Ain't that the truth! Having owned a small business, I can honestly say that if you do find a way to make any profit, the government will find a way to take it.
Small Field Mowing Business?
- Thread starter crashz
- Start date
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Ain't that the truth! Having owned a small business, I can honestly say that if you do find a way to make any profit, the government will find a way to take it.
Farmwithjunk
Super Member
There is a great potential to break even in todays business climate. Then again, I can "break even" parked on the couch watching Andy Griffith re-runs. The potential for turning a worthwhile profit in a new "start up" small business venture is minimal at best at this point in time. With the risk involved in operating equipment for hire, dragging trucks and trailers around on a highway, and all that goes with a small business, I'm back to suggesting a job at that drive up window.....At least you get to look at the occasional pretty girl while working there....
.......Or else jumping into the fray on a larger scale where tight margins still allow a decent net income.
.......Or else jumping into the fray on a larger scale where tight margins still allow a decent net income.
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Mark Page
Platinum Member
If you try it be sure to charge enough. You're going to have to squeeze every last dime out of it every way you can or you're going to find yourself swapping dollars.
Don't even think about it without some kind of business insurance.
Don't even think about it without some kind of business insurance.
evan price
Silver Member
Dunno how things are in NY where you are, but another thing to be aware of is that once you go commercial, you need to have your vehicle plated commercial, and that means you can then be pulled over by your state's commercial vehicle inspectors or DOT men. If you're sticking to side roads and close to home odds are you'll be fine. Here in Ohio the State Highway Patrol has jurisdiction anywhere, and they've made landscaping guys towing trailers a hot-ticket item because they can always find something to write up. Unsecured load, brake light out, improper weight distribution, etc. and suddenly you owe the state all the profit you made this year in citations. Check the rules before you jump in.
I mow a couple properties besides mine (it was a good way to justify getting the bigger tractor and mower) HOWEVER between discovering all sorts of stuff that got abandoned in the field (Ever see what happens when you run over an aluminum baseball bat? A kids tricycle? A 40' dog tie-out chain?) and the fact that one of my people wound up hospitalized, disabled and unable to pay me, I never made a nickle and instead spent money on $4/gallon Diesel fuel and replacement parts.
I mow a couple properties besides mine (it was a good way to justify getting the bigger tractor and mower) HOWEVER between discovering all sorts of stuff that got abandoned in the field (Ever see what happens when you run over an aluminum baseball bat? A kids tricycle? A 40' dog tie-out chain?) and the fact that one of my people wound up hospitalized, disabled and unable to pay me, I never made a nickle and instead spent money on $4/gallon Diesel fuel and replacement parts.
Farmwithjunk
Super Member
There are two distinct price structures for mowing in this area. One, which I refer to as "beer money"....operators charge in the $35 to $50 an hour range regardless of size of equipment. They're content to "make a few bucks" (or so they believe) without paying taxes, without legal commercial licensing of tow vehicle, without adequate (any) liability insurance, and without factoring in eventual replacement cost of equipment. They discount the fact they invested thousands in equipment, just to be satisfied with a handful of cash at the end of the day. Their rationalization is, "it won't happen to me" (regarding law suits, encounters with DOT/police, IRS, and expensive equipment failures.
Then there's the guys who run things like a business. Anything less and you belong to group #1.
There is a pool of customers who're OK with having an uninsured amateur running the risk of loosing everything BOTH of them own just to save a few bucks.
Then there's the customers who make contractors jump through hoops to prove they're competent, legal, and qualified.
Neither side of the equation are serious competition for the other.
Question is, which side do you choose to be on?
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Due to the nature and type of customers I go after, I don't get any interference from the "beer money" crowd. They can't even stick their foot inside the door without meeting the criteria for bidding work of this nature. Then again, I don't take jobs where I'm mowing what I'd consider small acreage, which seems to be the domain of the beer money operators. However, every summer, I get phone calls from a few of these guys, pretending to be potential customers, asking about my rates. I don't have the time, nor the inclination to go into the complexities of rate structure for doing state/federal mowing contracts, dealing with court appointed legal conservators, or operating a business school for the part-time hobbiest.
