Doug Rucker
Roundtable Host 2009
Must be at your time share in xxxx
The $200k Barrier
- Thread starter AC Lockyer
- Start date
Must be at your time share in xxxx
Newlook
Member
Yep...in Cancun! Planning on going in July after our trip to Seattle!
Apple Roof Cleaning
Roof Cleaning Instructor
There is absolutely nothing wrong with being a smaller roof cleaning operation. In fact, here in the capital of roof cleaning (Florida), most roof cleaning companies are smaller operations. There are very very few multiple truck roof cleaning companies left down here. Most, if not all of these multi truck Florida roof cleaning outfits were brought to their knees by more efficient owner/operators long ago. Of course, we all want to maximize our income from every customer, but being bigger is not automatically being better. In fact, one truck grossing 200K is not such a bad thing, because roof cleaning is so profitable. I fail to see what is so "wrong" with someone making near 100K a year, as they would with a single truck grossing 200K ?
Doug Rucker
Roundtable Host 2009
Absolutely nothing wrong with it...as several have pointed out.
apwasher
New member
I was answering Ron's question above. The CPA is not going to save you as much money as the tax attorney. The CPA has a license to file paperwork with a short education and some continuing ed about the form changes. The Tax attorney has an 8 year education 4 of which is law 2 of which is tax law and 1year of field work before they pass the bar and then continue their education to make their clients money.
Our company does more than 200k and we grow yearly. Our net is over 100k but as Ron said what your worth is the big thing you need for retirement and to judge value (as a bank or court would). Equity is the name of the game. AC I would have asked who is buying houses and shops? Thats real value. I kinda think that's why it's called 'real' estate. Better yet who has over 200k liquid cash and and more than 3 properties? Thats a good measure of value.
As some here said owner operator business may be hard to sell for a good price. But if that owner operator business has equity it will at least be worth the equity. Example: We will use the hypothetical character 'Sam': Sam has a small biz that does 180k a year with 2 other employees, and no repeat clientele. But Sam is a smart value shopper and owns a shop with some rental units he also owns after paying off a 15 or 20 year mortgage. If his 180K a year business owns the shop with rentals and it is valued at 500k than his business is worth at least 500k if not 600-700k. Thats more than I'm worth and Sam is doing a lot less business than me. Also with his tenants rent Sam is probably only doing about 90k in cleaning of his 180k 'cleaning business'.
Our company does more than 200k and we grow yearly. Our net is over 100k but as Ron said what your worth is the big thing you need for retirement and to judge value (as a bank or court would). Equity is the name of the game. AC I would have asked who is buying houses and shops? Thats real value. I kinda think that's why it's called 'real' estate. Better yet who has over 200k liquid cash and and more than 3 properties? Thats a good measure of value.
As some here said owner operator business may be hard to sell for a good price. But if that owner operator business has equity it will at least be worth the equity. Example: We will use the hypothetical character 'Sam': Sam has a small biz that does 180k a year with 2 other employees, and no repeat clientele. But Sam is a smart value shopper and owns a shop with some rental units he also owns after paying off a 15 or 20 year mortgage. If his 180K a year business owns the shop with rentals and it is valued at 500k than his business is worth at least 500k if not 600-700k. Thats more than I'm worth and Sam is doing a lot less business than me. Also with his tenants rent Sam is probably only doing about 90k in cleaning of his 180k 'cleaning business'.
Tony Shelton
BS Detector, Esquire
I would like to add the value of owning your other business assets also.
There is no better feeling than knowing that your equipment is yours.
We went through a terrible time here in Las Vegas. Customers were going out of business left and right. We would come to accounts to find eviction notices on their doors. You can rest assured that if they can't pay their lease, the next thing you are going to get in the mail is the bankruptcy notices.
We were lucky during that time in that we had a lot of personal assets that we could sell to keep our business above water. We also had enough equity in our heavily financed vehicles that we weren't hurt too bad when we had to unload them and were only a little bit upside down.
Keep in mind we just started officially in 2004, so we were still a fairly new business concept when the economy went south.
We had come to rely on credit as the accepted way of doing business. When customers started closing up shop we had around $4000 per month just in vehicle payments and vehicle insurance alone. The payment on just one piece of equipment, a lift, was over $1500 per month.
After we weathered that storm we went back to the drawing board. I read the book "Business by the book", a Christian based book on business operations. We started to implement a cash only philosophy.
We were amazed at how much money we were throwing away each month in insurance overages and interest payments.
You would be really surprised how much you can save.
I've started a number of businesses from scratch. I didn't fall into the credit trap till some genius sold me on all the tax "benefits".
Those tax benefits don't mean much till you are spending over $175k a year on equipment.
