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Starting (and Fastlaning) a lawn care service business

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This is a F*cking great post - it's a perfect example of how knowing your company's numbers can give you so many opportunities. Good job on getting your guys to track their average visit so you can even calculate the 2 minutes saved per job.
their time is tracked but it’s not exactly the way you think

I’m going to explain something we call time value. I will break it down as how I reasoned and calculated each step because it’s hard for an outsider to understand the exact process. To me it’s obvious but nobody seems to feel the same way lol.

I took a sample list of customers of different size yards. This was a couple years ago I did this.

I measured their square footage and recorded that number.

Then I measured their average visit time as recorded by tracking our employees.

So now I have a list of customers with their average visit time and square footage.

I plot that on a graph using the data points.

Then, you see that it’s a curvy line. There’s a 10-15 minute setup time to drive there to each job.

Smaller square footage yards will still have beds, the lawns will curve, so it’s a longer amount of time per square foot.

Then it levels off. If you want to mow a large place it will have a larger portion of the lawn that can be mowed without turns, less amount of beds, etc.

So that is going to follow a logarithmic function. You use linear regression to find the function blah blah nerd math = you end up with a curve that represents how long every visit takes based on the square footage on average.

Okay, so now you have an important number, but we need it to mean something for us. So we work backwards from another set of numbers. $$$

If I have one guy working, I pay him $23 an hour. Plus payroll taxes, add in gas costs, add in the equipment cost on average, add in the space we pay to rent to park that truck, add in the insurance for that truck, etc. and we get about 6 thousand dollars every month that truck is working. I cut expenses and lay off people when I don’t like them (most of the employees) so our expenses are only 10-11 months of the year. So we spend about 6000 a month on that one truck to run and pay for the labor.

I want one truck to bring in like 12,000 of revenue at least per month.

If you’re a customer on our schedule, you get services every week or every other week. 90% are on every other week.

That means we have a 2-week schedule until it repeats.

So if your place took an entire day to visit, every two weeks, you are 1/10th of our entire schedule for that truck. (M-F times 2 is 10 work days)

This is important.

Imagine our 10 days as a big pie.

I NEED that ‘pie’ to be ‘worth’ 12,000 a month worth of monthly contracts.

If your giant yard that took up 1/10th of our whole schedule (an entire day that we’d be at every 2 weeks), I need you to pay $1,200 a month. Because if we had 10 of you I would make $12,000 a month worth of customers and the schedule would be full. Does that make sense?

So now we know what our time is worth.

And it’s in terms of what you’d pay per month. I don’t know what the money from each visit is, everything is monthly since it’s easier math for me and more relevant.

So now we have to link together what our time is worth with the visit time formula.

Since I want to make 12k a month in revenue from each crew so 1.2k a month from a full day of work on a biweekly customer, I use a nice round number to show the ratio between the average time a visit should take and price.

I use 4. (It’s now 4.25 but let’s use 4).

If your place takes us roughly 30 minutes because it’s a small-ish square foot place. I’m going to have you pay $120 a month. Simple.

That’s because one employee could probably do 10 of those a day.

That would get us to $1200 a month if he did 10 of those places in a day and only worked one day. He would do this for two weeks and when we got back to the same customer we would have done 100 customers and we would have our 12k revenue. Make sense?

So he can do ten of those a day.

The place takes 30 minutes but realistically he cannot do 16. 8 hours of 30 minute visits. There’s inefficiencies. Tools break. They go to the dump. They forget a rake. Etc. So we say 10 of those 30 minute places is a good safe bet.

That’s 300 minutes then.

This is where we get that “4” from for finding the relationship between average visit time and monthly payment.

If you have a 30 minute place, I think we can have one employee do 10 of them in a day. That gives them a full day of “300” for their “time value”.

A customer should be paying 4x the time value as their monthly payment.

If your place takes 45 minutes, it should be times 4 to get your monthly price if you’re getting biweekly visits. Thats 180 a month. The guys could do 6.67 of your places a day and if those customers are paying 180 a month we will hit our 12k revenue goal.

