Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Commercial Jobs are a Liability 🤕

18 Jan 2025 · 1 min

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Transcript of a conversation about shifting from residential to commercial property customers, the financial benefits and risks of commercial contracts, and recent revenue impacts. Speakers report moving from 300+ mostly residential customers to focusing on commercial accounts (warehouses), large monthly commercial contracts (examples: $15k, $10k, $8k), and a significant revenue drop after losing contracts—about $500,000 lost, with 2022 revenue just over $1,000,000 and 2023 revenue $639,000. A notable event: 67% of one business evaporated in one day and an $8,000/month contract was lost in October.

Questions this video answers

Over 300 customers (majority residential).

Approximately $15,000, $10,000, and $8,000 per month.

About $500,000 in revenue lost.

2022: just over $1,000,000; 2023: $639,000.

In October (year not explicitly stated).

Chapters

We went from over 300 customers, majority residential. Started adding the commercial properties. Cut out all the residential. I don't know, it's just a lot easier to maintain. Warehouses versus a high end property. And we're making more money. You took your top three customers out of the 1.4. How much is that? You'd have Mirror Lake, Fairfield? Half of it. Yeah. I mean one of them is 15 grand a month, another one's 10 grand a month, another one's 8 grand a month. Okay, so. Okay, right, so more like 40%. Okay, so they're big. That's my bigger concern. That's, that's what I see. What happened with commercial? So we just came from a place in Ontario. 67% of his business evaporated in one day.
I knew that we were losing a couple of those contracts, so we actually dropped about 500,000 in revenue. 2022, we ended with just over a million. 2023, we ended at 639,000.
That's just something to be wary of in terms of just a liability perspective when it comes to commercial. It happened in October. We lost eight grand a month property. We couldn't have done anything better. I mean, we went over the top.