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business. He is not trying to make money on the sale of the business. Instead, he is concerned with ( 1 ) taking care of
business. He is not trying to make money on the sale of the business. Instead, he is concerned with taking care of his existing customers and having someone take over existing contracts on equipment he has purchased.
He currently mows lawns each week and charges $lawn He mows lawns himself and has two people working for him. He supplies all equipment:
Truck: He has one truck that he purchased. The amount he still owes on the truck is $ and the payment is $ month.
Mowers: He has three new riding mowers. He owes $ on each and he pays $ month for each one.
Other Equipment: All other equipment is paid for and in good working order, and he is willing to sell all of it to you for $and you think it will last mowing months He estimates it will cost $ month for maintenance of the truck, mowers, and other equipment.
You have a degree in landscape architecture and design, and you have been the groundskeeper at a golf course for the last five years. You believe with your knowledge and entrepreneurial ideas you could improve greatly on his business model. In summary, your costs are
Truck payment: $ month
Mowers: $ month
Other equipment: $ to purchase now will last approximately months
Chief mower makes $ hour; staff worker makes $ hour. Each staff worker can mow lawnhourAverage $ lawn in Scenario or average $ per lawn in Scenario
Maintenance: $ month
Insurance: $ month
Fuel: $ gallon; gallon is sufficient to mow one lawn.
Supplies trimmer line, etc.: $ lawn
Advertising: $ month, but if you do $ month advertising, you can potentially triple your volume of contracts.
Owner you will spend time doing quality control, marketing, and planning for the future.
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