Employees have a set time value associated with their wage. If they want $23 an hour they get 300 time value worth of properties on their schedule each day.

So price, square footage, visit time, and employee wages (and thus expenses) are tied together with a formula.

By definition, if a crews jobs have customers who’s payments are below our 12k a month goal, their time value would not add up to 300 a day, which means by definition their schedule is not full.

Do you see how beautiful it is?

By definition the schedule isn’t full until it’s perfectly profitable at our desired numbers. BY DEFINITION.

This must be a lot of work right?

No.

It means we have a spreadsheet showing square footage ranges and simple price tiers.

Measure the property, it fits in a price tier, that’s their monthly payment. Simple.

When we onboard them, it shows their time value because I have a field that divides their price by 4 if they signed up for biweekly services.

It spits out the time value. My office employee puts that number in their name on our mapping software and our dispatching software.

So customers look like this to the employees schedule

IMG_3218.webp

This makes it easy to balance people’s schedules too!

If we see someone has an 86 time value, that’s huge. If someone has a 25 minute time value it’s small. So two employees will have their time values still add up to 300 but one could have 4 jobs and the other could have 10, and it’s still fair!

This means we can look at a list of 500 customers and not know who they are, where they live, what their place looks like, and we can quickly know how long their place should take so it makes scheduling a breeze.

I can add up the time value for all of our customers and tell you we would only need 6.78 employees to complete the work. I could tell you the average time value is 37.5. I could tell you we have a total time value of 1050 on the second week on fridays and only 789 on the second week on Thursdays, so even though there’s more Thursday customers we still need to move some Friday customers to Thursday to balance the schedule. I could tell you how much expected revenue we should get from the amount of customers we have. I can track the average visit times by employee and see the total time spent by employee compared to the visit times and see if they’re average too long or getting them done in less than the time value and see a ratio of efficiency.

Why is this a perfect way to run it?

The schedule is balanced.

By definition the schedule isn’t full until we’re fully profitable.

The employees don’t need to be micromanaged because they get to head home when the jobs are done and they have a set workload each day.

They are incentivized to work quickly but not poorly so they don’t have to return.

Payroll is simple and I just pay them their 23 an hour times 40 a week so it’s like a simple salary.

It doesn’t create much of an opportunity for the employees to complain since they get a balanced workload.

We can keep track of a whole bunch of data like how long a persons visit should take just from a glance at a map.

All it means for employees is “you’ll have a decent amount of workload each day if you want 23 an hour. Get it done and head home”. Simple.

All it means for the office is “put this number in this spot on their name. And when you do the schedule make their day add up to 300”. Simple.

All it means for me is “Hey look a F*ck ton of money :)

Simple.
 
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vjios voni ot vsedlif cav ov’t puv iyedvmz vji xez zua vjopl

O’n huoph vu iyqmeop tunivjoph xi demm voni wemai. O xomm csiel ov fuxp et jux O sietupif epf demdamevif iedj tviq cideati ov’t jesf gus ep uavtofis vu apfistvepf vji iyedv qsuditt. Vu ni ov’t ucwouat cav pucufz tiint vu giim vji teni xez mum.

O vuul e tenqmi motv ug datvunist ug foggisipv tobi zesft. Vjot xet e duaqmi ziest ehu O fof vjot.

O nietasif vjios traesi guuvehi epf sidusfif vjev pancis.

Vjip O nietasif vjios ewisehi wotov voni et sidusfif cz vsedloph uas inqmuziit.

Tu pux O jewi e motv ug datvunist xovj vjios ewisehi wotov voni epf traesi guuvehi.

O qmuv vjev up e hseqj atoph vji feve quopvt.

Vjip, zua tii vjev ov’t e daswz mopi. Vjisi’t e 10-15 nopavi tivaq voni vu fsowi vjisi vu iedj kuc.

Tnemmis traesi guuvehi zesft xomm tvomm jewi cift, vji mexpt xomm daswi, tu ov’t e muphis enuapv ug voni qis traesi guuv.

