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How Much Can I Make? / Why Do People Quit?
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By Scottie Claiborne
There are a lot of reasons people give up the
business...
Some are never really comfortable going out in the
middle of the night...
Some people start out with such low prices that they are
working for nothing...
Some really need to live off their income and this can
be a slow-growing business...
Some people aren't very motivated to market their
business and never get it off the ground...
Some people have family issues and can't devote the time
they need to it...
Some people get discouraged and give up easily...
Some people move and just can't handle the thought of
starting all over again...
It just stops being fun and was never a serious business
for them in the first place...
It really does take determination and time and
stick-to-itiveness to make this a business you can earn
an income off of.
I know people who only make $1k-$2K a year... then there
are people like Flamingo Surprise that have multiple
vehicles and a staff out delivering every night.
It truly is exactly what you make of it so there aren't
any ballpark earnings that people can give you. I
haven't met anyone yet who could start a new business
with a new concept and accurately gauge the financials.
Starting out, it's best to look at it the other way
around... what do you realistically think you can do
each week? Each month?
What will your pricing be? Determine that first. You
will invest an average of 3-4 hours per display
including:
time on the phone,
doing your paperwork and handling payments,
getting the sign ready,
pulling maps, checking your inventory for needed
maintenance,
loading your vehicle,
travel time,
setup time,
travel home,
travel for pickup,
pickup time,
travel home,
unloading,
maintenance,
storage.
I usually estimate another 1-2 hours per display in
marketing and other efforts it took to get that call in
the first place.
So, budget your time at around 6 hours per display.
Assuming you would pay yourself $10 an hour, that's $60
a display. IMO, that's a little low, but some people do
them for as little as $35 a display and others for as
much as $120 a display.
We like to compare a lawn greeting to sending flowers-
both are temporary but thoughtful ways to recognize an
event or happening in someone's life.
A quick look at online flower services shows you can get
a dozen roses for about $50, a custom arrangement for
$80, fruit baskets for $80-$120... and a lawn greeting
is sooooo much more memorable and fun.
So, let's say you go with $75. And you offer an opening
special of $60 for the first few months.
Let's take a stab at your first year...
Jan- 3 x $60=$180
Feb- 6 x $60=$360
Mar- 12 x $60= $720
Apr- 20 x $75= $1500
May- 25 x $75= $1875
Jun- 30 x $75= $2250
Jul- 20 x $75= $1500
Aug- 20 x $75= $1500
Sept- 25 x $75= $1875
Oct- 25 x $75= $1875
Nov- 20 x $75= $1500
Dec- 20 x $75= $1500
Annual gross receipts= $16,635
Pretty aggressive numbers for the first year, but
possible.
Out of that, take your commercial car insurance ($200),
liability insurance($250), your marketing
expenses($1500), sales and income taxes($1800), and your
other startup costs.
Net profit: $12,885 Hours worked: 1400 Per hour: $9.20
That doesn't even take into account possible credit card
processing fees, gasoline, and wear and tear on your
auto!
To be 100% honest, you can make more money in less time
working in retail or the food industry... but you get to
do something you enjoy, that works your creative
abilities and makes people happy, and still be home with
your kids.
To ever really make a decent support-yourself living at
it, you have to market it faithfully and invest some
money into your marketing and have a plan to scale up to
where you are doing enough displays to afford help.
Working by yourself, you limit the number of displays
you can do AND everything rides on your back. If you are
sick... need to go out of town or take a vacation...
everything shuts down.
That's ok if you still just consider it a hobby
business, but if you really want to make it a going
concern, eventually you have to get big enough that the
business can run even if you are ill or away.
It all depends on your vision of the business.
It's a lot of work for a part-time income, but it can be
a fun and rewarding thing to do.
It can eventually become a real business that earns a
full time income, but you have to be able to plan for
the future and take those leaps that are required to
become a real business.
Posted 4-21-09
Keywords: How much money can I make in a yard greeting
business, yard greeting business earning potential, Why
do people quit this business?, yard greeting business
income.
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