INSUFFICIENT FUNDS... Throwing in the Towel
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- Опубликовано: 8 сен 2024
- Mike Andes heads to Neosho, MO to help Luis turn around his Landscaping Business. He's struggling with personal employee issues, massive overhead keeping him from being profitable and insufficient funds in his bank account (actually negative).
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Luis with Freedom here, checking back in 7 months later…
We’re not bankrupt, and we didn’t quit! Micah did get let go. My friend got let go, should of took mikes advice on that one tho because we’re no longer friends lol😂
We are having the most profitable year ever, booked out 2+ months on jobs, pretty much payed off all our bad debt. We know our numbers down to the penny. Theres 4 of us now, and we should do about $500k this year. One full time guy doing maintenance, 2 guys full time landscape, and I bounce around where needed to fill the gaps.
The hunting outfitter now has an operations manager in place on salary, I decided to step back from it to focus on Freedom.
We have a baby due in a couple weeks, and God is good.
Remember, you only fail when you quit. Let’s do an update video in a year or so😁
LETS GOOOOO ❤️💪🏻💪🏻💪🏻
I didn’t get let go I quit lol tell the truth
@@MikeAndes I watch your Videos all the time i would love to pick your brain for some advise on obtaining new clients thru ads social media dont work for me i own a pest control company
@@etianpupo5445 I’d say you won getting away from anything to do with this. There’s 7billion people walking around find a new homie.
No idea what you were thinking hiring Micah. She literally didn't do a dang thing in that office.
We did a pressure washing job at one of their landscaping jobs and it was hard to get paid. They finally paid after a few days of sending emails, calling, and texting. Glad we got paid after watching how they run their operations.
Bro our AP person has an easy job because we pay all our bills on time but our AR person is hurting because all these bums wont pay and alot of them rack up invoices and go bankrupt or ghost.
Just rent the skid steer and factor it into the end cost of projects that require it. Unless you literally need to use it every single day. We rent a ton of equipment that we wouldn’t use everyday as I don’t want the liability, maintenance, or upkeep. Sell the skid steer and the debt is actually pretty manageable.
Great point. Unfortunately, the skid isn't worth the $70K+ anymore BUT I agree still
@@MikeAndes Dude needs a good accountant on site.
I’d buy used 18k 30k at the most for a skid steer starting out that’s a decent size machine
I was thinking when he said revenue was 200k and he’s got 4 employees. I do that revenue on my own and am afraid to hire someone full time
cuz you a BEAST! LOL Good work!
I was scared to employ a person so to drive my semi end dump hauling full sand, easy job but they can cost you money real easy so I employed my father and just took care of his bills and some
@FromLandVegemiteSamich as a trucking company owner something is always broken, the more equipment the more likely it is that an employee broke it.
Don’t buy 70k skid steers to look “cool”
Exactly.. buy an iPhone HD++ pro like a *normal* person
@@MrDrunkNFunky lol
I rent them when I have a project. I only pay $190 whole day
@@pabloserrano709 Exackly as soon as you drive them off the lot you lose 10-20%
@@pabloserrano709 dang! Where I live a skid steer that size is $320 a day
One of my buddies that was like a brother had his own construction business and started paying me 9.50 an hour back in 07 he was generating 1,000,000 in revenue a year . We were 23,24 years old. I’ve never been paid over 20.00 an hour and I’ve been doing lawn maintenance since fresh out of high school. Started my lawn business 2 years ago first year I wasn’t really committed, because I was working full time so was comfortable were I was at so I was mowing Saturday only every week. Second year I was more dedicated quit my comfortable job and threw my self into the business this year I will probably end with 70k for the year, and hopefully next year I will get to 150,000 God willing that is the goal. I feel for the guy making 20.00 dollars an hour like he said he worked for it and he earned his spot. Those guys are always under appreciated at all companies that’s just the truth. Someone who knows half of what he knows makes more just because he said the right words in the interview how about those niners. What a messed up day with that project .
True. This is why P4P (Pay For Performance) is so important. Harder you work, the more money you make!
@@MikeAndes I would have loved to have that at any company I work for, but none had it. Good job Mike trying to help other businesses get out of debt your one of a kind keep up the good work God bless you sir.
Hahahaha I love how y'all just ended it. Like you were going to get into how they do things and were like omg they have no idea what they're doing. The end 😂
So many startups think they need office and staff to call themselves a business. And get in debt real quick
Bingo it’s a struggle but rewarding to do it yourself
You raised your credibility in my eyes when you finally said close the business.