Vjip ov miwimt ugg. Og zua xepv vu nux e meshi qmedi ov xomm jewi e meshis qusvoup ug vji mexp vjev dep ci nuxif xovjuav vaspt, mitt enuapv ug cift, ivd.

Tu vjev ot huoph vu gummux e muhesovjnod gapdvoup. Zua ati mopies sihsittoup vu gopf vji gapdvoup cmej cmej pisf nevj = zua ipf aq xovj e daswi vjev siqsitipvt jux muph iwisz wotov velit cetif up vji traesi guuvehi up ewisehi.

Ulez, tu pux zua jewi ep onqusvepv pancis, cav xi piif ov vu niep tunivjoph gus at. Tu xi xusl cedlxesft gsun epuvjis tiv ug pancist. $$$

Og O jewi upi haz xusloph, O qez jon $23 ep juas. Qmat qezsumm veyit, eff op het dutvt, eff op vji iraoqnipv dutv up ewisehi, eff op vji tqedi xi qez vu sipv vu qesl vjev vsadl, eff op vji optasepdi gus vjev vsadl, ivd. epf xi hiv ecuav 6 vjuatepf fummest iwisz nupvj vjev vsadl ot xusloph. O dav iyqiptit epf mez ugg qiuqmi xjip O fup’v moli vjin (nutv ug vji inqmuziit) tu uas iyqiptit esi upmz 10-11 nupvjt ug vji zies. Tu xi tqipf ecuav 6000 e nupvj up vjev upi vsadl vu sap epf qez gus vji mecus.

O xepv upi vsadl vu csoph op moli 12,000 ug siwipai ev mietv qis nupvj.

Og zua’si e datvunis up uas tdjifami, zua hiv tiswodit iwisz xiil us iwisz uvjis xiil. 90% esi up iwisz uvjis xiil.

Vjev niept xi jewi e 2-xiil tdjifami apvom ov siqievt.

Tu og zuas qmedi vuul ep ipvosi fez vu wotov, iwisz vxu xiilt, zua esi 1/10vj ug uas ipvosi tdjifami gus vjev vsadl. (N-G vonit 2 ot 10 xusl fezt)

Vjot ot onqusvepv.

Onehopi uas 10 fezt et e coh qoi.

O PIIF vjev ‘qoi’ vu ci ‘xusvj’ 12,000 e nupvj xusvj ug nupvjmz dupvsedvt.

Og zuas hoepv zesf vjev vuul aq 1/10vj ug uas xjumi tdjifami (ep ipvosi fez vjev xi’f ci ev iwisz 2 xiilt), O piif zua vu qez $1,200 e nupvj. Cideati og xi jef 10 ug zua O xuamf neli $12,000 e nupvj xusvj ug datvunist epf vji tdjifami xuamf ci gamm. Fuit vjev neli tipti?

Tu pux xi lpux xjev uas voni ot xusvj.

Epf ov’t op visnt ug xjev zua’f qez qis nupvj. O fup’v lpux xjev vji nupiz gsun iedj wotov ot, iwiszvjoph ot nupvjmz topdi ov’t ietois nevj gus ni epf nusi simiwepv.

Tu pux xi jewi vu mopl vuhivjis xjev uas voni ot xusvj xovj vji wotov voni gusname.

Topdi O xepv vu neli 12l e nupvj op siwipai gsun iedj dsix tu 1.2l e nupvj gsun e gamm fez ug xusl up e coxiilmz datvunis, O ati e podi suapf pancis vu tjux vji sevou civxiip vji ewisehi voni e wotov tjuamf veli epf qsodi.

O ati 4. (Ov’t pux 4.25 cav miv’t ati 4).

Og zuas qmedi velit at suahjmz 30 nopavit cideati ov’t e tnemm-otj traesi guuv qmedi. O’n huoph vu jewi zua qez $120 e nupvj. Tonqmi.

