too.
3 ) How much do the customers spend in extras each year. If they spend a lot in extra work consistently then expect to pay a little more for them.
4 ) Are the customers new? In other words, what is the existing customer loyalty like. If they are new to the seller, they are likely to drop you after you buy them. If they have been around for a while they will likely trust the decision of the seller to have you take over.
In any case do your due diligence in researching the customers. Find out the answers to the above questions and ask for job costing information on each of the customers so you can see what the actual profit of the job is. Also ask for a complete accounting record for each customer ( do they pay on time? ). Work with the seller to come up with a suitable transfer period. At the least, have them write a letter of explanation/introduction. Ideally though, they would personally introduce you and perhaps even work side-by-side with your for a few weeks to ease the transition for the customer."
Bruce from Scott Maintenance Company asked "I am currently operating a business in which I am buying from another company who is getting out of the business. The selling price is the value of 1 year on a 2 year service contract in which I perform the service and the seller gets the money for that year. In return I get the balance of his customer list. The business gross per year is approx. $50,000 CDN. I am guessing that I am paying him about $9,000 for the 1 contract which is approx 1- large and 4 small properties. This deal is verbal only. I want to write up some form of "transfer" or "non-compete" agreement. If you have any comments I would appreciate them."
Joel LaRusic responded by saying "buying customers is a great way to build your business but there are some important things to consider.
I would use caution proceeding with your deal. Currently your seller is holding all the cards. I am assuming that, for the first year, you are doing the work and he is getting the money? ( as opposed to you getting the cheques and then paying him ). So he is in control of the money. As well, he has indicated only verbally that he will hand over all of his $50,000 in contracts at the end of the year. Short answer then is that you are smart to demand both a signed agreement regarding the conditions of the sale and a non-competition agreement. Consider these other points too.
- General rule of thumb for b
There seems to be loopholes in the advertising laws in the United States and first let me say I am not an advocate of more rules and regulations on advertising or marketing, there are way too many already. However, I have discovered an interesting cross promotion strategy that resembles unspoken price collusion that we see in marketing all the time.First let me point out how gas stations, hotels and other such business check to see what the competition is doing every day and when one raises their price the others raise theirs as well only hold it just slightly under the highest price, thus creating an upward biased in pricing. It is a mild form of price collusion, which generally cannot be enforced and indeed it appears it is so commonplace in the market place that if cannot be stopped. Indeed proving someone was engaged in such common pract
4 ) Are the customers new? In other words, what is the existing customer loyalty like. If they are new to the seller, they are likely to drop you after you buy them. If they have been around for a while they will likely trust the decision of the seller to have you take over.
In any case do your due diligence in researching the customers. Find out the answers to the above questions and ask for job costing information on each of the customers so you can see what the actual profit of the job is. Also ask for a complete accounting record for each customer ( do they pay on time? ). Work with the seller to come up with a suitable transfer period. At the least, have them write a letter of explanation/introduction. Ideally though, they would personally introduce you and perhaps even work side-by-side with your for a few weeks to ease the transition for the customer."
Bruce from Scott Maintenance Company asked "I am currently operating a business in which I am buying from another company who is getting out of the business. The selling price is the value of 1 year on a 2 year service contract in which I perform the service and the seller gets the money for that year. In return I get the balance of his customer list. The business gross per year is approx. $50,000 CDN. I am guessing that I am paying him about $9,000 for the 1 contract which is approx 1- large and 4 small properties. This deal is verbal only. I want to write up some form of "transfer" or "non-compete" agreement. If you have any comments I would appreciate them."
Joel LaRusic responded by saying "buying customers is a great way to build your business but there are some important things to consider.
I would use caution proceeding with your deal. Currently your seller is holding all the cards. I am assuming that, for the first year, you are doing the work and he is getting the money? ( as opposed to you getting the cheques and then paying him ). So he is in control of the money. As well, he has indicated only verbally that he will hand over all of his $50,000 in contracts at the end of the year. Short answer then is that you are smart to demand both a signed agreement regarding the conditions of the sale and a non-competition agreement. Consider these other points too.