Yikes! Seems like this could be fixed. Owner needs to work in field. Fire office manager and best friend. Sell the skid steer. Hire a couple of helpers. Sell work.
True. When an owner is splitting attention with 3 businesses I see the likelihood of executing this plan as low. That's why I said shut it down for now.
Debt and office staff don’t happen until the business is way bigger. And debt should only be out of necessity rather than image and convenience. A used skid steer that’s still reliable & does everything it needs to costs half of the one he bought. Same with trucks.
I always know it’s a great day when THE MIKE ANDES posts a new video!
Facts!! His content is so good
Thank you! I appreciate you taking the time to watch!!
Yeah agree. His business size, HE should be the only employee and working himself, maybe a PT helper..
Him and jacob...they could generate more revenue then all combined.
These guys out here… big fancy trucks with shiny wheels and all sorts of toys. I see rushing all over town, knocking out high volumes for lower prices.
Just absolutely working their body and equipment to death to make 2/3 of the going rate.
I like long romantic walks.... to the BANK! LOL
Wow! The first one Mike has said to just shut it down. The amount they lost in wasted labor that day is unreal. What a cluster Fu*k!
Was not expecting that ending
When Mike suggests walking away from it, you know its bad.
No wonder they’re only doing 200k with 3 people. He probably used that deposit money from that deck job for his hunting or other business.
He's like Gordon Ramsey on kitchen nightmares
If only I could make food like that! LOL
Fired the office girl and the friend… both are useless and waste of money.
Office girl will be the last to be fired.
😂😂 bet @@ericriley3147
How i started, i was part time in lawncare during college. Paid with cash for everything, if I didn’t have the money I didn’t buy it, until i saved up. during my part time years started off with very old Residential equipment that i constantly fixed and broken down. But importantly i saved everything after expenses those years and last year i went full time and literally all the money saved i spent on commercial equipment and truck setup.
This year I’m making 30k I’m solo and do everything. Starting off slow and have future plans to grow and add one or multiple employees in the future.
Hope this story helps someone starting out. Some important advice you don’t have to have fancy equipment, employees etc. major debt when starting out, make do what you have and go get work!
Nothing wrong starting off with old equipment, pay with Cash, working solo.
Hopefully there is a follow up on this to see how it’ll go for him depending on which route he chooses
Hopefully next year!
I live by this guy. I am interested in a follow up. I have a lawn company in the same town.
I have a feeling office girl is taking advantage.
do you blame her for getting any easy check?
They are not large enough for her to work in the office.
Wtf lmfao why 😂
Just to remember though anyone commenting. takes so mojo to even admit and be reaching out to mike or anyone who does this that your business is failing. And lets not hate on the kid. I can tell hes got great passion but no systems in place. heck i dont and im struggling. trying to change that. We all started from somewhere. Love what you do mike and i know you get emotional and feelings for anyone you do in these turnaround series. I know you want everyone to succeed.
Mike is right he should be out in the field working you’d be surprised how much money you can make on you own with you own two hands. Screw going big. Stay small and keep it all
I live in the same town as Freedom and I am solo. I do very well.
Ya keep it all but “all” isn’t much cuz you can only be in one place at a time. With 35 employees you can be in 35 places at once so even 5% of that is a lot more then “all”
@@GarrettWilliams2017touche...
Here's the fix in my opinion.
1. Fire the office girl & best friend
2. Sort out your booking and jobs software.
3. Know your freaking numbers. Money in, money out, how many clients you got and how many jobs you can do with 2 people.
4. Sell whatever equipment is not needed.
5. Reduce expenses to the minimum without compromising on quality.
6. Advertise like hell, get more work coming in.
7. Pay for performance, instead of raising the salaries
8. Slowly get out of debt.
9. Take on more people.
10. Scale
Number 1 on this list solves a lot of the problems...
You continue to impress me Mike! A lot of great info in this video
Media team is clutch! All our camera gear was stolen on flights to this episode. Phones only were used in making this one.
4 employees only brining in $200k a year 😮😮
What is worse is the fact they are 75% landscaping. Once you remove the material cost they probably only did stick over $100k. That is why there is no money.
Thats insane.
Wild man I do that with a helper in 7-8 months
Thats why im starting slowly and by myself, no debt overhead.
That’s how I did it. I worked the weekends for 2 years while having a full time. Then I switch over to full time and have 3 employees out in the field. I manage office work and calls and I still work in the field everyday as well. Looking to make $330k this year and no way in hell do I think I can offered an office person lol or even not work in the field. For sure gotta be at $500k for that
@@xbebe Wow, thats great to hear switching over in just 2 years!