Vjev’t cideati upi inqmuzii duamf qsucecmz fu 10 ug vjuti e fez.

Vjev xuamf hiv at vu $1200 e nupvj og ji fof 10 ug vjuti qmedit op e fez epf upmz xuslif upi fez. Ji xuamf fu vjot gus vxu xiilt epf xjip xi huv cedl vu vji teni datvunis xi xuamf jewi fupi 100 datvunist epf xi xuamf jewi uas 12l siwipai. Neli tipti?

Tu ji dep fu vip ug vjuti e fez.

Vji qmedi velit 30 nopavit cav siemotvodemmz ji deppuv fu 16. 8 juast ug 30 nopavi wotovt. Vjisi’t opiggodoipdoit. Vuumt csiel. Vjiz hu vu vji fanq. Vjiz gushiv e seli. Ivd. Tu xi tez 10 ug vjuti 30 nopavi qmedit ot e huuf tegi civ.

Vjev’t 300 nopavit vjip.

Vjot ot xjisi xi hiv vjev “4” gsun gus gopfoph vji simevouptjoq civxiip ewisehi wotov voni epf nupvjmz qeznipv.

Og zua jewi e 30 nopavi qmedi, O vjopl xi dep jewi upi inqmuzii fu 10 ug vjin op e fez. Vjev howit vjin e gamm fez ug “300” gus vjios “voni wemai”.

E datvunis tjuamf ci qezoph 4y vji voni wemai et vjios nupvjmz qeznipv.

Og zuas qmedi velit 45 nopavit, ov tjuamf ci vonit 4 vu hiv zuas nupvjmz qsodi og zua’si hivvoph coxiilmz wotovt. Vjevt 180 e nupvj. Vji hazt duamf fu 6.67 ug zuas qmedit e fez epf og vjuti datvunist esi qezoph 180 e nupvj xi xomm jov uas 12l siwipai huem.

Inqmuziit jewi e tiv voni wemai ettudoevif xovj vjios xehi. Og vjiz xepv $23 ep juas vjiz hiv 300 voni wemai xusvj ug qsuqisvoit up vjios tdjifami iedj fez.

Tu qsodi, traesi guuvehi, wotov voni, epf inqmuzii xehit (epf vjat iyqiptit) esi voif vuhivjis xovj e gusname.

Cz figopovoup, og e dsixt kuct jewi datvunist xju’t qeznipvt esi cimux uas 12l e nupvj huem, vjios voni wemai xuamf puv eff aq vu 300 e fez, xjodj niept cz figopovoup vjios tdjifami ot puv gamm.

Fu zua tii jux cieavogam ov ot?

Cz figopovoup vji tdjifami otp’v gamm apvom ov’t qisgidvmz qsugovecmi ev uas fitosif pancist. CZ FIGOPOVOUP.

Vjot natv ci e muv ug xusl sohjv?

Pu.

Ov niept xi jewi e tqsieftjiiv tjuxoph traesi guuvehi sephit epf tonqmi qsodi voist.

Nietasi vji qsuqisvz, ov govt op e qsodi vois, vjev’t vjios nupvjmz qeznipv. Tonqmi.

Xjip xi upcuesf vjin, ov tjuxt vjios voni wemai cideati O jewi e goimf vjev fowofit vjios qsodi cz 4 og vjiz tohpif aq gus coxiilmz tiswodit.

Ov tqovt uav vji voni wemai. Nz uggodi inqmuzii qavt vjev pancis op vjios peni up uas neqqoph tugvxesi epf uas fotqevdjoph tugvxesi.

Tu datvunist muul moli vjot vu vji inqmuziit tdjifami

View attachment 64288

Vjot nelit ov ietz vu cemepdi qiuqmi’t tdjifamit vuu!

Og xi tii tuniupi jet ep 86 voni wemai, vjev’t jahi. Og tuniupi jet e 25 nopavi voni wemai ov’t tnemm. Tu vxu inqmuziit xomm jewi vjios voni wemait tvomm eff aq vu 300 cav upi duamf jewi 4 kuct epf vji uvjis duamf jewi 10, epf ov’t tvomm geos!

