Let's do the math

[LoneCowboy]

so if you made another $13.62 an hr it would be 100% bankable cash (give or take) 27.25 an hr....

put another way.... you need to make $650 per calandar week for the 6 months to cover costs....


but, your your own boss, and only work 6 months out of the year... course you only make 13K a year which is kinda hard to "live off of"

but i think we are missing an inportant detail... the "im on vacation for 6 months" part.... you happen to live in CO were the snow plow season is MUCH MUCH longer than it is in FL.... you already pay for vehical insurance for the ENTIRE year, you already carry the buisness libility for the ENTIRE year.... pushing snow around is essentally 100% profit... (ok costs for fuel and maintance per hr it runs, but per hr it runs you should be covering those costs)

almost
Don't forget your variable costs. Fuel, time, etc

Snow plowing liability insurance is ridiculously expensive. It's in addition to your regular liability. I think i pay like $1400 a year for one person, one truck in addition to the pasture maintenance liability.. (slip and falls I'm sure is what makes it so expensive). Plus the $5000 plow and it's hard on trucks. (and you have to get up EARLY )

But yeah, basically extra cash flow in the winter. It doesn't really snow all that much here on the front range usually.

 

[sandman2234]

Ducati996
She isn't a witch and I wasn't in her will to start with. She is my mother in law and although I will never be good enough for her daughter, she and I have called a truce since my Father in Law passed away.
If she wanted me to mow her lawn, all she would have to do is ask her daughter and she would tell me to go do it. I do still hit the high spots in between paid mowings if it gets too bad.
I kind of appreciate not having to do it. I didn't get enough time off as it was and hated spending half a day making her yard look like mine ought to.
David from jax

 

[LoneCowboy]

Opps forgot one
Sitting here paying bills
Communication
Your phone bill.
You need a phone (in this day and age probably a cell phone) to have a business.

Add another 50 to 100 bucks a month in overhead

 

[sandman2234]

Plus your going to have to have an office, or at least a corner of the dining room table with a ledger book/computer to keep details in.
David from jax

 

[Kendall69]

With the numbers you posted, minus some additions you came up with $13.63, for lets say 872 hours of work or aprox. $13,625.00.

At $50.00 per Hr, for only half those hours or 400 Hrs, you will make 20K,
if your aggresive and work all 872 hours at $50.00 Hr, that's 43k. At $75.00 you shoot up to 65K

Now that you have a basis for the rock bottom price just to make you costs, you can now get creative.

Now you know the number that you can negotiate to kill off the low ballers, or the competition, great number to know. By doing some jobs at cost, or below cost is not "costing" you money, if you use these jobs to drive the competition away, or keep them at bay, then the "loss" is money well spent in the long run.

I've done jobs where I walked away with $5.00 for a days work, but I chased away the competition and got the customer for life - In the long run I made thousands of dollars because I chose to "lose" money.

Now lets get creative. Knowing the $13.63 rate you can now farm yourself out to construction sites, overflow to you competition, hourly rate etc. for a flat rate of lets say $50.00, per hr. ( use whatever number you wish here ) - point being, as long as the tractor is running your making money so the objective is keep the motor runnin.

Place some selective flyers out in Grocery stores Have tractor will travel $50.00 per Hr. Tilling, Mowing, clean up, road grading, driveway smoothing digging pods, making fire breaks etc .etc. ( perhaps a minimum so you don't get killed ) Flat rates help people out because they can figure out the job's price before they call you, saying "I have a job that should be 4 hours, and...."

Remember a lot of these people you are now networking with, are all potential snow plowing customers, people who need barns cleaned, etc.

Farming yourself out to the State of Colorado during snow plowing for back roads, by the hour.

Now there's wood chopping which will bring in some extra cash.

 

[AlanB]

Then there is the "other" format, that more people use, but never seem to want to type on this type of board, and that is what I would call the "going Rate" format.

Say in Lawncare, there is a "going rate" which is actually more of a range, that you need to be within, to get jobs, and yet stay in business.

Often, for folks just starting out, it is easy to get flat out overwhelmed by the numbers, when in reality, if you just go with the "going Rate" of doing work in your area, it will average out ok.

Ie, this neighborhood, lawns are between $30 and $40 each, someone will come in and bid $20 on occasion, but they will be gone before long as something will break etc. and they will not have the $ to keep going, someone will also come in and bid $50 and they will probably not last long either as someone else will come along offering to do it for $40.

Anyway, there is another, very common in actual fact, but never discussed in the books or business plans that operates that way.

Many, many many folks start out charging going rate, then refine their plans as they go.

 

[Kyle_in_Tex]

Remember, his costs are based on a $7000 truck. Everything else is based on higher (more closer to new) costs but the replacement of a truck would be a bunch more than $7K. If a person can keep a lower priced truck rolling down the road, this is a great way to increase profit.

What I've surmised from all of this is, if your mechanically inclined to fix your own stuff, go buy good USED equipment to keep your fixed cost low and give yourself the best chance to make profit from the start. If stuff breaks on you, learn from it. Buy different better stuff. Carry spares and tools. I'm not talking about worn out stuff but if you know about a particular brand whether it be Scag or Snapper, and you know how to keep it running, that's what I'd be looking for USED of course...

 

[LoneCowboy]

Yeah, i used that as a starter point (7k truck)
but remember, breakdowns cost you big time.
Your fixed costs continue each hour you are down, plus you cost yourself work and customers.
so used stuff is fine, but it's got to be good running good stuff.
(new stuff breaks down too).
sometimes you need backups for stuff, as you can't be down when the work is there.

 

[LarryRB]

lonecowboy
you forgot one little thing,, when you depreciate, you first have to subtract scrap value. For instance, on all my tractor trailers, say the tractor cost 80,000, and it is new, you subtract 10,000 for scrap value, then divide the rest by 4-5 years and get depreciation. The IRS has always demanded a scrap value first, In other words, brand new tractor that for some unforseen accident that totals the new truck,,
What I did with my L48 TLB is to take the nat'l municipal average which is 6000 hours. THis is what most state and local gvt's feel a backhoe has as a useful life,, Divide cost of machine, yearly inland marine, 420.00 in my instance, 4.00 per hour in fuel, same for maintenace costs, 15% return on investment and this total, divided by 6000 hours is my variable and fixed costs to own and operate the L48. I've done it this way since 1974 and beleive it or not, is seems to be very accurate.,

 

[ihookem]

When I do the math with my small remodeling buisness it is the high cost that is killing me. I have an 05 gmc diesel, 7k in tools and a 14k Kubota 7510. I try to keep it simple compared to you guys cause I'm one guy. I figure 2.00 an hour for diesel, 1.00 for tools (which is half what it should be) When I us my Kubota I need 200.00 a day when I realy use it, 100.00 when I use it real light. I figure about 8.00 per hr. for wear on the tractor and 3.00 per hr for diesel.I try to get 20.00-30.00 every time I need to get supplies like lumber. The clock starts whatever the time says on the receipt as proof if there is a question on time. If it wasn't for the .47 cents a mile for my truck, and deductions for tools as expenses I would have a dead company. Even at 40 per hr. labor only nets me about 37per hr after expenses. I also do a few things though, to help me a little bit. When my church or I use my tools or tractor for church I can deduct off my taxes what the daily rental would be. Last year I cut grass for my church property and took 250.00 per day for 20 days. I t came to 5000.00 deduction. Only problem is I had to cut an awfull lot of grass to get it. With depreciation from my buisness I'm sure it will pay for the tractor in time.