I listened to this while working the first time but watched it this morning. BRO, YOU HAD MIKE ANDES IN FRONT OF YOU!!! It kind of ticks me off. I would have had pad and paper in hand taking massive notes asking a ton of questions. The secretary could have been taking notes. Good call Mike. This dudes not serious.
Better yet they have a whole video to document it and rewatch whenever they want!
I am short enough where I could be in front of you..... and you would miss it too
I’m 3 minutes in. Just wow.. here I go to watch the rest. Love it Mike
LETS GOOO!
I could hear the pure frustration in your voice even at the start of your video, that this was a tough one. Aside from the overwhelming Debt and multiple business It was hard to understand the lack of total commitment to one business or the other.
I have always been told if you spread yourself out to thin, nothing ever grows or goes like you though it would. Even I have struggled for 6 years in my trade, but I remain focused on being the best I can offer.
Thank you for the video, You are very helpful.
The business is not big enough for secretary and manager. Everyone should be labors. He trying to run multiple business not fully established
Tough spot to be in for sure, just focus on one thing and one thing only like Mike said. Hope it works out for him
100%
Not really I think he knows what he had to do just didn't want to accept it.
Impressive for luis at the age of 20 . Good to learn/ mentored by Mike.
I am not very far from this guy. I see his yard signs all the time. Our area is economic depressed and people can't afford much. I agree with Mike 100%. Closed the lawn business and do his hunting. I know Joplin and Neosho very well. I grew up in a big business in Joplin. People around here does not like people like this showing up on a job half prepared. Word gets around real fast around here. I will take his lawn customers.
Jacob should start his own business because in my opinion he is being underpaid by quite a lot imo .
I’m so glad you make these videos
I know a young man in almost an identical situation. Wish I could have you sit with him.
Great video, and very cool for you to do what you do.
He needs to get rid of the office girl and the project manager
Solo here in St. Louis for as long as I can be, first full season next sprong. Stacking as much reserve money as possible before that first employee.
STACKING CASH like firewood for winter!
What is the 1 weird frame @7:45? It says "WHAT YOU XXXS"?
Good catch
I thought it was going to be an easter egg
didn’t have money before this but he’s 20 years old and already has a 100k in loans for landscape business, just got married which isn’t free or cheap, just bought a rental property and bought and opened a hunting lodge doing tours….i personally don’t believe that. i don’t see how you could realistically even grow that much from rock bottom in 2 years even if everything went perfectly smooth. i definitely think there was a kickstart with his business with cash injected from somewhere else. which is also probably why he struggles managing the business because he didn’t have to truly grow the business from the bottom. seems like he outgrew himself too fast. common in the landscape industry
I think you're spot on. Life insurance $$.
I dropped out at 17, immediately started a business in a different industry, made some money and have bank rolled it all into the next investment ever since. I’ve leveraged a lot of debt, Mike didn’t even get into my real estate debt. I can assure there was no cash injection at any point, other than from my own cash from working. My parents didn’t even have a college fund saved up for me like most, if that gives any reference to how average of a family I come from. All my real estate has been purchased with private investors that I’ve sought out by networking with other real estate investors.
I tried to grow too quick this year, and didn’t do it the right way, that’s why I’m in the position I’m in!
You are gonna come out of this! You go sir! Thanks for letting us come. Many will learn from this... and I can't wait to see what the next year holds in store for you!!!!
@@theluisbarrett1520this has got to be rough seeing a bunch of people judge you on a 30 minute video that's been edited. No doubt there is more to the story and more to you.
I would suggest that you step away from the comment section as yourself and come back as someone looking to gain insight on what to do now or how to start a new business. Listen to Mike, read the comments and take away everything that is knowledge, ignore the rest. Look at your deposit slip for the social media column, you are not ever going to be able to deposit likes and support from the youtube masses, but if you focus on what Mike is saying about correcting your approach you can start depositing some dollars, and that is the only reason to be in business.
Not gonna lie. It scares me when people answer a question by starting with "To be completely transparent."....
its crazy, I'm on track for 200k this year by myself, busting my ass, biggest thing for hiring in my business(custom Fab) is quality and whether or not someone is gunna be able to be taught or hold the quality I expect, and make their time profitable. dont want to go backwards, but dang 4 employees and only 200k, after expenses what do you really have to show...thats insane.
Hey Mike, question for you. Does it make sense to buy a business that has staff, contracts, equipment and then buy routes. Does it make sense to just do lawn care at scale?
Super easy to turn around. Would take 1 day for me.