There is no better feeling than knowing that your equipment is yours.
We went through a terrible time here in Las Vegas. Customers were going out of business left and right. We would come to accounts to find eviction notices on their doors. You can rest assured that if they can't pay their lease, the next thing you are going to get in the mail is the bankruptcy notices.
We were lucky during that time in that we had a lot of personal assets that we could sell to keep our business above water. We also had enough equity in our heavily financed vehicles that we weren't hurt too bad when we had to unload them and were only a little bit upside down.
Keep in mind we just started officially in 2004, so we were still a fairly new business concept when the economy went south.
We had come to rely on credit as the accepted way of doing business. When customers started closing up shop we had around $4000 per month just in vehicle payments and vehicle insurance alone. The payment on just one piece of equipment, a lift, was over $1500 per month.
After we weathered that storm we went back to the drawing board. I read the book "Business by the book", a Christian based book on business operations. We started to implement a cash only philosophy.
We were amazed at how much money we were throwing away each month in insurance overages and interest payments.
You would be really surprised how much you can save.
I've started a number of businesses from scratch. I didn't fall into the credit trap till some genius sold me on all the tax "benefits".
Those tax benefits don't mean much till you are spending over $175k a year on equipment.
Apple Roof Cleaning
Roof Cleaning Instructor
Ralph Q
New member
I fell for that guys(Don Lapre) scam years ago. He went to jail and committed suicide. Lol, Yes I laughed out loud.
Rapid HotClean
New member
Imagine, he even has his own fountain!
AZ PowerWash Pros
New member
Too funny!
Tony Shelton
BS Detector, Esquire
Somebody call the Pwna quick. Its one of those rare occasions when more than one or two rigs are parked at my place. Give me another hour and there might be another one here for a few minutes. Hurry and look over my fence. Lol
Oops forgot to hook the one in back up to the crown Vic.
Who am I kidding. I don't have a business just like Ron. Lol
Sent from my DROID RAZR HD using Tapatalk
Oops forgot to hook the one in back up to the crown Vic.
Who am I kidding. I don't have a business just like Ron. Lol
Sent from my DROID RAZR HD using Tapatalk
Apple Roof Cleaning
Roof Cleaning Instructor
People get scammed all the time, in everyday life, so of course we have scammers in our Industry. Some take it lying down, and never admit they got taken, and some go absolutely ballistic, when they get scammed, like this guy
tigerwash
New member
LMAO!!
AC Lockyer
New member
Still let's stay on topic....
What are we all doing to grow our sales, systemize our company, attract new or better employees, keep more net profit from our jobs, earn more free time for our family and hobbies? Would improvements in these areas result in company growth? How much yearly production can an owner operator really expect? How much more if they get off the wand and into the sales truck? How much more if they add a sales and management team? Is there room for me to grow? How much do I want to grow? Will growth hurt me or help me? What are my life's goals?
AC
What are we all doing to grow our sales, systemize our company, attract new or better employees, keep more net profit from our jobs, earn more free time for our family and hobbies? Would improvements in these areas result in company growth? How much yearly production can an owner operator really expect? How much more if they get off the wand and into the sales truck? How much more if they add a sales and management team? Is there room for me to grow? How much do I want to grow? Will growth hurt me or help me? What are my life's goals?
AC
AC Lockyer
New member
Thanks Bill.
Steven Rowlett
Member
The company I retired from 14 years ago defined loosing money as "falling short of their sales projection". Example: projected 10 million in sales and only had 7 million they would say they lost 3 million. I always told them you could not loose what you never had. Everyone had their own idea of what success is. Like "Beauty is in the eye of the beholder", same thing here.
Luis Orts
New member
AC, I think the first step to having more time for the family is to get from behind the wand and focus on getting your employee's to following a set regime everyday... almost religously. So if you wash a roof, your employee's do it in a certain process everytime. Creating "If..... Then..." scenarios and teaching your employee's how to react, after time, will become automatic. As you do that, your objective is to create marketing through videos, pictures, and demos as they do that. Think about what your customers needs are and not your own needs, and you will prosper.
Then as you progressively grow, getting people to build the business for you through sales & marketing processes and creating a brand that people will follow and recognize very easily. Then all you do is play your business like a chess board. and you're the chess master. Just remember to keep cash in the bank for rainy days and grow nice and slow.
Just my two cents.
It's all about making things easy for yourself.
Then as you progressively grow, getting people to build the business for you through sales & marketing processes and creating a brand that people will follow and recognize very easily. Then all you do is play your business like a chess board. and you're the chess master. Just remember to keep cash in the bank for rainy days and grow nice and slow.
Just my two cents.
It's all about making things easy for yourself.