2. Capacity - Just because you can bid it doesn’t make it profitable.

3. Budgeting - Budgeting never works! So why bother?

4. Estimating - It’s just a crap shoot.

5. Planning/Recording - No time I have crews waiting, and time is money!

6. Reports/Evaluation - So many numbers, what to look for?

9. These rates vary from company and industry. They often are in the 15% - 35% range.

10. All companies have some form of these fees.

12. Overhead Overheads worksheets need to have all of the categories that your accounting show for overhead. Equipment can also be an overhead. (We will discuss this later.) Overhead is any cost that you can not direct cost to a job. The owner’s/manager’s pay is also an overhead. Dividends are separate.

13. Labor Cost Worksheet

14. Labor Cost These labor cost are a direct cost and should be figured into the direct cost of the job. This spreadsheet shows the effect of overtime and burden on the labor costs. Maintenance labor usually ranges in the 35%-42% of revenue. Installs labor usually range in the 25%-35% of revenue.

16. The cost of running equipment is not only based on the purchase price but also: usage, insurance, inflation, interest, maintenance costs, fuel prices etc.

19. You can change up the equipment mix to see the differing rates.

23. Entering history % along the right column will give you an approximate dollar amount per direct cost item.

26. Net profit is not your bank balance!!!!

27. Net profit doesn’t truly exist until all of your direct profits and indirect costs have been paid for the year. Most landscape companies don’t realize any net profit until fall.

28. Net profits are after owners pay but before any dividends.