One thing about being a business owner, no matter the size, is ensuring you have the ability to detect, identify, and handle issues that are costing unnecessary inefficiencies or money. I didn't get the sense from the owner he was doing those things, but instead he has his hands in too many pots and relying on hope that something will work out. It's right underneath gambling in my opinion. Because you're throwing cash out hoping you'll get lucky, instead of investing it strategically and being frugal.
Working just to stay busy. Lots of these landscaping businesses fold up and disappear around here. Starting to see why.
Great work Mike thanks for everything your share with us. 👍👏👏
If he had to live off the company wages , he couldn’t pay his personal bills. That tells you the business can’t support the high labor costs.
He sounds like a Goat Gang member by his actions! 😂
🐐
The sad part is an experienced operator could come in and clean it up within a few weeks. But as he said. Hes only giving 20%
This one was physically painful to watch. The business is a literal disaster. 1.5 people could produce the same revenue as the 4 in this company. And what is with these 20 year olds getting married and having kids? Almost no one knows themselves well enough to make that kind of decision at 20!
But he knows the folks at the bank and has a new truck so hey who cares. I despise people like this guy. Thinks he's some super capitalist but can't do any of the work.
@@beenschmokin It’s unfortunate because he’s probably a really good hearted guy, but he’s very young and in way over his head with ambitions for 10 million. He needs to get his hands dirty and put the effort into growing the business organically and probably listen to less influencer podcasts. Or work for someone else for years before making the decision to run a company. His crew had no idea what they were doing with that deck job.
@@grandifloralandscaping Spot on. He doesn't hear a word Ole boy tells him til he says more money and he perks up. The new American dream. Sit back and collect a pay check off the backs of other's hard work and skill.
@@beenschmokin True, except it’s more like the new delusion instead of dream, because it never works that way. Social media influencers have caused so much toxic business thinking among young people, and they’re destined to fail if they listen to most of it. Too many people talking about getting rich quick - when the reality is that the owner works 60-70 hour weeks for years before they finally have a big enough business to where they can relax a little.
@@grandifloralandscapinganyone can be an overnight success, as long as they have 20 or 30 years to get there.
this the type of dude to make money super easily (usually their dads are the same way) and then go and blow it all.
Except he's not making any money...
That girl has no respect for her boss and should be let go.
That's a bad friend and good friend will do everything possible to help you succeed and should hold them self to a higher stander
Mike , thank you so much for these videos they’re extremely helpful. Thank you so much quick question do you have a letter that I could copy and paste to raise prices?
In Landscape Business Course there is a template. Also, ChatGPT is really good for this!
@@MikeAndes okay great thanks Mike
Chat GPT is amazing
The biggest mistake new contractors make is buying a bunch of equipment off the bat instead of renting what you need. Also buy used. Doesn't make sense to buy a brand new one. They depreciate too much
The problem with business and new owners is they hit a run of good luck for a short time and they think it will last forever and they buy expensive equipment because they are trying to meet demands and their decisions are made in a hurry because they are busy at that time, and then slow times happen and they get in trouble
How are you allowing a part time office person trying to close deals for you? Has a project manager with only 1 other in field employee, why do you need a project manager for 2 in field employees? What are you doing with your time that you can’t help your two guys or help your part time office employee close deals? Honestly sounds like he wants others to run a big business for him that isn’t even there yet.
You only have 1 experienced employee on your team, so even if you do start closing deals, you don’t have anyone but 1 person that can get the job done but might not be in a timely manner to profit money.
- “I built all this myself”
- “I’d say I’m in one-hundred-some thousand dollars of debt”
💪💪
100% Right 👍👍👍
Wah. Good luck with his hunting business!
🔫
I think everything comes down to preparation.
The odds are already against you why not first work for one of the best in your market for a few years Learn everything they know and how they handle situations, protocols, and labor.
Get good at doing the actual physical work then after gaining experience apply that knowledge and work on being efficient. That in itself will give you an edge in the marketplace.
I need mike to come help the company I work for they don't seem to understand systems and how use them
Sure hope at 24:37 that wasn’t the actual footage from the flat tire because clearly no one is doing safety checks on the trucks
We had to spice up video with some stock footage since we didnt have any cameras with us. They got stolen on the flights to this episode. Media team came up clutch!
The problems not the debt or to much staff you can grow into that. The problem is everyone is putting in a half but effort and not qualified for their job.
Focus focus focus.
