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Thread: Buy an existing round or start new one?

  1. #1
    neets
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    Default Buy an existing round or start new one?

    Just wanting some advice - I'm looking at purchasing an existing round in the mornington peninsula area for around 22,000 but am unsure whether to do this or start up my own round from scratch. It's hard to tell how much competition vs work there is in this area. Any advice??

  2. #2
    Member Hustler's Avatar
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    Default Re: Buy an existing round or start new one?

    Mate start from scratch i started with nothing 18 months ago now i have 95 customers a new car all new machinery now i employ 1 casual and the phone does not stop ringing as i advitise in the local paper . Dean will give you all the advise you need with no franchise fees .With buying a round your customers may not stay with you as some dont like changing contractors .So my advise is start from scratch.

  3. #3
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    Default Re: Buy an existing round or start new one?

    start ia new one but coming into winter it is a bad time i would what to summer

  4. #4
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    Default Re: Buy an existing round or start new one?

    i would start a new one but coming into winter it is a bad time i would what to summer

  5. #5
    patch
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    Default Re: Buy an existing round or start new one?

    I am in Carrum Downs and I started from nothing I had a old celica with a 3ft by 5ft trailer and 2 stroke mower ,hand broom and a hand edger

    There is lots of work in the mornington peninsula area $22,000 for a round is outrages. Ring Dean to get a package and join INDY

  6. #6
    Translawner administrator's Avatar
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    Default Re: Buy an existing round or start new one?

    We Speak to so many franchise operators and they wish they started there own and we council many many of those operators on how to terminate there franchise agreement .
    the amazing part of most franchise operators is that they have an Independent round building up on the side and when they sell there franchise they continue on as an Independent straight away there is allways a solution


    http://www.indmowing.com.au/html/bus..._start_own.htm
    Last edited by administrator; 16-04-2010 at 10:42 PM.

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    Carrum downs Dandenong Doveton

  7. #7
    Senior Member glassngrass's Avatar
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    Default Re: Buy an existing round or start new one?

    Franchises aside - it takes many years to weed out the pitas (who seek out newbies to scam, or just want cheaper than their existing) and grow a client base that appreciates your quality service at a decent rate.
    Many start out really busy, but there is a huge diference between busy and profitable!
    On reflection, I would have been better to have purchased an established client base with third/fourth year income in my first year, rather than build from scratch.
    If I started again and could spend as little as $30K for van, trailer, branding, website, email, mobile number and established client base, I would do this rather than start from scratch.

    Considering we generally place so little value value on our established businesses, it's no wonder we later have difficulty selling them!

    Would you say to a newbie that they are better off starting from scratch, or do you really believe your business has value?

    If you were wanting to retire, what's YOUR established business worth?
    David
    Mr Sparkle Car Spa

  8. #8
    Senior Member GreenHaven's Avatar
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    Default Re: Buy an existing round or start new one?

    i bought my buisness lost a few lameo customers at first but annual income has gone up little more than 20% in the first year and i havent advertised yet but will now that things have started to slow down a little, depends on the buisness your buying and the deal you can get

  9. #9
    Translawner administrator's Avatar
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    Last edited by administrator; 16-04-2010 at 10:47 PM.

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    Carrum downs Dandenong Doveton

  10. #10
    Dedicated Member Cranbourne Lawnmowing's Avatar
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    Default Re: Buy an existing round or start new one?

    Starting from scratch means sometimes you learn the hard way.
    I feel like I've been taken advantage of a number of times, but its money and my list of customers to go keeps getting longer. Won't be long now and they will be given notice. I have learnt a lot and getting to the point now that I don't have time to be messed around or working for peanuts.

    I started 10 months ago with 1 customer and no idea other than reading Deans manual. I now have 52 customers with a cut value of around $1700. Also starting to get a lot of referrals. So its growing fast.

    I personally think what I have learnt over the last 10 months is worth more than the price of buying a round.

  11. #11
    Member of forum Sandgroper's Avatar
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    Default Re: Buy an existing round or start new one?

    I would buy an existing round thats a few years old,,all the hard work has been done for you,,being on the road all the time means you will get more customers quicker as well.

    Run away from Franchises,if you have a full round of customers why would you need to pay fees ?

  12. #12
    Senior Member gjs's Avatar
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    Default Re: Buy an existing round or start new one?

    Quote Originally Posted by glassngrass
    Franchises aside - it takes many years to weed out the pitas (who seek out newbies to scam, or just want cheaper than their existing) and grow a client base that appreciates your quality service at a decent rate.
    Many start out really busy, but there is a huge diference between busy and profitable!
    On reflection, I would have been better to have purchased an established client base with third/fourth year income in my first year, rather than build from scratch.
    If I started again and could spend as little as $30K for van, trailer, branding, website, email, mobile number and established client base, I would do this rather than start from scratch.

    Considering we generally place so little value value on our established businesses, it's no wonder we later have difficulty selling them!

    Would you say to a newbie that they are better off starting from scratch, or do you really believe your business has value?

    If you were wanting to retire, what's YOUR established business worth?
    I agree with the above it was a hard slog at first but once the ball gets rolling it really gathers pace,so existing would have been good.

    Due to retirement plans I have actually been selling parcels of my business for 12 months now.Small packages seem to make it more attractive to buyer's, rather than large asking price.

    I am now down to the last block of clients,ute and all equipment in Brisbane so if you know any body wanting to start I have kept the best to last have been with me for 1-5yrs so they should remain loyal unless you upset them I also 100 referals to chase up. asking $12,500
    give me a call on 0439894967
    cheers
    gjs

  13. #13
    Member Back to Basics's Avatar
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    Default Re: Buy an existing round or start new one?

    Where is the parcel located gjs?
    Life's a garden, dig it! Life's a garden, dig it!

  14. #14
    Senior Member DavidS's Avatar
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    Default Re: Buy an existing round or start new one?

    I have talked to a couple of guys who have bought runs, they have found that about 40% of their clients cancel their lawn mowing. As they got to know and trust the previous operator, so they feel that they have been let down and then there are others who feel that they have been sold and don't like it. Most of these are the older people. The younger ones don't care as long as the service is the same or better.
    I would still buy a run for the clients and any contracts but would not buy the equipment, unless it was nearly brand new.

  15. #15
    Senior Member gjs's Avatar
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    Default Re: Buy an existing round or start new one?

    Hi Back To Basics
    located in Ashgrove, Chermside, Everton Park, Ferny Grove, Geebung, Mitchelton, Nundah,Wavell Hts.
    gjs

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