No 2 jobs are alike. Pricing is determined on a case by case basis. I don't price work "hourly". I give a set final price. It's no ones business except mine how I arrive at that price. I can assure you however, it IS based around the operation of a LEGAL business.
Then there's the guys who run things like a business. Anything less and you belong to group #1.
There is a pool of customers who're OK with having an uninsured amateur running the risk of loosing everything BOTH of them own just to save a few bucks.
Then there's the customers who make contractors jump through hoops to prove they're competent, legal, and qualified.
Neither side of the equation are serious competition for the other.
Question is, which side do you choose to be on?
-----------------------------------------------------------------------------------------
Due to the nature and type of customers I go after, I don't get any interference from the "beer money" crowd. They can't even stick their foot inside the door without meeting the criteria for bidding work of this nature. Then again, I don't take jobs where I'm mowing what I'd consider small acreage, which seems to be the domain of the beer money operators. However, every summer, I get phone calls from a few of these guys, pretending to be potential customers, asking about my rates. I don't have the time, nor the inclination to go into the complexities of rate structure for doing state/federal mowing contracts, dealing with court appointed legal conservators, or operating a business school for the part-time hobbiest.
No 2 jobs are alike. Pricing is determined on a case by case basis. I don't price work "hourly". I give a set final price. It's no ones business except mine how I arrive at that price. I can assure you however, it IS based around the operation of a LEGAL business.
FWJ
I agree with your stated comments but I believe you are running a large commercial mowing business, very large and professionally run. Which is different than a small field mowing business that could undercut your price due to lower operating costs. Again its up to the customer to decide which operator meets their needs a large commercial operation as yourself or a small independant operator who may or may not have a serious profit motive.
Not everyone needs beer money
some are just starting their business.
I am planning on a small field mowing service in select situations more to provide tax write off than a profit maker. have a good day glad to see you are back posting enjoy your comments....
I agree with your stated comments but I believe you are running a large commercial mowing business, very large and professionally run. Which is different than a small field mowing business that could undercut your price due to lower operating costs. Again its up to the customer to decide which operator meets their needs a large commercial operation as yourself or a small independant operator who may or may not have a serious profit motive.
Not everyone needs beer money
some are just starting their business.I am planning on a small field mowing service in select situations more to provide tax write off than a profit maker. have a good day glad to see you are back posting enjoy your comments....
wcampbell47
Platinum Member
- Joined
- Jul 21, 2009
- Messages
- 697
- Location
- Texas Coast
- Tractor
- Kubota L3901 ASV Compact Tracked Loader
Five years ago I purchased a tractor and a few three point implements for my own use. I bought implements that were different than most other owners. Most of the tractor owners have a box blade and shredder. Not many tillers and only one other land plane. My tractor was also much smaller which has proven to be a good thing.
A few neighbors asked if I could do this or that. I charge $50 an hour and that does not seem to be a deal breaker. Some want a contract price. The purchase of the equipment and the resulting write off in a small business is probably more helpful than the income produced, although I do bring in enough to make the monthly payment on the new tractor.
I'm semi-retired and the wife has a good job. I see after the homestead and do small jobs on the side. I just enjoy the seat time and doing the best job I can.
I'm friends with the proprietor of the largest lawn service in the area. I don't even try to compete with him .. but have tried to compliment his work. I have an 800 lb lawn aerator and three point fertilize spreader which he doesn't have.
If you can find a niche where you are different than other tractor owners I think you will have a better chance of bringing in a few bucks on the weekend.
A few neighbors asked if I could do this or that. I charge $50 an hour and that does not seem to be a deal breaker. Some want a contract price. The purchase of the equipment and the resulting write off in a small business is probably more helpful than the income produced, although I do bring in enough to make the monthly payment on the new tractor.