They need to come to Houston Texas the many rich people here easy to grow the bussines
Never buy anything untill you can comfortably afford it
Trucks are always a necessity so that the only thing we would ever have payments on
I just feel like nothing is ever truly resolved in this series of videos lol. He visits, points out the obvious problems the owners are already aware of, and then it ends.. Just gotta wonder how much really changes once mike leaves. Their kids tho so it's cool to see these kids trying to do their own thing from a young age..
Should have bought a Mt 100 if he needed a skid steer
How much they cost usually?
@@MikeAndes32 thousand plus buying any attachments. They aren’t cheap either. Unless you find used ones.
I bought a sk 500 at auction for 4k
And I have no debt with 500k annual revenue.
I buy everything used and fix it myself debt is like cancer to me tho I'm different 😅😂
Damn who in the right mind has all that debt and only makes that much… they make what 1 of my guys produces of work a year. Close it down…
That's the #1 thing I learned about growing a business, never to hire family or friends.
If you can’t buy the skid steer in cash don’t buy it!!
Keys to starting off are staying out of debt!
I own my 2 trucks, plows, skid steers and trailers
Don’t have financial stress during the winter months, plowing the snow is actual profit since I have machines to do the work instead of paying guys per hour
Can’t wait for the next one!!
Ive been really curious about the skid steer/forestry mulching industry myself and was curious if it was worth going into debt for it and the trailer if I already have the truck any advice would be greatly appreciated
Rent. Learn the business before you go to work for the bank loan. It's a long uphill climb unless lady luck comes your way. Consider working for someone in the business, first.
What happened right before the 27 minute mark when dude popped in, i couldn't tell lol
this is some great quality real life experience content. I'm definitely becoming a subsriber
For the copilot price lock guarantee would it guarantee the full price range spectrum? For example, let’s say we purchase the starter and eventually reach capacity to go enterprise, will the $249 price point still be accessible as long as joining before 1.1.24?
I think its only if you join or upgrade to enterprise before Jan 1st, if you upgrade after, it’ll be whatever new price they have
We have to make it simple since this is lifetime price lock. That’s why it is just for enterprise and doesn’t include the employees users. It would be hard for us to track and promise the price lock since those things can change. So you are right, just the enterprise level has the price lock
@@MikeAndes thank you Mike and MGM. I'll take this into heavy consideration before year end. May yous be blessed heading into 2024 and beyond!
I’ll sell everything flip a few houses only bc people always need a place to sleep at the right price. People done need a 50k landscaping job done
Fire the friend and the office woman. Sell the skid steer or start renting it out.
I live close to this guy. He will not last long in joplin treating customers like that
I would love to have the input from this man to come into my business and scale me to the moon
I feel like these days employees don’t get that their employer needs to make a profit off of their work or labor. They want a whole piece of the pie. They also don’t get how much money it actually takes to run that show. Business should be taught in school.
You mean business and personal finance is more important than gender studies and political science?!?!? LOL I agree!
I totally agree, the problem is the teachers have never run anything except a roll call. They’re government employees that get paid and have a pension no matter how bad they suck at teaching or what garbage they project to their class.
Wild man.
Best friend has to go
👋
Sounds like the owner didn't train his friend to handle different situations. Also didn't train Micah. He definitely failed these two employees. Like many people don't know how to change a tire and it can be frustrating for him. Owner should take the time to do some inservices/training on everything.
Lol, if yall think this is bad, then I need some real help!
$135k in dept.(luckily none of its on CCs)
$70k on a 22 f250
$38k on a MT100
$8k on a dump trailer
$19k on my moms car.
I did around $150k last year. Mostly solo with with friends helping out maybe 15-20hrs a week. I only worked for maybe 8 months out of the year too.
I have maybe 3k in my account. I have never paid myself before. Everything I get goes back into the business unless I need clothes, hygiene stuff, etc.
Bro, your so goated
New trucks and new equipment is the main problem with these guys
Great video
Glad you enjoyed it! Thanks for watching!!
Can you not hire plant and equipment in the US? See so many companies with debt on skid steers on these videos.
That’s kind of embarrassing🤣
How do these people get loan? holy cow....
Labor times three to make a profit!
In this case in love with titles he must be a CEO
Yeaaa. That’s a rough one
Let’s go🎉
I thought we just needed 2x4 😅
There’s smart money then there’s Dumb money
He needs to man up. Business is business!!
$200,000 revenue is what you can do with 2 men and a truck operation. If you have no profit running a $200,000 business you still won't make profit running $500,000.
200k/person is doable in landscaping. 4 people at 200k is just horrid.
Never hire friends or family. Ive made that mistake. It never works
Never work for them either