Create a business from nothing

Most of us go to work every day, we get payed an hourly wage in exchange for a service rendered, and then we go home. We never stop to think about changing our relationship to work, or think of other ways to engage with the way in which we actually earn our money. Sure, you get told to go to school so you can get a better job, but if you're like me and skipped college then that's easier said than done. Why not become the boss yourself, part-time to start, and learn about business along the way?

This is just one example of a cash business, but the principal behind it can be applied to almost any small business.

1.) Workforce: In this example we will be creating a lawnmowing service. You can participate yourself or outsource the entire workforce. Ideally you will locate people who currently earn minimum wage and are willing to work for more. You can start with 1 -2 people, but I would recommend 1 to start. For this example we will say that your employees starting salary is $10 / hour.

2.) Advertising and Acquiring Clients: You will need to invest some time here. You can advertise on social media, through word of mouth, door-to-door, and with fliers left in mailboxes. Your goal should be to find as many as 40 small yards, or a combination of smaller and larger yards to fill out a 40 hour work week.

For this example we will assume that your employee can mow one small yard in an hour, including weed eating, and that you will charge $30 for a small yard. Base your price for larger yards on the assumption that 1 hour will cost around 30 dollars, but you can go down to around $25 / hour to fill out your workday.

Attempt to find people willing to pay for a weekly service, as the guaranteed work will keep your employee's hours stable.

3.) Start mowing. You will need a small investment in a push mower and weed eater; your local home store should have several options available. I use a Troy-bilt myself as the mowers and weed eaters are rugged and good enough to start with. No need to invest in the larger machinery yet as this is a start-up.

An investment of time is needed here as well, as you will need to go with your employee and conduct jobsite training. Most people know how to mow a yard, but you want them mowing it in line with your brand. Are you going to double mow? Stripe the yard? If the grass is tall you won't be mulching the clippings, so you'll need to agree upon a dumpsite for the mower bag.

The biggest key factor here is that the yard is mowed the way you want it, and that you have to be able to trust your employee to do the same to every yard he/she mows. This business works by letting it run it's self.

4.) Collect money: There's a reason you don't talk about the money you earn at work. Your employee will be making $10 / hour in this model, but that can be adjusted based on your profits and how well the business is running. You should not feel bad about pocketing the other $15 - $20 an hour because you will have costs. You will be the one going to every house where a yard was mowed to pick up the money, your employee should not be responsible for this part. Take this opportunity to speak with your clients for a few minutes and make sure they are happy.

5.) Allocate your funds: Your employee gets his cut, now what do you do with yours? If you are getting a full $20 an hour then half of that should go into an operating fund. Yes, half. Don't play around with that number, because the mower your employee is using will break down, need new blades, need gas and oil, and eventually need to be replaced. You should have the money on hand to purchase a newer, better mower within a few weeks.

That leaves you with $10 - or does it? $5 every hour should go into savings. I cannot recommend that you don't pay taxes, as that's illegal, but every day there are un-taxed transactions and what you do with your money is none of my business. Either deposit the $5 into savings or put it in your secret piggy bank. You can use this money in an emergency, but another great idea is to pay out a bonus to your worker every few months for a job well done. I cannot stress how important it is to keep your workers happy, especially in a business where they do all the work and you sit back and count the money. Make them feel valued; buy them drinks, invest in products that make their job easier, and reward them on especially hot days.

That leaves you with $5 an hour, or a monthly salary of around $800. Not too shabby for hiring some people and paying them to do all the work. You'll never look at your boss the same way, I guarantee you.

You can expand if you're feeling froggy, but just don't lose sight of your goal - you want to remain a cash business that provides solid service at a fair price. That being said, if you can juggle 80 hours worth of yards a week split between 2 employees you will have doubled your safe earnings to $10 / hour, or $1,600 / month. That's $8,100 for 6 months out of the year for a minimal investment in time. Get out there and get earning!