I'm semi-retired and the wife has a good job. I see after the homestead and do small jobs on the side. I just enjoy the seat time and doing the best job I can.
I'm friends with the proprietor of the largest lawn service in the area. I don't even try to compete with him .. but have tried to compliment his work. I have an 800 lb lawn aerator and three point fertilize spreader which he doesn't have.
If you can find a niche where you are different than other tractor owners I think you will have a better chance of bringing in a few bucks on the weekend.
Farmwithjunk
Super Member
FWJ
I agree with your stated comments but I believe you are running a large commercial mowing business, very large and professionally run. Which is different than a small field mowing business that could undercut your price due to lower operating costs. Again its up to the customer to decide which operator meets their needs a large commercial operation as yourself or a small independant operator who may or may not have a serious profit motive.
Not everyone needs beer money
I am planning on a small field mowing service in select situations more to provide tax write off than a profit maker. have a good day glad to see you are back posting enjoy your comments....
I'd bet you a weeks pay I can mow for LESS cost per acre than a typical smaller independent operator, so long as they're LEGAL. It's called "economy of scale". I can operate on a tighter margin per what ever particular unit of measure (ie acres, hours, ect) with the fact that I have the capability to mow a BUNCH of those acres in a day. I do a number of rather large jobs where we're actually mowing (and making money) for under $15 an acre. Try that with a one man operation using a 6' mower......
Simple fact is though, I'm NOT going to try to compete with those who operate without proper insurance, ect....Those aren't a "business" in my eyes. And if I want to intentionally "lose money" for a tax write off, there's a long list of charities that will accept my donations without my involvement in a venture where I run the risk of a catastrophic event. . Again, I don't consider any business designed to lose money as a valid business....just a tax dodge in plain and simple words....with a great deal of risk for what possible reward there is to be had.
My "beef" (if there is one) is with guys who choose to operate in todays "sue first and ask questions later" environment without insurance, and those who don't do taxes. The risk is FAR greater than the reward....
Think of it in terms of the old saying, "It's all fun and games until someone gets an eye put out". Same thing.....Fun and games until something goes wrong.....and that does happen. At that point, the judge and jury doesn't care why you don't choose to have insurance, or commercial vehicle license, or a tax #, or..........
RDrancher
Veteran Member
I would check out attachments that your local rental yard and tractor dealer have for rent that your tractor will run and offer those services to your customers as well. You could offer services to banks on keeping up their repo's and get friendly with your county ag extension office and let them know that you're available. I get a few referrals from them most years.
I provide brush hog mowing services as a small part of my business using a 6 foot shredder. I mow small lots, under 20 acre fields and hard to access properties with hillsides, etc. Most of the beer money guys around here use older 2WD tractors with no ROPS and only work on the flats.
Working for landowners can be profitable at times and absolutely terrible as well. During last years drought even my regular customers only needed mowing once, and I signed up exactly one new customer. No way could I survive and pay my insurance if I were only relying on that for income.
As has been said before, things you can't see can be time consuming, tear up your equipment or be downright dangerous. One bank repo I worked on was like an overgrown wrecking yard. I actually ran over an acetylene tank lengthwise and when I checked it, it was full! That could have been a pretty bad deal.
I provide brush hog mowing services as a small part of my business using a 6 foot shredder. I mow small lots, under 20 acre fields and hard to access properties with hillsides, etc. Most of the beer money guys around here use older 2WD tractors with no ROPS and only work on the flats.
Working for landowners can be profitable at times and absolutely terrible as well. During last years drought even my regular customers only needed mowing once, and I signed up exactly one new customer. No way could I survive and pay my insurance if I were only relying on that for income.
As has been said before, things you can't see can be time consuming, tear up your equipment or be downright dangerous. One bank repo I worked on was like an overgrown wrecking yard. I actually ran over an acetylene tank lengthwise and when I checked it, it was full! That could have been a pretty bad deal.