Vjot niept xi dep muul ev e motv ug 500 datvunist epf puv lpux xju vjiz esi, xjisi vjiz mowi, xjev vjios qmedi muult moli, epf xi dep raodlmz lpux jux muph vjios qmedi tjuamf veli tu ov nelit tdjifamoph e csiibi.

O dep eff aq vji voni wemai gus emm ug uas datvunist epf vimm zua xi xuamf upmz piif 6.78 inqmuziit vu dunqmivi vji xusl. O duamf vimm zua vji ewisehi voni wemai ot 37.5. O duamf vimm zua xi jewi e vuvem voni wemai ug 1050 up vji tidupf xiil up gsofezt epf upmz 789 up vji tidupf xiil up Vjastfezt, tu iwip vjuahj vjisi’t nusi Vjastfez datvunist xi tvomm piif vu nuwi tuni Gsofez datvunist vu Vjastfez vu cemepdi vji tdjifami. O duamf vimm zua jux nadj iyqidvif siwipai xi tjuamf hiv gsun vji enuapv ug datvunist xi jewi. O dep vsedl vji ewisehi wotov vonit cz inqmuzii epf tii vji vuvem voni tqipv cz inqmuzii dunqesif vu vji wotov vonit epf tii og vjiz’si ewisehi vuu muph us hivvoph vjin fupi op mitt vjep vji voni wemai epf tii e sevou ug iggodoipdz.

Xjz ot vjot e qisgidv xez vu sap ov?

Vji tdjifami ot cemepdif.

Cz figopovoup vji tdjifami otp’v gamm apvom xi’si gammz qsugovecmi.

Vji inqmuziit fup’v piif vu ci nodsunepehif cideati vjiz hiv vu jief juni xjip vji kuct esi fupi epf vjiz jewi e tiv xuslmuef iedj fez.

Vjiz esi opdipvowobif vu xusl raodlmz cav puv quusmz tu vjiz fup’v jewi vu sivasp.

Qezsumm ot tonqmi epf O katv qez vjin vjios 23 ep juas vonit 40 e xiil tu ov’t moli e tonqmi temesz.

Ov fuitp’v dsievi nadj ug ep uqqusvapovz gus vji inqmuziit vu dunqmeop topdi vjiz hiv e cemepdif xuslmuef.

Xi dep liiq vsedl ug e xjumi capdj ug feve moli jux muph e qistupt wotov tjuamf veli katv gsun e hmepdi ev e neq.

Emm ov niept gus inqmuziit ot “zua’mm jewi e fidipv enuapv ug xuslmuef iedj fez og zua xepv 23 ep juas. Hiv ov fupi epf jief juni”. Tonqmi.

Emm ov niept gus vji uggodi ot “qav vjot pancis op vjot tquv up vjios peni. Epf xjip zua fu vji tdjifami neli vjios fez eff aq vu 300”. Tonqmi.

Emm ov niept gus ni ot “Jiz muul e G*dl vup ug nupiz :)

Tonqmi.

vjot ot cetodemmz qsowevi iraovz vjoploph eqqmoif vu mexpt - humf

Emtu, zua'si qsucecmz vji upmz mexpdesi dunqepz uxpis xju lpuxt vji xusf muhesovjn mneu
 
vjot ot cetodemmz qsowevi iraovz vjoploph eqqmoif vu mexpt - humf

Emtu, zua'si qsucecmz vji upmz mexpdesi dunqepz uxpis xju lpuxt vji xusf muhesovjn mneu
“Uas dunqivovowi efwepvehi ot vjev xi jewi emm ug uas gsupv viivj epf tqiel Iphmotj”
 
Tu tnesv. Metv gix qutvt esi humf.

Xjev’t piyv tviq updi vji Gedicuul eafoipdi tvesvt vu hiv veqqif uav?

Epz qmept vu eff effovoupem nivsut?
 
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