- General rule of thumb for b
Doing business in the 21st century is entirely different than what it was twenty years ago. At that time computers were not a routine part of small business and it was extremely costly to get started in business. If you are thinking of setting up a brick and mortar business, then the costs have escalated in the past two decades, but it is extremely cost effective to start your own online business.The way you pay for things that you buy has also changed. Now you don't have to carry large amounts of cash because you can use your debit card and have the funds come out of your bank account automatically. Even paying your bills has become easier with online banking and you can go shopping at any time of the day or not when you shop online. Because of this more businesses than ever before are hiring webmasters to set up and manage their websites s
Bruce from Scott Maintenance Company asked "I am currently operating a business in which I am buying from another company who is getting out of the business. The selling price is the value of 1 year on a 2 year service contract in which I perform the service and the seller gets the money for that year. In return I get the balance of his customer list. The business gross per year is approx. $50,000 CDN. I am guessing that I am paying him about $9,000 for the 1 contract which is approx 1- large and 4 small properties. This deal is verbal only. I want to write up some form of "transfer" or "non-compete" agreement. If you have any comments I would appreciate them."
Joel LaRusic responded by saying "buying customers is a great way to build your business but there are some important things to consider.
I would use caution proceeding with your deal. Currently your seller is holding all the cards. I am assuming that, for the first year, you are doing the work and he is getting the money? ( as opposed to you getting the cheques and then paying him ). So he is in control of the money. As well, he has indicated only verbally that he will hand over all of his $50,000 in contracts at the end of the year. Short answer then is that you are smart to demand both a signed agreement regarding the conditions of the sale and a non-competition agreement. Consider these other points too.
- General rule of thumb for b
Cardboard shredders are machines used to cut materials, especially cardboard, to required sizes. Cardboard shredders help to convert corrugated cardboards and cartons to efficient packaging material, which is essential for the secure transit of the goods. They are available in the market in different models and sizes that can be chosen according to the requirement.Cardboard shredders are commonly used in enterprises such as industries, hotels, offices, schools, warehouses, recycling centers, and especially in shipping centers and packaging companies. Cardboard shredders can also be used for processing materials other than cardboards such as wood, plastic, computer discs, magazines, news papers, videotapes and even small circuit boards.Cardboard shredders include different models such as strip cut models and crosscut models. The size
Joel LaRusic responded by saying "buying customers is a great way to build your business but there are some important things to consider.
I would use caution proceeding with your deal. Currently your seller is holding all the cards. I am assuming that, for the first year, you are doing the work and he is getting the money? ( as opposed to you getting the cheques and then paying him ). So he is in control of the money. As well, he has indicated only verbally that he will hand over all of his $50,000 in contracts at the end of the year. Short answer then is that you are smart to demand both a signed agreement regarding the conditions of the sale and a non-competition agreement. Consider these other points too.
- General rule of thumb for buying customers is that they are worth about 1 month revenue. If they are commercial you'll pay a little more and if there is a signed multi-year agreement in place ( which you said there is ) then this will push the price up too. So it could be worth as much as 2 or 3 months revenue depending on the situation.
- What about the other $40,000 worth of contracts? Are they commercial or residential? Are they long term customers or brand new ( the longer that the selling company has served the customer the more likely that the customer will trust that he or she is being treated fairly -- and will accept you as the new contractor ). The $9,000 you mentioned seems a little steep but it really boils down to the value of the other customers on his list.
- Ask to see his books -- you have the right to examine them. Ask him to provide job costing information so that you can see if the customers are profitable. Ask for a complete account history of all his customers. Ask to see them now, not at the end of the year. If he does not want to produce them, be prepared to call off the deal.
- I am leery about going a full year doing the work for him. Working together for a couple of months makes good sense and helps make the transaction smooth for the customer . . . but a year? If possible offer to reduce this time even if you have to pay some cash. A year is a long time and if things get awkward half way through, you will likely end up with the short end of the stick.
- Having said that put everything in writing whatever you decide to do. Record customer names, addresses, revenue and costs. Make sure the selling company agrees to help you with a smooth transaction ( ie by writing letters explaining the situation and assuring customers that quality will not drop ) and document this in the signed agreement too. As well, as you mentioned, put that the selling company cannot compete against you ( at least for the customers on the list ) for 2 years or so.
There is a lot to consider and a lot to lose here so caution and prudence is key. If you have any doubt, talk to a lawyer and/or an accountant to help you with the deal."
Build the business of your dreams. Remember to Dream It, Build It, Gopher It.
For more info on starting and running your own successful lawn care business please visit our site at http://www.gophersoftware.com To learn more about the lawn care business watch our show GopherHaul and listen to our podcasts. All are free to download, visit http://www.gophergraphics.com For free lawn care marketing material such as flyers, door hangers, web templates and lawn care business contracts visit http://www.gophersoftware.com For a free 30 day trial download of our Gopher lawn care business billing and scheduling software visit http://www.gophersoftware.com
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